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Articles of Organization
I need Articles of Organization for a new limited liability company (LLC) in Switzerland, detailing the company's name, purpose, registered office, and initial members, with provisions for management structure and member liability. The document should comply with Swiss legal requirements and be suitable for submission to the commercial register.
What is an Articles of Organization?
Articles of Organization (Statuten in German, Statuts in French) are the foundational legal document that brings your Swiss company to life. Think of them as your business's constitution - they spell out your company's name, purpose, structure, and basic rules for how it will operate. Under Swiss law, you'll need these to register any corporation (AG) or limited liability company (GmbH) with the commercial register.
These articles must include specific details required by the Swiss Code of Obligations, like your company's share capital, voting rights, and how decisions will be made. They're not just a legal formality - they protect your interests by clearly defining how your business will run and help prevent future disputes between shareholders or partners. You can modify them later through a formal amendment process if your business needs change.
When should you use an Articles of Organization?
You need Articles of Organization when starting any formal business entity in Switzerland, especially an AG (corporation) or GmbH (LLC). This document becomes essential before registering with the commercial register - it's a mandatory first step that defines your company's legal identity and operating rules. Many entrepreneurs prepare these articles when seeking initial funding, as investors need clear documentation of company structure and governance.
Having well-drafted Articles becomes particularly valuable during major business changes like adding shareholders, changing your company's purpose, or restructuring operations. Swiss law requires you to update them for significant modifications to share capital or voting rights. Getting them right from the start saves time and money by preventing legal complications and shareholder disputes down the road.
What are the different types of Articles of Organization?
- Articles Of Association And Memorandum Of Association: Standard comprehensive package for corporations (AG), detailing both internal governance and external business objectives.
- Bespoke Articles Of Association: Customized version for companies with unique operational needs or complex shareholder structures.
- Shareholders Agreement And Articles Of Association: Combined document addressing both company structure and detailed shareholder rights.
- Articles Of Organization And Operating Agreement: Typically used for GmbHs (LLCs), covering both formation and daily operations.
- Articles Of Incorporation Foundation: Specialized version for establishing non-profit foundations under Swiss law.
Who should typically use an Articles of Organization?
- Company Founders: Draft and sign the initial Articles when establishing their AG or GmbH, setting the foundation for their business structure.
- Board Members: Review, implement, and ensure compliance with the Articles' provisions in daily operations and major decisions.
- Legal Counsel: Prepare and validate the Articles to ensure compliance with Swiss law and protect client interests.
- Commercial Register Officials: Review Articles for legal compliance before company registration and maintain official records.
- Shareholders: Must follow the rules set in the Articles regarding voting rights, share transfers, and company governance.
- Company Secretary: Maintains and updates the Articles, ensuring proper documentation of any amendments.
How do you write an Articles of Organization?
- Company Details: Decide on company name, legal form (AG or GmbH), registered office address, and business purpose.
- Capital Structure: Determine share capital amount, number and types of shares, and their nominal value.
- Governance Rules: Plan your board composition, voting rights, and decision-making processes.
- Shareholder Rights: Define transfer restrictions, pre-emptive rights, and dividend distribution policies.
- Required Documents: Gather passport copies, proof of capital deposit, and signature specimens from founders.
- Language Choice: Select official language (German, French, Italian) for registration purposes.
- Final Review: Our platform generates compliant Articles, ensuring all mandatory elements meet Swiss legal requirements.
What should be included in an Articles of Organization?
- Company Identity: Legal name, registered office location, and clear statement of business purpose.
- Share Capital: Total amount, number of shares, share classes, and nominal value per share.
- Corporate Bodies: Structure of general assembly, board of directors, and auditors if required.
- Voting Rights: Decision-making processes and majority requirements for key decisions.
- Transfer Provisions: Rules for share transfers and registration in share register.
- Financial Year: Definition of business year and profit distribution rules.
- Dissolution Rules: Procedures for company liquidation and asset distribution.
- Notices: Official communication methods and publication requirements.
What's the difference between an Articles of Organization and an Articles of Incorporation?
Articles of Organization are often confused with Articles of Incorporation in Switzerland, but they serve distinct purposes in business formation. While both are founding documents, their applications and requirements differ significantly.
- Legal Structure: Articles of Organization typically govern GmbH (LLC) formations, while Articles of Incorporation are used for establishing AGs (corporations).
- Capital Requirements: Articles of Organization can work with lower minimum capital (20,000 CHF), whereas Articles of Incorporation require at least 100,000 CHF in share capital.
- Management Structure: Articles of Organization allow for more flexible management arrangements, while Articles of Incorporation mandate a stricter board structure.
- Shareholder Rights: Articles of Organization typically include more detailed provisions for member voting and transfer restrictions, making them better suited for closely-held businesses.
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