{"id":8468,"date":"2025-05-12T07:20:47","date_gmt":"2025-05-12T05:20:47","guid":{"rendered":"https:\/\/my-swiss-company.com\/?p=8468"},"modified":"2026-06-24T14:42:49","modified_gmt":"2026-06-24T12:42:49","slug":"set-up-a-sole-proprietorship-in-switzerland","status":"publish","type":"post","link":"https:\/\/my-swiss-company.com\/en\/set-up-a-sole-proprietorship-in-switzerland\/","title":{"rendered":"Setting Up a Sole Proprietorship in Switzerland: Steps, Costs and Tax"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.27.3&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.27.3&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.27.3&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_text _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<div class=\"intro-box\">\n<p>A sole proprietorship (<em>raison individuelle<\/em> \/ <em>Einzelfirma<\/em>) is the simplest and cheapest way to go into business alone in Switzerland: <strong>no minimum capital<\/strong>, no notary, and a setup that is sometimes free. The trade-off is that you and the business are one and the same person in law \u2014 your <strong>liability is unlimited<\/strong> on your private assets. Your business name must contain <strong>your surname<\/strong>, and entry in the commercial register is only mandatory once turnover passes <strong>CHF 100,000<\/strong>. The one step nobody can skip is having your <strong>self-employed status recognised<\/strong> by an OASI\/AVS compensation office. This guide covers who can set one up, the steps, costs, accounting and tax.<\/p>\n<\/div>\n<div class=\"table-of-contents\">\n<h3>Contents<\/h3>\n<ol>\n<li><a href=\"#definition\">What is a sole proprietorship<\/a><\/li>\n<li><a href=\"#who\">Who can set one up (permits)<\/a><\/li>\n<li><a href=\"#pros-cons\">Advantages and drawbacks<\/a><\/li>\n<li><a href=\"#steps\">How to set up a sole proprietorship<\/a><\/li>\n<li><a href=\"#costs\">Costs and timeline<\/a><\/li>\n<li><a href=\"#tax\">Accounting and tax<\/a><\/li>\n<li><a href=\"#comparison\">Sole proprietorship, GmbH or AG<\/a><\/li>\n<li><a href=\"#faq\">FAQ<\/a><\/li>\n<li><a href=\"#sources\">Sources<\/a><\/li>\n<\/ol>\n<\/div>\n<h2 id=\"definition\">What is a sole proprietorship<\/h2>\n<p>A sole proprietorship is a business run by a single individual, with <strong>no legal personality of its own<\/strong>. In law, the owner and the business are one \u2014 which is exactly what makes it so simple to start, and also what puts your private assets on the line.<\/p>\n<ul>\n<li><strong>Owner<\/strong>: one individual.<\/li>\n<li><strong>Liability<\/strong>: unlimited, on your private assets.<\/li>\n<li><strong>Capital<\/strong>: none required.<\/li>\n<li><strong>Legal basis<\/strong>: Code of Obligations, art. 945 ff.<\/li>\n<\/ul>\n<p>It is the natural choice for the self-employed: consultants, freelancers, the liberal professions, e-commerce sellers and tradespeople. To see it next to the other structures, read our guide to the <a href=\"https:\/\/my-swiss-company.com\/en\/legal-forms-of-business-in-switzerland-everything-you-need-to-know-to-choose-the-best-option\/\">legal forms of business in Switzerland<\/a>.<\/p>\n<h2 id=\"who\">Who can set one up (permits)<\/h2>\n<p>Any adult can run a sole proprietorship, provided they have the right to be self-employed in Switzerland. Nationality changes the paperwork, not the principle.<\/p>\n<ul>\n<li><strong>Swiss nationals and EU\/EFTA citizens<\/strong>: free to set up.<\/li>\n<li><strong>Non-EU nationals<\/strong>: need a permit that allows self-employment \u2014 a <strong>C permit<\/strong>, or a <strong>B permit<\/strong> with the right authorisation.<\/li>\n<li><strong>Cross-border commuters<\/strong>: can run a sole proprietorship under conditions (a <strong>G permit<\/strong> and activity genuinely carried out in Switzerland); the setup is assessed case by case.