Annual financial statements
for LLCs

Is there an obligation to prepare annual accounts?

As a rule, limited liability companies established in Switzerland must prepare annual financial statements. Companies with double-entry accounting obligations, such as an AG or GmbH, must prepare their annual financial statements in compliance with the Swiss Code of Obligations (CO) requirements.

In addition to the duty to prepare financial statements, corporations also have a duty to disclose them. The disclosure obligation is based on Art. 958e of the Swiss Code of Obligations (CO). If the company has outstanding bonds or listed equity securities, the annual financial statements must be published in the Swiss Official Gazette of Commerce. They should also be made available for inspection to anyone who requests them within one year. All other companies need only allow creditors, who can prove an interest worthy of protection, to inspect the annual financial statements.

Some companies must also have their annual financial statements properly audited by an independent auditor. This applies to limited liability companies whose size or scope of activity exceeds certain thresholds, as set out in Art. 727 and Art. 728 CO. In this case, an independent and licensed auditor will review the annual financial statements and issue an opinion.

Key takeaway: It is mandatory for all limited liability companies in Switzerland to prepare annual financial statements. Certain disclosure and audit requirements may also apply depending on the size and scope of the company in question. As a trustee, we can help you meet these requirements and provide individual advice and support.

What does the annual financial statement of a GmbH include?

The most important components of an annual financial statement are the balance sheet, the income statement, the cash flow statement, the management report, and notes to the financial statement.

• The balance sheet (Art. 959 CO) shows the assets (assets) and liabilities (debts) of the company on the reporting date of the annual financial statement.
• The profit and loss account (income statement) (Art. 959b CO) shows the results of the business year and provides information on turnover, depreciation, expenses, and taxes.
• The cash flow statement (Art. 961b CO) provides a detailed overview of the changes in the company›s cash and cash equivalents. It shows how these have developed during the financial year due to business, investment, and financing activities.
• The management report (Art. 961c CO) is an important part of the annual financial statement. It provides a comprehensive overview of the business development and the company›s economic situation, including its order and contract situation, research and development activities, risk assessment, and the company›s future prospects.
• The notes (Art. 959c CO) contain additional explanations to the balance sheet and income statement, as well as formal information such as the company name, location, date of foundation, and description of business activities.

Certain disclosures in the notes are also required by law, such as those outlined under Art. 961a CO and Art. 961d para. 1 CO. Companies must ensure that their financial statements contain these components and comply with all legal requirements to ensure proper accounting.

The correct presentation of currencies is another important requirement in preparing financial statements. Currencies should be presented in the company›s reference currency which is material to the business.

If the company›s reference currency is not the national currency of Switzerland, the reports must additionally be made in Swiss francs. Companies must also disclose and, if necessary, explain the currency conversion rates applied in the notes (Art. 958d para. 3 CO).

As a financial services provider, we can help you prepare your financial statements and provide comprehensive advice and support to ensure that your financial statements comply with the law.

By when must the annual financial statements of a limited liability company be prepared?

According to Swiss law, the annual financial statements must be prepared within six months of the end of the financial year. A financial year in Switzerland usually runs from 01.01. to 31.12. or from 01.07. to 30.06. of the following year

The deadlines for preparing the annual financial statements are calculated from the end of the financial year. Within these six months, the company must prepare the annual financial statements, have them audited, and, if necessary, file them with the appropriate commercial registry office for registration.

It is advisable to prepare your financial statements early to ensure that all requirements and deadlines are met.

If you have any questions or concerns about deadlines and the preparation of your annual financial statements, you can contact Nexova AG. We offer comprehensive support in preparing annual financial statements and help you meet the statutory deadlines.

Can you do an annual financial statement yourself?

Preparing financial statements requires a comprehensive understanding of legal requirements and accounting standards.

Large companies with their own accounting department can usually have their employees prepare the annual accounts.

However, for a smaller company that does not have the same resources or expertise, it makes sense to utilise a trustee or professional financial services provider like Nexova AG to prepare the financial statements.

Nexova AG has an experienced and competent team of professionals who can help you prepare your annual financial statements.

Where are the annual accounts of a GmbH filed?

After the annual financial statement has been prepared and audited, it must be submitted to the relevant cantonal tax office (Finanzamt). The submission is usually made electronically via a corresponding software programme. This ensures that the annual financial statement and all related information and documents are transmitted to the tax office quickly and efficiently.