How to Register a Sole Proprietorship in Switzerland: Complete 2026 Guide

Starting a sole proprietorship in Switzerland is the fastest way to become your own boss. With 326,205 active sole proprietorships across the country, it's the most popular business structure for freelancers and independent professionals.

Swiss entrepreneur starting a business

Here's what you need to know to set up your business correctly—from naming requirements to tax registration—plus the hidden costs nobody talks about.

What is a Sole Proprietorship in Switzerland?

A sole proprietorship (Einzelfirma, raison individuelle, ditta individuale) is a business owned and run by one person. There's no legal separation between you and your business—you are the business.

Key characteristics:

  • No minimum capital required to start
  • You keep all profits after taxes
  • Simple setup with minimal paperwork
  • You're personally liable for all business debts

Think of it this way: If your business owes CHF 50,000 and can't pay, creditors can go after your personal savings, property, and other assets.

Is It Right for You?

Sole Proprietorship vs. GmbH

Understanding the advantages and disadvantages before you commit.

The Challenges

What You Need to Watch Out For

The disadvantages that many new entrepreneurs overlook.

Quick Comparison

Sole Proprietorship vs. GmbH

Rule of thumb: Start with a sole proprietorship if you're testing a service-based business. Switch to a GmbH when you hit CHF 200,000+ revenue.

FactorSole ProprietorshipGmbH
Setup costCHF 120-500CHF 2,000-4,000
Minimum capitalCHF 0CHF 20,000
Personal liabilityUnlimitedLimited to capital
Setup time2-4 weeks4-8 weeks
AccountingSimplified (under CHF 500K)Always double-entry
CredibilityLowerHigher
Tax treatmentIncome tax on profitsCorporate + income tax

Who Can Start a Sole Proprietorship?

Swiss Citizens

If you're 18+ with no recent bankruptcy or relevant criminal convictions, you're good to go.

EU/EFTA Nationals

You need a residence permit that allows self-employment:

  • B permit (residence): Allows self-employment
  • C permit (permanent): Full self-employment rights
  • G permit (cross-border): Allowed with approval
  • L permit (short-term): Case-by-case basis

Non-EU/EFTA Nationals

More restrictive. You typically need:

  • C permit (permanent residence), or
  • B permit with explicit self-employment authorization from cantonal authorities

Getting a work permit solely to start a sole proprietorship as a non-EU national is difficult. Switzerland prioritizes permit holders who already have employment.

Special Cases

Under 18? You need your legal guardian to represent the business legally.

Married? In community of property regime, your spouse must consent to business activities that exceed ordinary management.

Registration Process

Step-by-Step: Registering Your Sole Proprietorship

Follow these 10 steps to set up your business correctly and avoid costly mistakes.

Registration Steps

The Complete Registration Process

Everything you need to do, in the right order, with realistic timelines and costs.

Choose Your Business Name

Your business name must include your surname. That's the law. Acceptable: 'Müller', 'Anna Müller', 'Müller Grafikdesign'. Not acceptable: 'Creative Studios' (no surname), 'SwissDesign GmbH' (implies different structure).

  • Search the Zefix Central Business Name Index for availability
  • Ensure surname is prominently featured
  • Avoid names that imply a different legal structure
  • Check availability is especially important for commercial register

Write Your Business Plan

Even without seeking funding, a business plan forces clarity on your service offering, target market, competition, pricing, and first-year projections. Time investment: 8-12 hours for a solid plan.

  • Define your exact service offering
  • Identify target market and what makes you different
  • Calculate pricing that covers costs plus salary
  • Project first year revenue and break-even point

Register with AHV/AVS (Mandatory)

Non-negotiable within 90 days of starting. Register with your cantonal compensation office. Contribution rates: 5.371% to 10% of net income depending on earnings. Total social security contributions typically 8-12% of net income.

  • Complete AHV registration form with compensation office
  • Submit passport/ID copy and proof of residence
  • Provide business description and revenue projections
  • Processing time: 2-6 weeks to receive AHV number

Commercial Register

Mandatory if annual revenue exceeds CHF 100,000 or if you operate in a commercial manner. Optional registration increases credibility. Cost: CHF 120-200. Processing: 5-60 days depending on canton.

  • Submit completed registration form
  • Provide ID/passport copy and proof of signature
  • Include proof of regulated profession authorization if applicable
  • Official protection of your business name

Get Authorizations for Regulated Professions

Healthcare, finance, legal, construction, hospitality, and transportation fields require cantonal or federal licenses. Check with your cantonal economic affairs office before operating.

  • Check if your profession requires licensing
  • Apply for cantonal or federal permits as needed
  • Obtain health permits for hospitality businesses
  • Get professional liability insurance if required

Open Business Bank Account

Not legally required but highly recommended. Separates personal and business finances, makes accounting easier, looks professional. Cost: CHF 100-300 annually. PostFinance offers first two years free.

