Paoli
Hello,
Transitioning from a sole proprietorship to a GmbH is a significant change and can indeed introduce new complexities. Here’s how you can effectively manage this transition and what to prepare for:
Tax Implications:
Corporate Taxation: As a GmbH, your company will be subject to corporate tax rates, which differ from the personal income tax rates . Ensure you understand the local corporate tax rates and any applicable deductions or credits.
Double Taxation: Keep in mind that GmbHs are subject to double taxation—first on the company’s profits and then on dividends paid to you as a shareholder.
Value Added Tax (VAT): If your business exceeds the VAT threshold, you’ll need to register for VAT and manage VAT reporting and payments.
Financial Considerations:
Capital Requirements: A GmbH requires a minimum capital investment of CHF 20,000, which needs to be fully paid up.
Annual Reports: Prepare to produce detailed annual financial statements and undergo regular audits if your GmbH exceeds certain thresholds.
Legal Compliance:
Registration: You will need to register your GmbH with the commercial register, which involves submitting various documents and forms.
This is only the brief description of the complexities.
Feel free to ask more specific questions if there are any.
AND........
Best of luck with your transition!
