If you want to establish a company, you must make a decision on the form and extent of the business. Certain entrepreneurial criteria, however, have to be fulfilled.
Running a business or any other type of acquisition of income is considered independent when done at one's own risk, tools and media, when offered in public, when the entrepreneur him/herself is responsible for all costs, when he/she has taken care of his/her own social security and has insured him/herself against damage resulting from his/her own actions.
You can exercise your business as a sole proprietor, or in the form of a single-member company, limited or unlimited partnership, limited company or as a cooperative.
Unlimited and limited partnerships, limited companies and cooperatives each have their own specific laws. To receive more detailed information on the types of companies we advise you to familiarize yourself with those laws.
What form of business fits best for you, depends on your entrepreneurial purpose and has to be decided individually. In any case you should consult a tax advisor for a individual solution.
A single-member company is the most natural form of business where an entrepreneur has got unlimited liability.
An unlimited partnership is a small business which is to be run together with someone else. The partners are responsible for the business with their entire property.
A limited partnership can be established by at least one ordinary and one limited partner. It is typically a family-owned company in which the administrative authority and decision making lies in most cases with one partner, the general partner.
Limited companies are divided into public and private companies. It can be set up by one or several persons. The shareholders are not responsible for the operation of the company with their personal property rather to the amount of invested capital only.
A cooperative is a community the number of members and amount of cooperative capital is not predefined. The members of a cooperative are not responsible for the liabilities of a cooperative in person.
A society is always founded to fulfil one or several predefined goals. The primary purpose of a registered society cannot be to practise a business or to gain profit.