<\/li>\n<\/ul>\n<div class=\"important-box\">\n<h4>Important<\/h4>\n<p>Unlike a GmbH or an AG, a sole proprietorship assumes the owner <strong>carries out the activity in Switzerland themselves<\/strong> \u2014 it cannot be run &#8220;from a distance&#8221; through a resident director. An entrepreneur who wants to own a Swiss structure without working in it should look at a <a href=\"https:\/\/my-swiss-company.com\/en\/fiduciary-in-switzerland-everything-you-need-to-know-about-setting-up-a-limited-liability-company-sarl-gmbh-2\/\">GmbH<\/a> instead.<\/p>\n<\/div>\n<h2 id=\"pros-cons\">Advantages and drawbacks<\/h2>\n<p>The sole proprietorship trades legal protection for sheer simplicity. Worth weighing both sides before you start.<\/p>\n<div class=\"msc-table-wrap\">\n<table class=\"msc-table\">\n<thead>\n<tr>\n<th>Advantages<\/th>\n<th>Drawbacks<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>No minimum capital, cheap and fast to start<\/td>\n<td>Unlimited personal liability<\/td>\n<\/tr>\n<tr>\n<td>Few formalities \u2014 no notary, no articles<\/td>\n<td>Your surname must appear in the business name<\/td>\n<\/tr>\n<tr>\n<td>Profits taxed once, as personal income<\/td>\n<td>Harder to bring in partners or investors<\/td>\n<\/tr>\n<tr>\n<td>Simplified accounting below CHF 500,000<\/td>\n<td>No unemployment insurance for the owner<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"msc-caption\">The sole proprietorship suits solo, lower-risk activities; a GmbH becomes worthwhile once liability or growth matter.<\/p>\n<\/div>\n<h2 id=\"steps\">How to set up a sole proprietorship<\/h2>\n<p>There is no incorporation as such \u2014 you simply start trading and put a few registrations in place. In practice it comes down to five steps.<\/p>\n<h3>1. Choose your business name<\/h3>\n<p>The name must contain your <strong>surname<\/strong>, with or without an activity descriptor \u2014 &#8220;Anna M\u00fcller&#8221; or &#8220;Anna M\u00fcller Consulting&#8221; both work. You can check what is already taken on the federal <a href=\"https:\/\/www.zefix.ch\/en\/search\/entity\/welcome\" target=\"_blank\" rel=\"noopener\">Zefix<\/a> register.<\/p>\n<h3>2. Register your self-employed status with an OASI\/AVS office<\/h3>\n<p>This is the step that makes you official. You apply to a cantonal <strong>OASI\/AVS compensation office<\/strong> to be recognised as self-employed, backing it up with evidence that you really are \u2014 typically <strong>invoices or contracts<\/strong> with several clients. Recognition is what lets you pay self-employed social contributions rather than be treated as an employee.<\/p>\n<h3>3. Register in the commercial register (if required)<\/h3>\n<p>Entry is <strong>mandatory once your turnover passes CHF 100,000<\/strong> a year. Below that it is optional \u2014 but registering voluntarily is usually worth it: it adds credibility and makes opening a business bank account easier. Simple cases can be filed online via <a href=\"https:\/\/www.easygov.swiss\/\" target=\"_blank\" rel=\"noopener\">EasyGov<\/a>.<\/p>\n<h3>4. Register for VAT (if required)<\/h3>\n<p>You must register for VAT once annual turnover exceeds <strong>CHF 100,000<\/strong>. Below that you are exempt, though voluntary registration can make sense if you want to reclaim input VAT.<\/p>\n<h3>5. Set up accounting and insurance<\/h3>\n<p>Put in place bookkeeping suited to your size (see below), and sort out your own cover \u2014 occupational pension and daily-allowance insurance are optional for the self-employed, but worth a hard look, since there is no unemployment insurance.<\/p>\n<h2 id=\"costs\">Costs and timeline<\/h2>\n<p>This is the cheapest way to start a business in Switzerland. There is <strong>no capital to deposit<\/strong>, and if you stay under the registration threshold and file yourself, the cost can be close to zero. The main out-of-pocket item is the commercial register entry, around <strong>CHF 120<\/strong>.<\/p>\n<ul>\n<li><strong>Capital<\/strong>: none.