Starting a Business in German-Speaking Switzerland: The Complete Guide 2026
Sole proprietorship, GmbH, or AG? Which formation provider fits? What does it really cost? This guide compares legal forms, platforms, and costs — practical and up to date.
Switzerland set a record in 2024: over 52,000 new companies in a single year. Online platforms have drastically reduced formation costs — a GmbH now costs under CHF 1,500 in administrative fees, compared to CHF 3,000–5,000 with a traditional notary.
For freelancers and entrepreneurs in German-speaking Switzerland, three key questions arise: Which legal form fits? Which formation provider offers the best value? And what does the whole thing actually cost?
This guide provides answers — with current numbers, real-world experience, and clear recommendations.
Sole Proprietorship, GmbH, or AG: The Comparison
The three key legal forms for freelancers and founders in Switzerland at a glance.
| Criterion | Einzelfirma (Sole Prop.) | GmbH (LLC) | AG (Corporation) |
|---|---|---|---|
| Minimum Capital | CHF 0 | CHF 20,000 | CHF 100,000 |
| Liability | Unlimited personal | Limited to company assets | Limited to company assets |
| Formation Costs | CHF 100–200 | CHF 1,200–3,000 | CHF 2,000–5,000 |
| Formation Time | Immediate to 2 weeks | 3–6 weeks | 3–4 weeks |
| Taxation | Personal income only | Corporate + dividend tax | Corporate + dividend tax |
| AHV Status | Self-employed (5.4–10%) | Employee (10.6% split) | Employee (10.6% split) |
| Pension (BVG) | Voluntary | Mandatory | Mandatory |
| Name Freedom | Must contain surname | Free choice + "GmbH" | Free choice + "AG" |
The Einzelfirma: The Fastest Start
No capital, no notary, minimal formalities — the right entry point for most freelancers.
Start Immediately
The sole proprietorship exists the moment you send your first invoice. No formal founding required.
No Capital Requirement
CHF 0 minimum capital. Formation costs under CHF 200 — including commercial register.
Simple Bookkeeping
Under CHF 500,000 revenue, simplified bookkeeping (income/expense tracking) is sufficient.
No Double Taxation
Profits are taxed as personal income — no corporate tax layer.
How to Set Up a Sole Proprietorship
- Choose your business name — your surname must be included (e.g., "Meier Web Design"). Check availability at zefix.ch.
- Register with AHV — contact your cantonal compensation office or use easygov.swiss. Have contracts, invoices, or a business plan ready.
- Open a business bank account — recommended but not mandatory.
- Commercial register — mandatory above CHF 100,000 revenue, voluntary below (cost approx. CHF 120).
- VAT — mandatory registration above CHF 100,000 revenue. Voluntary below.
- Set up bookkeeping — start with Magic Heidi, Bexio, or a simple spreadsheet.
When Is the Sole Proprietorship Right for You?
The Einzelfirma is ideal for solo freelancers in low-risk fields (IT, consulting, design, writing) with revenue under CHF 100,000. You avoid capital requirements, notary costs, and double-entry bookkeeping.
The downside: You are personally liable with all your private assets. No unemployment insurance (ALV), no mandatory pension. You must cover these gaps yourself.
The GmbH: Protection and Tax Optimization
Limited liability, pension coverage, and tax advantages starting from CHF 100,000–150,000 in revenue.
Limited Liability
Your personal assets are protected. Liability limited to company assets only.
Tax Optimization
Salary/dividend split reduces total burden above approx. CHF 100,000–150,000.
Social Security
As employee of your GmbH: BVG, UVG, and ALV are mandatory — full coverage.
Professional Image
Free name choice and 'GmbH' in the name signals credibility.
How to Form a GmbH
- Choose a provider — Fasoon, NewCo, IFJ, Startups.ch, Firmify, or a local fiduciary (details in the comparison below).
