I need some information from taxation point of view. I am informed that one can open an SA/AG with 50K as capital, and rest 50K can be deposited to company account during first year. Correct?
If all goes well, one can put 50K and make it complete 100K as capital. But what if something goes wrong, and for frist 3, 4 years, one could not make it complete 100k, instead invest all money from capital in company operations (or it stays at 50K).
Lets say if he would like to close, liquidate the company at that point, what would be liabilities upon him in terms of meeting company capital amounts?
i- if company capital is 50k at the time of liquidation
Well one would hope that you had made a serious business plan in the first place and based on the capital requirements etc picked the correct corporate structure in the first place, so the issue should not arise.
To answer your question, you are liable to pay the outstanding capital in the event of a liquidation. It will be applied to pay of the company’s creditors and any residue will be returned to you.
As I understand it, an AG requires 100k of capital at formation, of which 50k must be "paid in" using cash. The remainder 50k can be any other certified asset owned by the founder(s), and can be things like equipment or property.
If someone can confirm and/or elaborate on this, that'd be great.
Yes, however be aware that the assets are deemed to have been sold to the company and that may have tax implications for the founder as well. And it goes without saying the assets maybe lost if the company is liquidated.
The 50k or 100k is paid as capital in the SA. It represents the equity on the balance sheet. Equity is you shareholding. In case of liquidation, everything that is left after everything was paid (including the liquidator) goes back to the shareholder. If you have losses of more than 50k you would be liable up to a 100k. When liquidating (a long process here in CH) you need to pay everything and everyone before being able to do so. If not possible you would go bankrupt which is a totally different process.