<\/li>\n<li><strong>Commercial register entry<\/strong>: \u2248 CHF 120 (when registered).<\/li>\n<li><strong>Timeline<\/strong>: a few days to a few weeks, mostly driven by the OASI\/AVS recognition.<\/li>\n<\/ul>\n<h2 id=\"tax\">Accounting and tax<\/h2>\n<p>A sole proprietorship is <strong>taxed transparently<\/strong>: there is no separate company tax. The profit is added to your personal income and taxed at the ordinary progressive rates, at federal, cantonal and communal level. You also pay <strong>self-employed OASI\/AVS contributions<\/strong> on that profit.<\/p>\n<p>Accounting scales with your size (CO art. 957):<\/p>\n<ul>\n<li><strong>Below CHF 500,000<\/strong> turnover: simplified accounts \u2014 a record of income, expenses and assets is enough.<\/li>\n<li><strong>CHF 500,000 or more<\/strong>: full double-entry bookkeeping, with annual accounts.<\/li>\n<\/ul>\n<p>Because profit is taxed as personal income, the sole proprietorship is often the lighter option at modest earnings \u2014 but as profit grows, a <a href=\"https:\/\/my-swiss-company.com\/en\/fiduciary-in-switzerland-everything-you-need-to-know-about-setting-up-a-limited-liability-company-sarl-gmbh-2\/\">GmbH<\/a> can become more efficient and bring the liability shield with it.<\/p>\n<h2 id=\"comparison\">Sole proprietorship, GmbH or AG<\/h2>\n<p>The choice turns on liability, capital and how you intend to grow. The sole proprietorship is the simplest entry point; the capital companies cost more but protect your private assets.<\/p>\n<div class=\"msc-table-wrap\">\n<table class=\"msc-table\">\n<thead>\n<tr>\n<th>Criterion<\/th>\n<th>Sole proprietorship<\/th>\n<th>GmbH (LLC)<\/th>\n<th>AG (Ltd)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Minimum capital<\/td>\n<td>None<\/td>\n<td>CHF 20,000<\/td>\n<td>CHF 100,000 (50,000 paid in)<\/td>\n<\/tr>\n<tr>\n<td>Liability<\/td>\n<td>Unlimited<\/td>\n<td>Limited to capital<\/td>\n<td>Limited to capital<\/td>\n<\/tr>\n<tr>\n<td>Legal personality<\/td>\n<td>No<\/td>\n<td>Yes<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Taxation<\/td>\n<td>Personal income<\/td>\n<td>Corporate<\/td>\n<td>Corporate<\/td>\n<\/tr>\n<tr>\n<td>Best for<\/td>\n<td>Starting solo, low risk<\/td>\n<td>SMEs<\/td>\n<td>Larger projects<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"msc-caption\">Sources: CO art. 945 ff. (sole prop.), 772 ff. (GmbH), 620 ff. (AG).<\/p>\n<\/div>\n<p>Many entrepreneurs start as a sole proprietorship and <strong>convert into a GmbH<\/strong> once the activity proves itself \u2014 a clean, tax-neutral step when it is planned. For the full picture, see our pillar guide to <a href=\"https:\/\/my-swiss-company.com\/en\/company-formation-switzerland\/\">company formation in Switzerland<\/a>.<\/p>\n<section id=\"faq\">\n<h2>FAQ: sole proprietorship in Switzerland<\/h2>\n<div class=\"question\">\n<h3>Can a foreigner set up a sole proprietorship in Switzerland?<\/h3>\n<p>Yes, with the right to be self-employed. Swiss nationals and EU\/EFTA citizens can set up freely; non-EU nationals need a C permit (or a B permit with authorisation); cross-border commuters need a G permit and must genuinely carry out the activity in Switzerland. The owner has to run the business themselves.<\/p>\n<\/p><\/div>\n<div class=\"question\">\n<h3>Do I have to register a sole proprietorship in the commercial register?<\/h3>\n<p>Only once your annual turnover exceeds CHF 100,000. Below that, registration is voluntary \u2014 but it is usually recommended, as it adds credibility and makes it easier to open a business bank account.<\/p>\n<\/p><\/div>\n<div class=\"question\">\n<h3>How is a sole proprietorship taxed in Switzerland?<\/h3>\n<p>Transparently: there is no separate company tax. The profit is added to your personal income and taxed at ordinary progressive rates at federal, cantonal and communal level, and you pay self-employed OASI\/AVS contributions on it.