- Deposit CHF 20,000 — into a blocked capital deposit account at a Swiss bank.
- Notarize the articles of association — most online providers handle this digitally, without an in-person visit.
- Commercial register entry — your provider handles the filing.
- Release the capital — after registration, the blocked account is released.
- Register for social security — AHV, BVG, and UVG as an employer.
- Set up double-entry bookkeeping — mandatory for a GmbH. A fiduciary partner or professional accounting software is recommended.
When Does a GmbH Make Sense?
From around CHF 100,000–150,000 in annual revenue, the GmbH becomes tax-efficient. Through the salary/dividend split, dividends are not subject to AHV — a lever that a good fiduciary can optimize precisely.
Also worthwhile: if you carry liability risks (large projects, contractual partners), want to bring in partners, or value comprehensive social security coverage.
What About the AG?
The AG requires CHF 100,000 in share capital (at least CHF 50,000 paid in) and is overkill for most freelancers. It makes sense for external investors, shareholder anonymity, or a planned stock exchange listing. Tax treatment and social security obligations are identical to the GmbH.
Formation Platforms Compared
The main online providers for GmbH formations in German-speaking Switzerland — with estimated total costs.
| Platform | Service Fee | Notary Incl.? | Estimated Total Cost (GmbH) |
|---|---|---|---|
| IFJ (with partners) | CHF 0 | ✓ Yes | ~CHF 740 |
| Fasoon | CHF 290 | ✓ Yes | ~CHF 1,030 |
| NewCo | CHF 490 | ✓ Yes | ~CHF 1,080 |
| Startups.ch (Free Tier) | CHF 0 | ✗ No (~CHF 600) | ~CHF 1,540 |
| Firmify | CHF 999 | ✓ Yes | ~CHF 1,699 |
What Sets Each Platform Apart
Every provider has its strengths — here are the key differences.
Fasoon — Best Reviews
Founded 2017 in Appenzell. 4.9/5 stars on Google, over 2,000 formations per year. GmbH formation from CHF 290 including notary. Partners: UBS, Baloise, and various cantonal banks.
- Documents often ready the same business day
- Price guarantee: Fasoon matches cheaper offers
- Formation can be free through partner subsidies
- Smaller portfolio of post-formation services
IFJ — Best Overall Package for Founders
The Institut für Jungunternehmen (founded 1989) has supported over 200,000 founders. Formation can be completely free through PostFinance and Swisscom subsidies.
- Free startup courses, webinars, and networking events
- Startup deals with Google, Helvetia, and other partners
- GmbH formation from CHF 500 without partners
- Note: some negative reviews about the formation process itself
Startups.ch — Market Leader by Volume
Over 3,000 formations per year across 25 locations. Free formation possible, but notary costs (~CHF 600) are extra. 4.3/5 on Trustpilot.
- Largest experience and network in Switzerland
- In-person consultation at 25 locations
- Free packages require partner contracts (bank, insurance)
- Some customers report generic templates and data sharing
NewCo & Firmify — Price vs. Convenience
NewCo (founded 2020) offers a GmbH from CHF 490 including notary — one of the cheapest options. Firmify (CHF 999) is pricier but fully remote: no notary visit, no video call, no in-person appearance required.
- NewCo: UBS partnership for free capital deposit account
- NewCo: Documents within 24 hours
- Firmify: 100% success rate, money-back guarantee
- Firmify: Only provider with zero notary contact
A Note on "Free" Formations
Free formation offers are subsidized by partners — you typically commit to a specific bank account, insurance, or accounting solution. This may or may not suit your needs. Check the conditions carefully before deciding.
What Does Formation Really Cost?
A realistic breakdown of one-time and ongoing costs.
Sole Proprietorship: CHF 100–200
Commercial register approx. CHF 120 (voluntary under CHF 100,000 revenue), AHV registration free, no capital needed.
