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L11 Stock Ownership Company

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Page no: L11
Question / Problem
Solution

Switzerland

 

#1 (Corporate Entity) 

Provide details on your corporate entity or company if you already have one that you plan to use with the Founder Institute.

Write the official name of the Corporate Entity and the date that it was formed.

Write the name of the Law Firm or service that formed the Corporate Entity.

Write a couple of sentences to describe the previous business of the Corporate Entity, and write a couple more sentences describing any revenues that the Corporate Entity has had to date by year and by type.

Start collecting, scanning and organizing all of the Corporate Entity documentation.

Click “Account” and fill out any information or upload any documents on the Corporate Entity. (1 Hour)

 

 
k-Ownership company (AG) Capital gets divided into stocks, e.g.10’000 stocks for nominal price of 10.
If somebody owns 1000 shares, then he owns 10%.
Shares can		 An AG requires a minimum capital of 100K CHF.50K must be delivered in cash or as assets.

 

 Only the AG with its assets Profit of the company is taxed separate from owner’s tax declarations.First the AG pays taxes on its profit.

If the company pays out dividends to the owners, then those must pay taxes again. Hence taxes at two places, some call it double-taxation.
Still the AG has the option to avoid dividend pay-outs. In my case, I could avoid payouts until my retirement, when my normal income is lower. Certainly this situation changes when more shares holders come into play with a liquidity event. They might want pay-outs.

Taxes on the profit must be paid on three levels:
Swiss confederation, canton and single towns.

Cantons also require also a tax on the capital.between 0.01  and 7 per thousand.

 

Bulgaria

Stock Ownership client of Softart

  • Niki is part of StockOwner company
  • Founder will have option of 4%

 

 

 
Type Swiss BG Estonia US Delaware
Sole Proprietary
(unlim. Liability)		 George Company
Sells Software to
Stock OwnerComp
Key Elements  
Limited LLC min 2 leva
Stock owners 50000 CHF Complicated
50000 Leva Start
Capital Increase?
Found
Below is this the same?
Must we make profit?
Profit Taxes Taxes on Profit: 10%
(200.000 € get a control)
1500€  —> 0€ (with salaries)		 Profit remains
in company
Dividend Tax when paying out 5%
Div = 0€ (Consultant George)
Avoid Using Salary possible Pay 1500€ to Niki as salary
Or use a bonus to put profit to 0
1500€ = 3000L
Insurance for employees 10% (like a tax) =
First 3000L = 1000L (twice year)
2000L = 10% = L
1200L twice, other 400L
Private Tax 10%
2500L Net Salary after
250L for taxes
———-
2250L Net Net Salary

 

 

 Questions:
  • Capital Increase? to 100.000L
    Founders will pay 4% = 4000L
  • Below is this the same?
  • Must we make profit? What do they with company that does make 
  • Safety in BG stock-ownership (example identity theft, take money from the bank)
  • Bank must in BG?
  • Accounting complicated?
  • Internet banking?

Limited in Bulgaria

Idea:

  • Replace company in Switzerland with BG Company, because of the bank
  • Can explain to bank that I invested in a startup company
  • Better than my own Swiss company

 

  • Limited Liability, LTD without access to persons

 

Bookkeeping:

BG need to a lot of detail, each booking of credit card, but Swiss do not need much detail, do not need invoices.

Example: can put all Paypal from China, because the Paypal itself counts as invoice.

Conclusion

Swiss bookkeeping will be cheaper and easy than BG bookkeeping.

 

 

Prices for Ltd. company in BG

Prices for non-vat company

Expenses Amount Billing period
Creating company – legal stuff and governments taxes 400 BGN once
Accountant 100 BGN monthly
Government taxes 10% of the profit early
Needed time: 1 week

 

Prices for VAT company

Swiss 

 
Expense Founding
Costs		 Billing Period
Gmbh / LLC 499 once
GmbH / LLC
incl. existing assets		 999 once
AG
incl. existing assets		 1099

 

Non Profit Organisation

Bulgaria

Investigate how to incorporate a non profit organisation, named economicblogs

Answer from our accountant

NON-Profit organization can be created in Bulgaria. It needs at least 7 person to create a NPO.

The accountants can provide all of needed documents and I can do the job online.

It will costs around 1600 BGN (800 EUR) in the beginning and 400 EUR every month according to the accountant.

 

Swiss Company

 
Rechtsform wenn nur Verluste Status: Einzelfirma,
Grund: Nicht Arbeitgeber gemeldet, insbes. weil kein Verkauf stattfand.
Aber ab Verkauf sollte ich es melden.
CH-GmbH, mit Gewinnen innerhalb 7 Jahren verrechnen.
Ausländische GmbH: “Aufgezehrte Darlehen ” anrechenbar steuerlich?
Rechtlicher Hintergrund warum GmbH Vorteile GmbH: Property rights, take down when
Rechtsschutzversicherung: Bis 12000 Einkommen (“Gewinn”)
Arbeitgeber hätte Fragen und im Handelsregister.
Rechtsform wenn Gewinne Alternativen:
Gesellschaft unter estnischen Recht.
E-Firma: Gewinne bleiben in Firma
Joined Ownership mit BG Inhaber.
GmbH unter CH-Recht.
Umwandlung in GmbH Qualifizierte Gründung:
Revisionsstelle um Aktiva, Passive zu überschreiben
Überprüfung der Werthaltigkeit.
Verkauf der Software der Einzelfirma grenzwertig.
Ausländische GmBH:
Anteil der CH-GmbH: jährliche Wertberichtigung Anteil als Privatperson: Nicht jährlich Wertberichtigung
Definitive Wertberichtigung steuerlich

 

Example for Swiss GmbH: Verlustverrechnung

Year Profit/Loss Verlustvortrag Taxable  Remark
2000 -15000
2001 -15000
2002 -15000
2003 -15000
2004 -15000
2005 -15000
2006 +1000 -1000 (2000) 0
2007 +18000 -14000 (2000)
-4000 (2001)		 +0 last year to subtract year 2000 –> 7 years max

 

 

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Radoslav Karadjov is the testing specialist of PromoteAuthor LLC
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