How to Open an Initial Share Capital Deposit Payment Account with a Bank in Switzerland

Last update: 16 June 2024

In most cases, you cannot register a new Swiss start-up company without opening an initial share capital deposit payment account with a bank licenced in Switzerland. But what exactly is a share capital payment account ("Kapitaleinzahlungskonto", "compte de consignation du capital", "conto per il versamento del capitale") and what are its characteristics?

What is an initial share capital payment account and when is it needed?

A capital payment or capital contribution account in Switzerland is a temporary blocked bank account in order to demonstrate to the notary public that a company's share capital is indeed available. It is required when a new Swiss legal entity is founded, whether it is a company limited by shares (Ltd, AG, SA) or a limited liability company (LLC, GmbH, sàrl, sagl).

A capital contribution account is also needed in the case of subsequent capital increases.

What is the procedure to open a capital payment account in Switzerland?

In order to establish a Swiss company, share capital must be paid via bank transfer from the personal accounts of the shareholders into a dedicated Swiss bank account where it's blocked for the company formation time.

Once the initial capital deposit was made, the bank issues a signed confirmation letter to the attention of the notary in charge of handling the Swiss company registration. Upon notarization, the latter transfers all registration documents to the cantonal commercial registry for a final check. The cantonal registry then transmits the file to the Swiss Federal Commercial Register which, after review, makes an official publication.

The money in the capital deposit account remains blocked until the incorporation of the new company is published in the Swiss Commercial Register (here).

Once the Swiss company is officially registered, the capital contribution account is usually closed and the corresponding amount is transferred to a regular company account (that is, a current account). Some Swiss banks also transform the capital account into a normal bank account.

What are the use cases of a Swiss capital payment account?

In essence, a capital payment account is needed in Switzerland for the following operations:

• Establishment of a new Swiss company (AG, GmbH)
• Capital increase of an existing Swiss company
• Subsequent payments into the share capital

Is it possible to establish a company in Switzerland with a share capital denominated in a foreign currency?

Yes, it is. According to Art. 621 of the new Swiss corporate law in force since 1.1.2023, share capital denominated "in the foreign currency required for business operations" is also permitted (here).

However, at the time of the company foundation, the share capital in foreign currency must have a value equivalent to CHF 100,000 (or CHF 20,000 in the case of a Swiss GmbH).

Also, if the share capital of a Swiss company is denominated in a foreign currency, "accounts must be kept and financial reports must be filed in the same currency".