GmbH or sole proprietorship?
The two most common legal forms for getting started in Switzerland — compared on capital, liability and cost.
A sole proprietorship needs no share capital and is registered for around CHF 550, but you are personally liable with your private assets. A GmbH requires CHF 20'000 in capital and costs roughly CHF 2'500 to set up, in exchange for limited liability and a clear separation between you and the company.
The key differences
| Criterion | Einzelfirma | GmbH |
|---|---|---|
| Minimum capital | — | CHF 20'000 |
| Liability | Private assets are liable | limited to the company's capital |
| Formation costs at Planet | CHF 550 | CHF 2'500 |
| Commercial register | mandatory from CHF 100'000 turnover | mandatory |
| Taxation | together with the private individual | taxed separately |
| Social insurance | self-employed (AHV registration) | employed (AHV/BVG/UVG) |
If you are testing an idea on a small budget, a sole proprietorship is the faster and cheaper start. As soon as turnover, risk or staff grow, the limited liability of a GmbH is usually worth the extra capital and cost.
Answered in short
Can I convert a sole proprietorship into a GmbH later?
Yes. Many founders start as a sole proprietorship and switch to a GmbH once the business is established. The conversion is straightforward, and we handle the transfer of the business into the new company for you.
Do I really need CHF 20'000 in cash for a GmbH?
The CHF 20'000 must be fully paid into a blocked capital account at formation, but it is released to the company afterwards and can be used as working capital. It is not a fee. It stays in your business.