Connect with us

Markets

The Swiss corporation – a short guide

Published

on

registration
  • The Swiss corporation – a short guide

One of the most widely used business structure in Switzerland is the corporation. A Swiss corporation (known as AG in German or SA in French) has the legal structure of a joint-stock company. The Swiss corporation is often used as a business structure by foreign companies who conduct business operations in Switzerland through subsidiaries.

The Swiss corporation is a distinct legal entity under Swiss law and its liability is often limited only to its assets. The company’s capital is determined before the registration process and it divided into shares.  This type of company has the legal obligation to conduct annual independent audits and structure its financial account in accordance with the Swiss legislation.

To register a Swiss corporation, it is required to have a signed capital of minimum 100,000 CHF, from which 20% or at least 50,000 CHF must be paid up during the company’s registration procedure.  An important advantage of the Swiss corporation is that the company’s shareholders have the right to remain anonymous, if they wish so. Foreign entrepreneurs can be shareholders in a Swiss corporation; however it is required for the company to have at least one director that is a Swiss resident.

Main advantages of a Swiss corporation

  • The liability of the company is limited to its assets;
  • The shareholders can remain anonymous;
  • Inheritance of shares is made through a simple process;
  • The annual financial statements must be published only if the Swiss corporation is listed on the stock exchange or has outstanding bonds;
  • It is a suitable business structure for holding companies.

Disadvantages of the Swiss corporation

The most important disadvantage of this type of business structure is the fact that it requires quite a large amount for the minimum paid up capital.

Swiss corporation formation steps

The Swiss corporation must have at least three shareholders, from which one must be a Swiss national and a resident of Switzerland. However, it is possible to hold shares in a trust by third parties. Although it is required to have at least three holders for the company formation, the founders are allowed to withdraw after the founding procedure. It is not uncommon to have a Swiss corporation with just one shareholder.

The next step is to draft the articles of incorporation, to establish the governing bodies of the Swiss corporation and to pay up the minimum required share capital.

The founding procedure is ended after the Swiss corporation is registered in the commercial registry and the entry is published in the Swiss Commercial Gazette.

Governing bodies of the Swiss corporation

The highest governing body of the Swiss corporation is the General Meeting of Shareholders, which has the most important powers. This includes defining and modifying the articles of incorporation, electing the board of directors, choosing the company auditors and approving the annual balance sheet and income statement. The general meeting of shareholders is also responsible with deciding the distribution of profits and ratifying or approving the decisions of the board of directors.

The board of directors is the managing body of the Swiss corporation and it consists of one or more members that are also shareholders. The majority of the board must be composed of Swiss citizens or European citizens that are residents of Switzerland. Exceptions are allowed in the case of holding companies. In either case, at least one of the company’s representatives must be a Swiss resident.

Lastly, the statutory auditors are in charge with examining the accuracy of the annual financial statements and report to the board of directors or to the shareholders at the annual general meeting. Auditors must be certified and independent.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

Published

on

Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

Continue Reading

Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

Published

on

Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

Continue Reading

Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

Published

on

Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending