What Is a General Partnership?
A general partnership is a partnership comprised of at least 2 individuals. A SnC exists as soon as it is registered in the Commercial Register, which is mandatory. An SnC's objective is to pursue a commercial activity.
SnC is similar to a sole proprietorship, except that it has several members.
Benefits of SnC
- The creation of a general partnership requires no founding capital
- Commercial activity can begin as soon as the company is registered in the Trade Register.
- Very low set-up costs
- Easier administrative procedures
Disadvantages of SnC
- The partners are jointly and severally liable for the company's debts to the full extent of their assets (art. 568 et seq. CO).
- Liability risk requires a high level of trust between partners
- Partners are strictly prohibited from competing with the business of the general partnership (art. 561 CO).
How Do I Create a General Partnership?
1. Written Agreement
Although strongly recommended, a written agreement between the partners is not necessary. However, it will help protect the partners and establish the guidelines for the business activity.
2. Choice of Company Name
In the past, the company name had to include the name of at least one partner. Today, it can be chosen freely. It simply has to be distinct from all others already registered in Switzerland, to avoid any confusion.
To ensure that the name of your choice is available, consult the ZEFIX company register and type the desired name in the search bar.
3. Entry in the Commercial Register
The general partnership must then be entered in the Commercial Register (art. 552 para. 2 and art. 553 CO), and basic information such as the name, place of residence and nationality of the partners, or the name and registered office of the partnership, must be published.
What Status for Partners in a General Partnership?
How can a trustee help you?
At our Geneva fiduciary, Fidulex, we are here to support and advise you in your business development. Our experts offer you the following services:
- Business start-ups (SA, Sàrl, RI, SnC)
- Becoming self-employed
- Information and advice on choosing and managing your business
- Corporate accounting and taxation
- Director's mandate (outsourced CFO)
Frequently asked questions about general partnerships
What is a general partnership (SnC) in Switzerland?
What taxes does a general partnership pay?
How does a general partnership differ from a limited liability company?
How do I set up an SnC in Switzerland?
The creation of a company requires a written agreement between the partners (recommended), the choice of a separate company name, and compulsory registration with the Registre du Commerce.
How can a trustee help manage a SnC?
A trustee can help you set up your business, obtain self-employed status, provide information and advice on business management, and offer corporate accounting and tax services.
