The choice of the legal status of companies

The choice of legal status is an essential element in the creation or evolution of the company. As we have explained on our website, you have the choice between having a company considered as a natural person (individual) or legal entity. Both choices offer advantages and disadvantages that we will discuss.

1. Natural person:

In order for you to be able to understand the definition of a natural person (individual) fairly easily, we will avoid technical terms and try to simplify it as much as possible. A natural person (individual) is a person with a surname, first name, address, date of birth and an identity document like you, dear reader.

According to Swiss law, certain legal statuses of companies are considered to be natural persons, such as;

  • A sole proprietorship
  • General partnership
  • Limited partnership

2. Legal entity

The legal entity is an entity holding a legal personality with a name and an address, it must be represented by at least one natural person (individual). The status of legal personality gives this person rights and obligations. Examples: signing a contract, buying, selling, advancing, extending, developing, suing and being sued.

  • Limited liability company (Sàrl)
  • Limited company (SA)
  • Cooperative company
  • Other legal entities (associations and foundations)