Switzerland — Business: Sole Proprietorship

Why this matters

The self-employment permit hurdle catches many aspiring foreign entrepreneurs off guard — unlike an EU/EFTA national, a non-EU/EFTA national on a standard work permit typically cannot simply start freelancing; self-employment usually requires separate cantonal authorization tied to demonstrating a viable, economically beneficial business.

Key facts

• A sole proprietorship has no minimum capital requirement.
• Commercial register entry is required once annual turnover exceeds CHF 100,000.
• Notarisation applies to companies such as an AG or GmbH, not to a sole proprietorship.
• Non-EU/EFTA nationals need the appropriate permit for self-employment; check with the cantonal migration authority.

Steps

1. Confirm self-employment permit eligibility — Non-EU/EFTA nationals should check cantonal migration authority requirements before assuming they can simply start freelancing.
2. Choose a business name — Must include the owner's family name if not registered in the Commercial Register.
3. Register with AHV/social security — Self-employed individuals must register with a cantonal AHV compensation office and pay social contributions directly.
4. Register with the Commercial Register if turnover exceeds CHF 100,000 — Mandatory above this threshold; optional but often beneficial below it.
5. Register for VAT if applicable — Required once turnover exceeds CHF 100,000/year.

Common mistakes

• Assuming a sole proprietorship must register in the commercial register from the start — only above CHF 100,000 turnover.

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