Insights
How Does Crowdfunding Work in Switzerland?
There are no specific regulations for crowdfunding or crowdinvesting under Swiss law. However, operators of crowdinvesting platforms and companies wishing to use crowdfunding should know which activities require a license, who is subject to the Swiss Anti-Money Laundering Act and when the duty to publish a prospectus arises with a public offering.
When Does a Platform Operator Become an Employer?
The distinction between self-employment and employment under Swiss law is not always clear. Case law states that the circumstances of the specific situation will be determinative, which makes it important for service platform operators to consider the issue before building the platform.
How Can an Out-of-Court Settlement Be Made?
An out-of-court settlement enables an existing or threatened legal dispute to be resolved by mutual agreement. This requires concessions from both sides and a freshly drafted agreement.
Electronic Signatures in Switzerland: Which Signature for Which Contract?
Many companies find that concluding contracts digitally and using electronic signatures can bring significant efficiency gains. Whether a digital signature is sufficient and which type of e-signature should be used in any given case will depend upon the type of legal transaction and is partly regulated by law.
Do Companies Based in Switzerland have a Right to a Bank Account?
Anyone who wishes to establish a company normally needs a bank account in order to pay in the capital. Company foundations where the capital contribution is made using cryptocurrencies or other contributions in kind are excluded from this. However, these startups will also normally require a bank account in the local currency at the latest when they start business operations.
Bankruptcy from a Creditor’s Perspective
Bankruptcy has serious consequences not only for the owners and employees of the affected business, but also for its business partners. It is therefore important for creditors to understand how bankruptcy proceedings work and what rights they have.
NFTs and Trademarks - How to Deal with Legal Uncertainties
NFTs have frequently been in the spotlight due to copyright infringements. However, alongside copyright issues, creators of NFTs also need to be clear about trademark law implications.
Wrongful Termination - What Employers and Employees Need to Know
Under Swiss law, it is possible to terminate an employment contract for no specific reason. However, before ending an employment relationship with an employee, employers should ensure that the termination passes the wrongful termination test.
New Company Law: Important Changes to Capital Requirements
From 1 January 2023, amendments to Swiss company law mean that some changes will take effect. These are also of interest to startups and SMEs, as they enable a more flexible form of capital structure and simplify certain aspects of company foundation.
Wallet Provider Insolvency - This Is What Happens to Crypto Assets Held in Custody
Not your key, not your coin - this principle also applies in Swiss insolvency law. However, under certain conditions, crypto-based assets held by a third party can be separated from the insolvency estate of a wallet provider for the benefit of customers. Whether assets will be returned successfully depends upon the exact form of custody.
What Rights Do Substantial Minority Shareholders Have in a Swiss Company Limited by Shares?
Swiss company law is based on the majority principle. A simple majority is sufficient for most decisions. However, minority shareholders also have rights which cannot be taken away from them. Clarity about the type and scope of these rights should be sought prior to founding a company.
Overtime Compensation - Does it Apply to Senior Managers?
Whether employees are covered by labor law working time regulations depends upon factors such as what role they undertake and whether they make significant decisions for the company. This question may be particularly hard for smaller, growing companies to answer.
DAOs - a Legal Perspective
In contrast to traditional companies, Decentralized Autonomous Organizations (DAOs) have neither a management board nor a registered office. Therefore, under Swiss law they have no separate legal personality. This gives rise to a number of legal uncertainties.
Terminating a Swiss Employment Contract - What You Need to Know
Even startups and growing companies sometimes need to dissolve an employment contract. However, before giving notice the party doing so should be clear exactly how and on what grounds an employment relationship can be terminated lawfully.
An Essential Guide to the Legal Framework for Digital Shares
The latest changes to securities and corporate law enable Swiss companies to digitize many company law procedures. Digital shares and smart contracts allow share transfers and shareholder agreements to be largely programmed and executed automatically.
How Employees Can Share in a Startup’s Success
Commissions, revenue sharing, phantom shares, or employee shares? Deciding which form of success-based remuneration is most suitable depends upon several factors. Knowing the legal framework can help find the right model.
Social Security Court Holds that Uber-Drivers Are Employees
Platform and app operators like Uber typically see themselves as mere intermediaries between service providers and end customers. The criteria that must be met in order for service providers to qualify as self-employed for social security purposes were laid down in a recent judgment from the Zurich Social Security Court.
Swiss Federal Court Rules on Selling of Seized Crypto Assets
If seized assets in criminal proceedings are liquidated before a court has rendered a final decision, the prosecuting authorities must ensure that they are liquidated in a way that has as few negative ramifications as possible on the proceeds they can generate. If the criminal justice authorities do not have the requisite knowledge for this, they must appoint an external expert.
Blockchain, Tokenization and Raising Capital: What to Bear in Mind when Issuing Utility Tokens
The regulatory provisions that need to be taken into account when issuing and managing tokens depend on how those tokens are classified in law. Even tokens that appear to be typical Utility Tokens can, on closer inspection, serve economic purposes that go beyond mere utility.
Sole Proprietorship, Limited Liability Company or Company Limited by Shares? What Startups Ought to Know
For anyone looking to found a company, there are a range of potential legal forms available under Swiss law. On closer examination, however, only a few of these forms will typically be viable. The appropriate form is determined by the number of stakeholders, the size of the company and the seed capital available.