📝 Summary: How to Start a Sole Proprietorship in Switzerland
Starting a sole proprietorship (Einzelfirma, entreprise individuelle, ditta individuale) in Switzerland is the simplest way to go independent — even for many foreigners. You don’t need a notary, share capital, or complex paperwork. This guide explains:
- Who can start a sole proprietorship (Swiss, EU/EFTA, non-EU, frontaliers)
- Step-by-step registration: business name, AHV, Commercial Register, VAT, taxes, accounting
- What permits allow self-employment
- Pros and cons to consider
Whether you’re freelancing, consulting, or building a small business — this structure keeps things lean and flexible.
Introduction
If you’re living in Switzerland and want to work independently — whether freelancing, consulting, or running a small business — the simplest legal form to get started is the sole proprietorship (known as Einzelfirma, entreprise individuelle (also referred to as “raison individuelle”), or ditta individuale).
Setting one up is surprisingly simple, especially compared to founding a GmbH. Even as a foreigner, it’s often possible — as long as your permit allows self-employment. In this post, I’ll explain the steps, who’s eligible, the registration process, and what you need to consider before you begin.
📌 Legal basis:
There are no special provisions in the Swiss Code of Obligations regulating the legal form of a sole proprietorship.
What Is a Sole Proprietorship in Switzerland?
A sole proprietorship is a one-person business, fully owned and controlled by you. There’s no legal separation between you and the business: you’re personally liable for all debts and obligations.
This structure is ideal if you’re starting small — like as a freelancer, consultant, creative, therapist, or service provider. It’s also the default option for anyone offering goods or services on their own without forming a separate company.
Key Points
- ✅ No need to incorporate or hire a notary
- ✅ No share capital required
- ✅ You operate under your own name (with optional additions)
- ⚠️ You’re personally liable for debts and obligations
Who Can Start a Sole Proprietorship in Switzerland?
Swiss Citizens
Swiss nationals can indeed start a sole proprietorship — but there’s an important residency requirement:
- You must be resident in Switzerland with a registered address.
- Swiss citizens living abroad cannot officially register a sole proprietorship unless they re-establish residency in Switzerland.
EU/EFTA Nationals
EU/EFTA nationals can move to Switzerland and apply for a B residency permit if they can prove they can support themselves financially (through employment, self-employment, or other means).
- Once they have a B permit, they are generally allowed to start a sole proprietorship (raison individuelle) or work as self-employed without requiring special authorization.
- Holding a C permit (permanent residence) grants full freedom to be self-employed or run a business.
⚠️ Non-EU Nationals
With a B permit:
You need explicit authorization to become self-employed. Conditions include:
- Labor market priority rules (Swiss/EU preference)
- Economic interest in Switzerland
- Relevant qualifications and experience
- Market-competitive salary and working conditions
- A viable business plan proving sustainability
👉 For details, see:
- Admission Conditions for Third-Country Nationals into the Swiss Labor Market: Legal and Economic Criteria Explore the key legal and economic requirements for hiring third‑country nationals in Switzerland—from priority rules and labor market notifications to fair wage standards and permit criteria.
With a C permit:
You have full freedom to become self-employed, just like Swiss and EU/EFTA citizens.
🚶♂️ Cross-Border Commuters (Frontaliers)
EU/EFTA nationals who live in a neighboring country can register a sole proprietorship in Switzerland with a G permit if they:
- Have a permanent residency permit in a neighboring country
- Return home at least once per week
🔗 Source: SECO SME Portal – Foreign Nationals Starting a Business
How to Register a Sole Proprietorship in Switzerland
Once you’ve confirmed that your permit allows it, here’s how to officially set up your business.
🔹 Step 1: Choose a Business Name
Your business name must include your surname (family name), with or without your first name. You can add branding elements:
✅ Allowed examples:
- Anna Weber Coaching
- Rossi IT Solutions
Restrictions:
- Must be truthful and not misleading
- Must not conflict with public interest
- Cannot suggest a company form (e.g., GmbH, SA)
Even if not registered in the Commercial Register, your name appears in the Swiss UID register.
📚 Legal Basis
- Article 944 CO: Allows added descriptions or invented names if truthful
- Article 945 CO: Requires use of family name, forbids suffixes suggesting company status
🔹 Step 2: Register with the AHV (Social Security)
As a sole proprietor, you must contribute to:
- AHV (Old Age and Survivors Insurance)
- IV (Disability Insurance)
- EO (Income Compensation)
Contribution Rates (as of 2025):
- Standard: 10.0% of net income
- Below CHF 60,500: Progressive rates from 5.371%
- Below CHF 10,100: Flat CHF 530
Side Activity (Nebenerwerb):
- If employed elsewhere and side business earns ≤ CHF 2,500, no contributions are required (unless requested).
