How to Register With the AHV Compensation Fund as a Self-Employed Person
Starting freelance work in Switzerland? Registering with the AHV is your first mandatory step. Skip it, and you'll face back payments, interest charges, and gaps in your pension.
What is the AHV and Why
Registration Matters
The AHV (Alters- und Hinterlassenenversicherung) forms the foundation of Switzerland's pension system. You'll also see it called AVS in French-speaking cantons and OASI in English documents. As a self-employed person, you're responsible for your own registration and contributions—no employer handles this for you.
Foundation of Swiss Pensions
AHV forms the 1st pillar of retirementMandatory for Everyone
Working or living in SwitzerlandPay-as-You-Go System
Your contributions fund current retireesWhy This Affects Your Future
Each year of contributions counts toward your pension. Miss a year, and your retirement income drops by approximately 2.3%.
Are You Actually Self-Employed? The Official Criteria
Before registering, confirm you qualify as self-employed. The compensation fund makes the final determination, and getting it wrong creates serious problems.
Signs You're Self-Employed
The authorities look for these indicators:
- Multiple clients (not just one)
- Financial risk — you bear costs and potential losses
- Own equipment and tools for your work
- Freedom in execution — you decide how to complete work
- Issuing invoices in your own name
- Marketing your services through advertising or outreach
- Setting your own prices and negotiating terms
Warning Signs of Fake Self-Employment
Working primarily for one client? The compensation fund will scrutinize your situation. Switzerland actively combats "Scheinselbständigkeit" (sham self-employment).
Red flags that suggest employment, not self-employment:
- One client provides most of your income
- The client controls when and how you work
- You use the client's equipment and workspace
- Fixed working hours set by the client
- No genuine business risk on your side
The consequences are severe. If reclassified as an employee, your client must pay back AHV contributions for up to five years—plus interest. They may also need to add you to a pension fund retroactively.
Quick Decision Guide
Are You Self-Employed?
Use this guide to determine your next steps before registering.
Register as Self-Employed If
You meet these criteria for genuine self-employment.
- Work with multiple clients
- Issue invoices for services
- Make business decisions independently
- Bear financial risk for your work
Check With a Professional If
These situations require expert advice before registering.
- Have mainly one client
- Work on-site at a client's location regularly
- Use a client's tools and equipment
- Follow a client's instructions closely
Different Rules Apply If
These structures have separate registration requirements.
- You own an AG or GmbH
- You're in a partnership
- You inherited a business
- You work for your own company
When and Where to Register
Register with the compensation fund in the first quarter after starting your self-employed activity. The ideal moment is when you issue your first invoices. You cannot register before starting work—the fund needs proof of activity.
Finding Your Compensation Fund
Where you register depends on your situation.
Online Registration Options
Most cantons now offer digital registration. You can:
- Complete forms directly on cantonal compensation fund websites
- Use the official portal at selbststaendig-erwerbend.ch
- Download PDF forms to fill and submit
Find your cantonal fund at ahv-iv.ch under "Compensation Offices."
The online process is faster and lets you upload supporting documents directly.
Documents You'll Need
The Complete Checklist
Gather these before starting your application. The fund requires evidence of multiple clients and genuine business activity.
AVS number, ID, contact details
Minimum 2 invoices required
Client contracts, quotes, estimates
Activity description, website, marketing
Understanding the Registration Form
The form asks for information across several categories:
Personal Data Section
Standard identification details plus your AVS number. If you've worked in Switzerland before, you're already in the system.
Activity Description
Be specific but concise. Describe what you do in clear terms—avoid lengthy job descriptions. Include your:
- Main sector or job title
- Whether this is your primary or secondary work
- Approximate activity rate (percentage of full-time)
Work Location
Choose the option matching where you work most often:
- Private home
- Own business premises
- Client locations
Commercial Relationships
This section proves you're genuinely self-employed:
Client information: Provide at least two client names. Attach invoices or contracts as proof.
Client acquisition: Explain how you find clients. Attach any advertising or marketing materials.
