How to Start a Sole Proprietorship Company in Switzerland (2025 Guide)

A sole proprietorship (German: Einzelfirma) is a one-person business that is not a separate legal entity from the owner. It’s a popular choice for freelancers, consultants, and small service providers in Switzerland.

🟢 Key Advantage: Easy setup, minimal paperwork, and low cost.

🔴 Key Limitation: You’re personally liable for all business debts.

2. Who Can Start a Sole Proprietorship in Switzerland?

To register a sole proprietorship in Switzerland, you must:

• Be a Swiss resident (have a valid residence permit)

• Be at least 18 years old

• Use your own name in the business name (can be combined with a brand name, e.g. John Walt Consulting)

❗ Non-residents cannot register a sole proprietorship. You must live in Switzerland first.

3. Registration Process (Step-by-Step)

❗ You don’t have to pay a salary to your appointed director.

That sounds simple… but there’s a catch:

❗❗❗ A director has full legal authority.

They can sign contracts, represent the company, open bank accounts, and make decisions – even without your direct approval, unless limited.

So while it may feel like just a formality, the legal power of this person is very real.

Step 1 – Choose a business name

Make sure your name is included. Example: J. Smith Photography

Step 2 – Register with AHV/AVS (Social Security)

Once you start earning revenue, register your activity with the social insurance office (AHV/AVS).

Step 3 – (Optional) Register in the Commercial Register

If your yearly revenue exceeds CHF 100,000, you must register in the Swiss Commercial Register (Handelsregister).

Step 4 – Open a bank account

Use your personal or a dedicated business account for transactions.

Step 5 – (Optional) Register for VAT

If you exceed CHF 100,000/year turnover or want to reclaim input tax, you must register for Swiss VAT (MWST/TVA/IVA).

4. What Are the Costs?

5. Documents You May Need

• Copy of your Swiss residence permit

• Your AVS/AHV number

• Proof of activity (website, invoices, or contracts)

• Business name and description

1. What Is a Sole Proprietorship (Einzelfirma)?

6. Tax and Social Contributions

As a sole proprietor:

• You’ll pay income tax on your total profit

• You must pay social contributions (AHV/AVS, etc.)

• You are not considered an employee of your own business

7. When NOT to Use a Sole Proprietorship

Consider a GmbH or AG if:

• You want limited liability

• You plan to have partners or investors

• You want a more credible structure for clients or contracts

Final Thoughts

A sole proprietorship is the fastest way to go legal in Switzerland — ideal if you want to test an idea, freelance, or build a small solo business.

✨ Bonus: We’ve created a free step-by-step checklist to help you start faster – get it here 👇

👉 Download the Free Business Starter Kit