📚 Resources
🔹 Step 3: Commercial Register (Handelsregister)
You must register if:
- Annual turnover exceeds CHF 100,000
💡 Total turnover from all sole proprietorships you own counts toward this threshold.
📚 Legal Basis
🔹 Step 4: VAT Registration (MWST/TVA)
You must register for VAT if your turnover exceeds CHF 100,000/year.
Applies to total revenue — Swiss and international.
Voluntary Registration (Optional):
- Deduct input VAT
- Look more established
💡 VAT registration = mandatory bookkeeping, even for small businesses.
📚 Legal Basis, Ressources & Further Reading :
- Article 10 LVAT – Threshold
- Article 21 LVAT – Excluded Sectors
- Swiss Federal Tax Administration – VAT Registration
- Tax liability VAT
🔹 Step 5: Taxes for Sole Proprietors
Self-employed sole proprietors generally do not receive a salary certificate, as they don’t pay themselves a formal salary.
- Profits are declared as personal income on your tax return, based on your business accounts and personal wealth.
- If you formally employ yourself and pay a salary, you can receive a salary certificate for that income.
For limited companies (AG/SA or GmbH/SARL):
- The company is a separate legal entity and pays tax on its profits.
- The owner, as an employee, receives a salary subject to employee tax rules and gets a salary certificate.
As a sole proprietor:
You can deduct business-related expenses such as insurance premiums, equipment, and rent for office space (if applicable).
You report your business income on your personal tax return — no separate corporate tax applies.
📍 Ressources & Further Reading: SME Portal – Taxes for Self-Employed
🔹 Step 6: Accounting Requirements
- Below CHF 500,000 turnover:
Simple income & expense records - Above CHF 500,000 turnover:
Full double-entry bookkeeping (balance sheet + P&L)
📚 Legal Basis:
Swiss Code of Obligations – Articles 957 ff.
Pros and Cons of a Swiss Sole Proprietorship
| ✅ Pros | ⚠️ Cons |
|---|---|
| Simple to start | Full personal liability |
| No share capital needed | Can’t share ownership easily |
| Low administrative cost | May appear less “official” |
| Flexible and fast setup | Harder to raise capital |
✅ Key Takeaways
- Simple & Flexible: A sole proprietorship is the easiest business structure to start in Switzerland — no notary, no capital required.
- Personal Liability: You’re fully liable for all business obligations; there’s no legal separation between you and the business.
- Permit Dependent: Foreigners can register if their residence permit allows self-employment (C permit = full freedom, B permit = conditions apply).
- Registration Triggers:
- AHV (social security): Mandatory once you’re earning
- Commercial Register: Required if turnover exceeds CHF 100,000/year
- VAT: Mandatory at CHF 100,000/year, optional below
- Taxation: Business profits are declared as personal income — no separate company tax.
- Bookkeeping:
- Below CHF 500k: simple accounts
- Above CHF 500k: double-entry required
- Ideal For: Freelancers, consultants, creatives, small service providers — especially if starting lean or solo.
Related Posts & Further Reading
- Starting a Business in Switzerland: A Guide to Legal Structures for Entrepreneurs and Foreign Companies Looking to start a business in Switzerland? Our comprehensive guide breaks down the main legal structures—from sole proprietorships to AGs—to help you choose the right fit.
- How to Structure an AG Company in Switzerland: Legal & Setup Guide Looking to form a Swiss company limited by shares? Check out our complete, easy-to-follow guide on setting up an AG (Ltd/SA) — from legal essentials to step-by-step incorporation.
- Admission Conditions for Third-Country Nationals into the Swiss Labor Market: Legal and Economic Criteria Explore the key legal and economic requirements for hiring third‑country nationals in Switzerland—from priority rules and labor market notifications to fair wage standards and permit criteria.
- Studying in Switzerland: Residency Permits, Work, and Post-Graduation OpportunitiesThinking of studying in Switzerland? Here’s everything you need to know about permits, work, and what comes after graduation.
- Understanding Residency Permits in Switzerland: A Guide to B, C, and L Permits Explore how non-EU and EU nationals can access the Swiss job market, including permit types for employment.
- What Counts as Gainful Employment in Switzerland? Visa Requirements Explained (2025 Guide) Explore our detailed 2025 guide explaining what counts as gainful employment in Switzerland, including visa and permit requirements for various professional, academic, and cultural activities. Essential for anyone planning to work, train, or attend events in Switzerland.
- C Permit in Switzerland: Who’s Eligible and when you can get it Learn who can get a C permit in Switzerland, how long it takes, and what integration criteria apply. Covers key rules by nationality, early access options, and essential legal references.