<\/p>\n<\/p><\/div>\n<div class=\"question\">\n<h3>What are the disadvantages of a sole proprietorship?<\/h3>\n<p>The main one is unlimited personal liability \u2014 your private assets answer for the business debts. You also have to put your surname in the business name, you cannot easily bring in partners, and there is no unemployment insurance for the owner. For higher-risk or growing activities, a GmbH is safer.<\/p>\n<\/p><\/div>\n<div class=\"question\">\n<h3>How much does it cost to set up a sole proprietorship?<\/h3>\n<p>Very little. There is no capital to deposit, and if you stay below the registration threshold and file yourself it can be almost free. The main cost is the commercial register entry, around CHF 120 when registration applies.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"sources\">\n<h2>Sources<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.fedlex.admin.ch\/eli\/cc\/27\/317_321_377\/en\" target=\"_blank\" rel=\"noopener\">Swiss Code of Obligations (CO), art. 945 ff. and 957 \u2014 Fedlex<\/a><\/li>\n<li><a href=\"https:\/\/www.kmu.admin.ch\/kmu\/en\/home\/concrete-know-how\/setting-up-sme\/les-differentes-formes-juridiques\/sole-proprietorships.html\" target=\"_blank\" rel=\"noopener\">Sole proprietorships \u2014 SME Portal (SECO)<\/a><\/li>\n<li><a href=\"https:\/\/www.easygov.swiss\/\" target=\"_blank\" rel=\"noopener\">EasyGov.swiss \u2014 online business registration<\/a><\/li>\n<li><a href=\"https:\/\/www.estv.admin.ch\/en\/\" target=\"_blank\" rel=\"noopener\">Swiss Federal Tax Administration (FTA)<\/a><\/li>\n<\/ul>\n<\/section>\n<div class=\"conclusion-box\">\n<h2>Conclusion<\/h2>\n<p>The sole proprietorship is the fastest, cheapest way to start out alone in Switzerland: no capital, few formalities, and a profit taxed simply as your personal income. The price of that simplicity is unlimited liability and a name tied to your own \u2014 which is why most founders move to a GmbH once the activity grows and the risk starts to matter. The one step to get right from day one is having your self-employed status recognised by an OASI\/AVS office.<\/p>\n<p>My Swiss Company SA, a Swiss corporate services provider present in Geneva, Lucerne and Zug and active in 20+ countries, helps you set up and run your activity \u2014 from self-employed registration to accounting and the move to a GmbH when the time comes. <a href=\"https:\/\/my-swiss-company.com\/en\/our-services\/swiss-company-formation-services\/\">Discover our company formation services<\/a> or <a href=\"https:\/\/my-swiss-company.com\/en\/contact\/\">contact us for an initial consultation<\/a>.<\/p>\n<\/div>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Starting a sole proprietorship in Switzerland is easy, fast, and requires no minimum capital. Ideal for freelancers and self-employed individuals, it allows full control without incorporating a company. My Swiss Company SA offers full support for AVS, VAT, commercial registration, and accounting.<\/p>\n","protected":false},"author":3,"featured_media":8458,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[51],"class_list":["post-8468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-misc","tag-en"],"_links":{"self":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts\/8468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/comments?post=8468"}],"version-history":[{"count":3,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts\/8468\/revisions"}],"predecessor-version":[{"id":12120,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/posts\/8468\/revisions\/12120"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/media\/8458"}],"wp:attachment":[{"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/media?parent=8468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/categories?post=8468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/my-swiss-company.com\/en\/wp-json\/wp\/v2\/tags?post=8468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}