Payment terms: Describe your remuneration method—hourly, project-based, or other arrangements.
Legal Structure
Most freelancers choose "sole proprietorship" (Einzelunternehmen). Other options exist for partnerships or inherited businesses.
Note: If you own an AG or GmbH, you're considered an employee of your own company. Different registration rules apply.
2025 Contribution Rates
Self-employed contributions cover AHV, IV (disability insurance), and EO (income compensation). The combined rate is 10% of your net annual income.
| Component | Rate |
|---|---|
| AHV (Pension) | 8.1% |
| IV (Disability) | 1.4% |
| EO (Income Compensation) | 0.5% |
| Total | 10.0% |
Income-Based Scaling
Lower incomes benefit from reduced rates.
Payment Schedule
First year: Based on your income estimate (self-assessment).
Following years: Quarterly advance payments (Akonto) based on previous year's income.
Final settlement: After tax assessment, the fund calculates actual contributions. You'll receive a bill for any difference—or a refund if you overpaid.
Budget warning: After a successful year, your next AHV bill could be significantly higher. Set aside funds throughout the year.
Tax Benefits of Your Contributions
Here's the good news: all AHV/IV/EO contributions are fully tax-deductible from your income at federal, cantonal, and municipal levels.
Additional Savings Through Pillar 3a
Self-employed persons without a 2nd pillar pension fund can make larger tax-deferred retirement contributions:
| Situation | Maximum Annual Contribution |
|---|---|
| With 2nd pillar | CHF 7,258/year |
| Without 2nd pillar | Up to 20% of net income, max CHF 36,288/year |
These contributions reduce your taxable income while building retirement savings.
After Registration: What Happens Next
The compensation fund reviews your application and supporting documents. They'll confirm whether you qualify as self-employed—typically within a few weeks.
Your Ongoing
Responsibilities
Once registered, you must fulfill these obligations to stay compliant.
Quarterly Payments
Pay advance contributions based on estimated income.
- Due every quarter
- Based on previous year
- Adjusted annually
- Final settlement after tax
Report Changes
Notify the fund of significant income changes.
- Income increases
- Income decreases
- Business changes
- Address updates
Keep Records
Maintain documentation for audits and tax filing.
- All invoices
- Expense receipts
- Client contracts
- Bank statements
What You're Not Covered For
Self-employment means accepting certain gaps in protection. Unlike employees, you don't have automatic coverage for these situations and may need to arrange private insurance.
No Unemployment Insurance
Cannot claim benefits if work dries upNo Mandatory Accident Insurance
Consider private coverageNo Mandatory 2nd Pillar
Optional, but worth consideringSpecial Situations
Working Past Retirement Age
After reaching reference age (65 for men, gradually increasing to 65 for women by 2029), you can continue working with these rules:
- Tax-free allowance of CHF 16,800/year
- Contributions above this amount now count toward closing pension gaps
- You can waive the allowance to maximize pension credits
Foreign Nationals in Switzerland
- C permit holders: Can become self-employed without restrictions
- B permit holders: Need cantonal approval for self-employment
Commercial Register Requirements
Self-employed status comes from the compensation fund, not the Commercial Register. However, registration becomes mandatory if your annual turnover exceeds CHF 100,000.
Frequently Asked Questions
Can I register before starting my activity?
No. The compensation fund requires proof of actual work—invoices, contracts, or receipts. Register once you've begun operating.
What if I have only one client initially?
This raises questions about genuine self-employment. Document your business development efforts and aim to diversify quickly. The fund may still approve you with evidence of business risk and independence.
Do I need an accountant for registration?
Not required, but accounting software helps track income accurately for contribution calculations. Clean records also provide the proof documents the fund requests.
How long does approval take?
Typically 2-4 weeks after submitting complete documentation. Missing documents delay the process.
What happens if I don't register?
You'll owe back contributions plus interest. Pension gaps accumulate. In serious cases, penalties apply.
Take the Next Step
Track your freelance income accurately from day one. Magic Heidi helps you manage invoices, monitor expenses, and maintain the records you need for AHV contributions and tax deductions.