Which legal form for a professional practice in Switzerland

Opening a practice — medical, dental, legal, consulting or technical — raises a question that weighs for years: which legal form? The main options in Switzerland are three, with different rationales.

Sole proprietorship: simple, but exposed

It is the most immediate form and the one with the lowest start-up costs. The professional is the business: no minimum capital, lean accounting. The flip side is unlimited liability: personal assets answer for the practice’s debts. Suited to those starting out alone, with contained risks and no need to bring in partners.

GmbH: asset separation at contained costs

The GmbH (minimum capital CHF 20,000) introduces limited liability: personal assets are, as a rule, protected. The partners are visible in the commercial register. It is often the right balance for a practice that is growing, hiring staff and wanting to separate professional risk from private assets.

AG: image, confidentiality and continuity

The AG (minimum capital CHF 100,000, of which CHF 50,000 paid in) offers non-public shareholding, an institutional image and greater flexibility for admitting new partners or transferring the practice. It is the choice of those thinking big or anticipating a structured generational handover.

Careful: some professions have their own rules

For certain regulated professions (for example in the healthcare or legal fields) practising in corporate form may be subject to specific conditions: who may hold the shares, who may sign off on the services, which cantonal authorisations are needed. The legal form must therefore be chosen together with the profession’s regulatory framework, not solely on the basis of tax and liability.

The criteria for deciding

1. Liability: how high is the professional risk? The higher it is, the more asset separation matters.
2. Tax: expected income and location affect the burden; between Graubünden and Ticino the differences are real.
3. Partners and continuity: are you thinking of taking on partners or transferring the practice? The AG makes this easier.
4. Image: how do you want to present yourself to patients, clients and banks?

How we help you

We analyse your profession, the risk, the tax situation of the location and the regulatory constraints, then set up the right form and keep it in order with accounting and payroll. Let’s discuss.