Forming a sole proprietorship: guide
A sole proprietorship is the fastest and cheapest way to become self-employed in Switzerland, no share capital, formation from around CHF 550. Here is how it works.
How it works
Define the name and activity
Choose a company name that includes your surname and describe your business activity. No minimum capital is required.
Register with the AHV compensation office
Apply to the AHV compensation office to have your self-employed status recognised. This is the key step that makes you officially self-employed.
Register for VAT if needed
If your annual turnover reaches CHF 100'000, register for VAT with the Federal Tax Administration (ESTV).
Enter in the commercial register
Registration is voluntary below CHF 100'000 turnover but mandatory once you reach that threshold. It also lends credibility to your business.
Arrange insurance and bookkeeping
Set up the relevant insurance cover and a simple bookkeeping system to track income and expenses from the start.
Answered in short
Do I need capital to start a sole proprietorship?
No. Unlike a GmbH or AG, a sole proprietorship requires no minimum capital. You can start with whatever funds your activity needs.
When do I have to enter the commercial register?
Registration becomes mandatory once your annual turnover reaches CHF 100'000. Below that, it is optional but often worthwhile for credibility.