Capital reduction
A capital reduction is a formal decrease of a company’s nominal capital, often requiring creditor protection and commercial register steps.
A Swiss capital reduction lowers the nominal capital recorded in the articles and commercial register. It may be used to repay capital, eliminate losses, restructure the balance sheet or adapt the capital structure. Because it can affect creditor protection, the procedure generally requires formal resolutions, accounting documents, possible audit confirmations and public or register-based steps before registration. Payments to shareholders are restricted until statutory safeguards are satisfied. The details vary by legal form and whether the reduction is combined with a capital increase.