GmbH: CHF 21,200–23,000
CHF 20,000 share capital + CHF 1,200–3,000 admin costs (notary, register, bank). Capital stays in the company as working capital.
AG: CHF 52,000–105,000
CHF 50,000–100,000 capital + CHF 2,000–5,000 admin. Only relevant for large ventures and investor fundraising.
Don't Forget Ongoing Costs
- Accounting (GmbH): CHF 2,000–7,500 per year with a fiduciary, or CHF 200–600 monthly for ongoing bookkeeping
- VAT: Mandatory above CHF 100,000 revenue — standard rate 8.1%
- Social security (GmbH): Around 12–15% of gross salary (employer + employee share)
- Social security (Sole Prop.): AHV 5.4–10% of net income, BVG voluntary (Pillar 3a up to CHF 36,288/year)
Practical tip: Set aside 25–30% of your income for taxes and social contributions from day one. Payment terms of 60–90 days are common in Switzerland — many new founders underestimate the cash flow pressure.
Choosing the Right Canton: Taxes Aren't Everything
Cantonal tax competition remains a factor: corporate tax rates range from 11.85% in Zug to over 20% in Zurich and Bern. For sole proprietors, personal income tax rates at your residence matter — in Zug you pay about 18.6% on CHF 250,000 income, versus over 32% in Basel-Stadt.
| Canton | Effective Corporate Tax Rate |
|---|---|
| Zug | 11.85% |
| Nidwalden | 11.97% |
| Lucerne | 12.32% |
| Schwyz | ~12.4% |
| Obwalden | ~12.7% |
| Zurich | 19.61% |
| Bern | 20.54% |
However: Registering a domicile in Zug while working from your Zurich apartment is a well-known risk. Tax authorities actively investigate "mailbox companies." Your business should be based where you actually work and serve your clients.
Zurich and Bern compensate for higher taxes with the best talent pool, international connectivity, and the strongest professional services ecosystem. For many businesses, these advantages outweigh a few percentage points in tax savings.
Frequently Asked Questions
Should I start a GmbH directly as a freelancer?
In most cases, no. Start with a sole proprietorship (Einzelfirma) — it costs almost nothing, is operational within days, and has minimal administrative overhead. Switch to a GmbH once your revenue exceeds CHF 100,000–150,000, liability risks grow, or you want to close social security gaps.
What happens with the CHF 20,000 share capital?
The money stays in the company. After registration in the commercial register, the blocked account is released — you can then use the capital as working funds (rent, materials, salaries, etc.).
Do I need a fiduciary (Treuhänder)?
Not necessarily for a sole proprietorship — many freelancers handle simple bookkeeping themselves with tools like Magic Heidi. For a GmbH, double-entry bookkeeping is mandatory and a fiduciary is highly recommended, especially for tax optimization through salary/dividend splitting.
What is the VAT threshold?
Above CHF 100,000 in annual revenue (worldwide), you must register for VAT. Below that, registration is voluntary — but can be worthwhile if you have high initial investments (input tax deductions).
Can I convert a sole proprietorship to a GmbH later?
Yes, this is the most common path. Many Swiss founders start with a sole proprietorship and form a GmbH once it makes financial and organizational sense. A fiduciary can help with the transition.
Which formation platform is the best?
Fasoon offers the best combination of price, speed, and customer satisfaction. IFJ is ideal if you want courses, networking, and free formation. NewCo has the lowest price with notary included. Startups.ch has the most experience and offers in-person consultation.
Useful Links
- easygov.swiss — Official federal portal for business registration
- zefix.ch — Check company name availability
- kmu.admin.ch — Federal SME portal with checklists and guides
- Starting a sole proprietorship — step by step — Our detailed guide
- Solo GmbH — Everything about single-person LLCs
- Bookkeeping for sole proprietors — Accounting made simple
Ready to Go Self-Employed?
Invoices, expenses, and bookkeeping — all in one app, built for Swiss freelancers.