Commercial company: Case study on a commercial business

A limited company (SARL) can be set up without major capital investment. Example of a children's fashion shop based on this model.

Who creates what?

An entrepreneur sets up a children's fashion company.

Business area/target group

The commercial company specializes in party clothes and everyday wear. It provides an additional service whereby clothing can be made to order or hired. The entrepreneur runs a shop through which direct contact can be made with customers.

Selected legal structure

The entrepreneur was looking for a legal form which did not require major capital investment and therefore opted to set up as a limited liability company (SARL).

This entrepreneur must be sure to take the following into consideration:

Legal structure

The entrepreneur was looking for a legal form which required only minimal capital investment. The limited liability company (SARL) corresponds to this requirement as the minimum capital amounts to CHF 20,000 (Art. 773 CO (Swiss Code of Obligations)). The risk is limited to the total amount of share capital (which has been paid up in full).

Value-added tax (VAT)

The small business owner has budgeted for sales of CHF 250,000. She must therefore be registered with the Swiss Federal Tax Administration (FTA) within 30 days of the start of the tax period (Art. 66 LTVA (Federal Act on Value Added Tax)).


The entrepreneur works with national and international suppliers and is therefore partly treated as an importer. As an importer, she may pay customs duties, taxes and above all VAT according to a simplified procedure. This offers the following advantages:

  • Customs clearance without cash payment
  • Reduced waiting times at customs
  • Payment term of 60 days for VAT.

The entrepreneur sends her application to the “finance and accounting” department of the Swiss Customs Administration. As soon as the application has been accepted, the input tax can be deducted and reimbursement claimed.



If you wish to set up a commercial company specializing in textiles or fashion, simply follow the "Nine steps to setting up your own business":

Last modification 29.04.2021

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