What is AG (Aktiengesellschaft)?
An AG (Société anonyme / Società anonima) is Switzerland's public limited company form. It requires a minimum share capital of CHF 100,000, of which at least 50% (minimum CHF 50,000) must be paid up on formation. Shares can be issued as registered shares (Namenaktien) or bearer shares (Inhaberaktien, now restricted). Governed by OR Articles 620–763.
Current Rate (2025)
Minimum share capital: CHF 100,000. Minimum paid-up at formation: CHF 50,000. Formation costs: CHF 1,000–3,000 notary + CHF 600–1,200 commercial register fee.
Example
A fintech startup incorporates as a Zug AG with CHF 100,000 share capital (CHF 50,000 paid up), issues shares to three founders and a seed investor, and uses the AG form to facilitate future equity rounds and stock options.
How AG (Aktiengesellschaft) works in Switzerland
The AG is Switzerland's primary corporate form for larger businesses, public companies, and companies seeking external investment. It offers greater flexibility in share structure than a GmbH but has higher minimum capital requirements.\n\n**When to use an AG vs GmbH**\nChoose an AG when: planning a future public offering, issuing share options (employee stock plans are easier to implement), seeking venture capital or private equity investment (investors expect the AG form), or running a business with many shareholders who want freely transferable shares.\n\nChoose a GmbH when: the business is founder-controlled, external investment is not planned, and simplicity of governance is preferred.\n\n**Share types**\nRegistered shares (Namenaktien): the default form, owner is recorded in the share register. Required for any share with preferential rights. Bearer shares (Inhaberaktien): since 2019, only allowed if the AG is listed on a recognised exchange. For unlisted AGs, bearer shares must be converted to registered shares — holding undisclosed bearer shares in an unlisted Swiss AG is now a criminal offence.\n\n**Formation**\nLike a GmbH, an AG must be incorporated before a notary and registered in the Handelsregister. The founding shareholders adopt the articles of association (Statuten), appoint the first board (Verwaltungsrat), and provide evidence of capital contribution.\n\n**Governance**\nThe AG has three mandatory bodies:\n1. Generalversammlung (GV) / Assemblée générale: annual shareholders' meeting, approves accounts, elects board, declares dividends\n2. Verwaltungsrat (VR): board of directors, at least one member must be a Swiss resident\n3. Revisionsstelle: auditor (mandatory unless full opting-out is approved)\n\n**Employee stock options (ESOP)**\nAGs can issue conditional capital (Bedingtes Kapital) to reserve shares for ESOP and convertible bond conversion, up to 50% of existing share capital. This makes the AG far more ESOP-friendly than a GmbH.\n\n**2023 OR reform (in force since 2023)**\nThe Swiss company law reform modernised the AG: virtual shareholder meetings are now permitted, dividend advances during the financial year are allowed, and the minimum residency requirement for the board was relaxed to allow non-resident sole directors (previously at least one Swiss resident director was required).
Related terms
A GmbH (Société à responsabilité limitée / Società a responsabilità limitata) is Switzerland's most common private limited company form. It requires a minimum share capital of CHF 20,000, all of which must be paid up on formation. Liability is limited to the company's assets. It is governed by the Swiss Code of Obligations (OR/CO), Articles 772–827.
Gewinnsteuer is Switzerland's corporate profit tax. At the federal level, the direct federal tax (direkte Bundessteuer) is levied at a flat rate of 8.5% on profit after tax, which equates to an effective rate of approximately 7.83% on pre-tax profit. Cantons levy their own Gewinnsteuer on top, meaning the combined federal and cantonal effective rate varies by canton.
In Switzerland, dividends paid by a company are subject to Verrechnungssteuer (withholding tax) at 35% at source. Shareholders resident in Switzerland can reclaim the full 35% against their personal income tax (Einkommenssteuer). For qualifying corporate shareholders holding at least 10% of share capital (or participation worth CHF 1 million), a Beteiligungsabzug (participation deduction) effectively exempts most dividend income at the corporate level.
Kapitalsteuer is a cantonal tax levied on a company's net equity (paid-in capital plus reserves plus retained earnings). It is a purely cantonal and communal tax — there is no federal Kapitalsteuer. Rates are low (typically 0.001 to 0.5% of net equity annually) but it is a recurring annual cost even in loss years.
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