Sole proprietorship in Switzerland

The name and place of business

First you need to choose a name for your business. It must be unique, not already used by another company registered in Switzerland, and it must contain your surname, for example "Consulting SURNAME".

Once the name and place of business are decided, you can register in the cantonal commercial register.

Entry in the commercial register

This entry is mandatory for all sole proprietorships whose turnover exceeds a certain amount.

Dilytics can take care of your registration, online or in person, with the commercial register of the canton of your choice.

Declaration of activity and self-employed status

As the owner of a sole proprietorship, you must file a declaration of activity with the cantonal tax administration.

This declaration states the type of activity you wish to carry out, where your business is established, and other important information.

Your tax obligations

Sole proprietorships are subject to tax obligations in Switzerland. You must register with the cantonal tax administration to obtain a tax identification number.

You will then be responsible for paying income tax on the profits of your business, as well as VAT if you exceed a certain turnover threshold.

The accounts to keep

You must keep accurate accounting records, all the more so if your annual turnover exceeds CHF 500,000. This includes keeping a cash book, invoicing your clients, managing your bank accounts and keeping records of your expenses.

You can keep these records yourself or call on Dilytics to help you.

Social insurance

Owners of sole proprietorships must register with Swiss social insurance. This registration is mandatory for all self-employed workers in Switzerland.

It gives you access to benefits such as health and accident insurance, and lets you manage your pension contributions.

Personal liability

You are responsible for all the debts and obligations of your business. Your liability is unlimited and you can be held personally liable for your business's debts in the event of bankruptcy or financial difficulty.

How it differs from a Sàrl and an SA

A legal entity such as an SA or a Sàrl is separate from its owners. They are not personally liable for the company's debts and obligations beyond their initial investment.

A sole proprietorship is easy to set up and run, but it offers the owner little legal protection. It is important to understand these differences before deciding which suits your situation best.