This glossary simplifies the legal, tax, and business vocabulary in Switzerland. You will find essential definitions related to business creation and domiciliation, insurance, accounting, and taxation, to better understand your processes and decisions.
Person or company holding shares in a corporation and having voting and financial rights.
All the assets, claims, and values belonging to a company.
Amortization
Accounting allocation of an asset’s cost over its useful life.
Meeting of partners or shareholders to make important decisions.
Protections against risks (liability insurance, LAA, LPP, business interruption).
Mandatory insurance covering employees against professional and non-professional accidents.
Compensate a business in case of interruption of its activity following a disaster.
External audit aimed at verifying the compliance of a company’s accounts.
Permit required for certain regulated professions in Switzerland.
Positive result after deduction of expenses and taxes.
Accounting document presenting the financial position of a company at a given date.
Detailed plan outlining the entrepreneurial project, strategy, and financial forecasts.
Object of the company as stated in the articles of association.
Share Capital
Amount contributed by partners to form a company.
Equity
Resources belonging to the company (share capital + undistributed profits).
All expenses necessary for the company’s activity.
Revenue
Total sales of goods or services of a company.
Account management by a specialized fiduciary in Switzerland.
Income Statement
Document summarizing the products and expenses for a given period.
Person to whom the company owes money.
Administrative and legal process of company formation in Switzerland.
Official document for declaring profits and income to the tax administration.
Amount owed by the company to a third party.
Share of profit distributed to shareholders.
Assignment of a mandatory legal and administrative address in Switzerland.
Set of legal rules governing commercial activities.
Period (often 12 months) used as the basis for preparing annual accounts.
Professional responsible for establishing, monitoring, and advising on accounting.
Sale of Swiss goods or services abroad.
Commercial document detailing a sale or service provision.
Company specializing in accounting, taxation, and administrative management.
Cash inflows and outflows in a company.
Legal status chosen for a company (SA, SARL, sole proprietorship).
Management and representation function in an LLC in Switzerland.
Organization of the procedures and legal obligations of a company.
All the operations necessary for the proper maintenance of accounts.
Identification and anticipation of financial, legal, or operational risks.
Additional compensation paid to employees, in addition to the salary.
Cantonal authority responsible for registration in the commercial register.
Holding
Company whose main activity is to hold shares in other companies.
Compensation paid to a professional for their services (lawyer, fiduciary, consultant).
Real security given to a creditor on the company’s real estate.
Tax withheld at source (35% in Switzerland) on certain income such as dividends.
Cantonal and federal tax applied to the positive results of companies.
Annual cantonal levy on a company’s equity.
Tax directly deducted from the salary of foreign workers residing in Switzerland.
Adjustment of an amount (salary, rent) based on the change of an index.
Person or company providing funds to a business in exchange for a stake.
Legal (services)
All the legal services necessary for the life of a company (articles of association, contracts, disputes).
Competent authority to judge a dispute or interpret the law.
Document (invoice, receipt) used as proof in an accounting entry.
Document defining the mandate given to a fiduciary or an accountant.
Ability of a company to meet its short-term debts.
Accounting register listing all transactions in chronological order.
Contract by which a company entrusts the operation of its business to a third party.
Contract by which a fiduciary manages certain administrative or accounting aspects of a company.
Customer segment targeted by a company’s products or services.
Difference between revenue and cost of goods sold.
Net result expressed as a percentage of revenue.
Official procedures for changing the structure, capital, or company name.
Situation where a single company controls the supply of a product or service.
Group health or provident insurance offered by an employer.
Name used by a company for its activities, different from its official registered name.
Assessment of a company’s creditworthiness by a specialized agency.
Business identification number assigned in Switzerland by the FSO.
Debt security issued by a company or a community to borrow funds.
Legal requirement for certain Swiss companies to have their accounts audited by a certified auditor.
Proposal for the purchase or subscription of securities open to the public.
Instances of management and control of a company (general meeting, board of directors, management).
All the assets, rights, and liabilities of a company or an entrepreneur.
System structuring accounts according to standardized categories.
Forecast of cash inflows and outflows over a given period.
Official contract setting the guarantees between a company and its insurer.
Mandatory system in Switzerland to ensure retirement and social protection for employees.
Document written detailing the decisions made during a meeting.
Revenue generated by a company (sales, service offerings).
Minimum number of votes or members present required to validate a decision in an assembly.
Share allocated to each partner or co-owner in a business or property.
Simple legal form where the entrepreneur is personally liable for debts.
Official name registered in the Swiss commercial register.
Document presenting the activity, strategy, and financial results of a company.
Portion of the profit that the company must obligatorily set aside as a reserve.
Insurance covering damages caused to third parties by the company’s activities.
Principle whereby the partners of an LLC or corporation are only liable for debts up to the amount of their contributions.
Total income subject to tax according to Swiss tax legislation.
Professional authorized to audit a company’s accounts.
Possibility of financial losses related to the activity or economic environment.
Compensation paid to an employee in exchange for their work.
Limited liability company, a very common legal form in Switzerland for SMEs.
Public limited company, a legal form intended for large businesses and investors.
Event covered by an insurance contract leading to compensation.
Founding document of a company defining its purpose, structure, and operating rules.
Financial aid granted by the State or a local authority to a company.
Secondary establishment affiliated with a company already registered in the commercial register.
Percentage applied to profits or income to calculate tax in Switzerland, varying according to the cantons.
Indirect tax levied on consumption, collected by Swiss companies and remitted to the Confederation.
Regular and structured recording of a company’s accounting operations.
Cash immediately available in a company.
Judicial instance competent for commercial disputes in Switzerland.
Organization representing the interests of employers.
Special status granted to non-profit associations or foundations in Switzerland.
Added Value
Difference between revenue and intermediate consumption.
Amount recorded on an equity security (share, social part).
Professional responsible for examining the accuracy of a company’s accounts.
Transfer of money between two bank accounts.
Catchment area
Geographical area from which potential customers of a business or store originate. It allows for estimating the clientele, competition, and development potential in a given territory.
Territory benefiting from tax and customs advantages for businesses
Geographical area reserved for the establishment of businesses and industries.
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