  • Compare offerings at UBS, Credit Suisse, Raiffeisen, PostFinance
  • Bring personal ID and proof of business registration
  • Provide business description to bank
  • Consider digital banks like Neon or ZKB

Arrange Insurance Coverage

Mandatory: Health, accident (if 8+ hrs/week), AHV/AVS. Recommended: Professional liability (CHF 500-2,000/year), business interruption, legal expenses, income protection.

  • Secure health insurance within 3 months of starting
  • Add accident coverage as self-employed add-on
  • Get professional liability if you provide advice/services
  • Consider income protection (disability insurance)

Register for VAT (If Applicable)

Mandatory if annual revenue exceeds CHF 100,000. Can register voluntarily at lower revenue to reclaim VAT on expenses. Rates (2026): 8.1% standard, 2.6% reduced, 3.8% accommodation.

  • Apply online through Federal Tax Administration portal
  • Receive VAT number in 2-4 weeks
  • File quarterly or biannual VAT returns
  • Use accounting software for automatic VAT calculation

Register with Tax Authorities

Inform cantonal and municipal tax offices. You'll receive questionnaires about expected income, and authorities calculate provisional payments. Sole proprietorship profits are taxed as personal income.

  • Complete tax office questionnaires
  • Set up provisional quarterly/biannual payments
  • Understand deductible expenses: home office, equipment, software, insurance
  • Hire a tax advisor for first year (CHF 800-2,000)

Set Up Accounting System

Under CHF 500K revenue: simplified cash accounting works. Over CHF 500K: double-entry bookkeeping mandatory. Better solution: Use accounting software from day one. Record retention: Keep all records for 10 years.

  • Choose between manual spreadsheets or accounting software
  • Set up invoice templates with automatic VAT calculation
  • Track expenses with receipt photography
  • Import and categorize bank statements automatically
After Registration

First 90 Days: What Happens Next

Your business is registered. Now comes the real work: setting up operations, finding clients, and building momentum.

Swiss business office setup

Month 1: Administrative Setup

  • ✅ Open business bank account
  • ✅ Set up accounting system
  • ✅ Create invoice templates
  • ✅ Draft client contracts and terms
  • ✅ Set up digital filing system

Month 2: Client Acquisition

  • ✅ Build basic website or portfolio
  • ✅ Set up LinkedIn profile
  • ✅ Reach out to potential clients
  • ✅ Join relevant professional associations
  • ✅ Attend networking events

Month 3: Operations & Refinement

  • ✅ Send first invoices
  • ✅ Track all expenses diligently
  • ✅ Review pricing based on market feedback
  • ✅ Set up quarterly tax provisioning
  • ✅ Evaluate first quarter performance
Common Mistakes

Mistakes to Avoid

Learn from others' mistakes and save yourself time, money, and headaches.

When to Convert to a GmbH

Consider upgrading your legal structure when:

Revenue exceeds CHF 200,000-300,000
Tax optimization becomes more important. Corporate structures offer more flexibility.

You need to limit liability
Taking on larger contracts or clients where errors could be costly.

You want to bring on partners
Easier to split ownership and define roles with a corporate structure.

You're planning to sell
Selling shares of a GmbH is simpler than transferring a sole proprietorship's assets.

You need outside investment
Investors require equity stakes, which sole proprietorships can't offer.

The conversion process involves transferring assets to the new company and closing the sole proprietorship. Work with a notary and tax advisor to structure it properly.

The True Cost of Starting a Sole Proprietorship

Here's what you'll actually spend to launch and run your business.

One-Time Costs

CHF1,000-3,000/month
Initial Investment
  • AHV/AVS registration: CHF 0
  • Commercial register: CHF 120-200
  • Signature authentication: CHF 20-50
  • Business cards/branding: CHF 100-500
  • Website setup: CHF 300-1,500
  • Tax advisor consultation: CHF 500-1,000

Annual Costs

CHF4,200-7,800/month
Per Year
  • Business bank account: CHF 100-300
  • Accounting software: CHF 300-600
  • Professional liability: CHF 500-2,000
  • Professional memberships: CHF 200-500
  • Tax preparation: CHF 800-2,000
  • Social security: 8-12% of income

Monthly Budget

CHF350-650/month
Per Month
  • Before revenue-dependent taxes
  • Before social contributions
  • Before VAT obligations
  • Fixed operational costs only
🛡️Plus 25-35% of gross income for taxes and social security contributions.
Accounting Made Simple

Stop Worrying About the Numbers

Switzerland makes self-employment accessible, but success requires clear financial tracking from day one. Professional invoicing that gets you paid faster. Automated VAT calculation to avoid costly mistakes.

Magic Heidi Invoice Dashboard
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IT Consultant, Bern

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Marie L.

Marketing Consultant, Geneva

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Last updated: January 2026
Sources: Swiss Federal SME Portal, Federal Tax Administration, AHV/AVS Information Center