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.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Continue Reading
Advertisement
Comments

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Published

on

Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

Continue Reading

Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Published

on

Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

Continue Reading

Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Published

on

oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

Continue Reading

Trending