Setting up a sole proprietorship in Switzerland: steps, costs, insurance

The sole proprietorship (Einzelfirma, legally Einzelunternehmen) is the simplest legal form in Switzerland. It belongs to one person, needs no starting capital and exists as soon as you work for yourself. There is no founding deed at a notary.

You and your business are legally the same person. So you are liable with all your private assets, and the profit is taxed together with your other income. For coaches, therapists, teachers and others starting on their own, it is the usual choice.

The most important registration is with the AHV compensation office of your canton or your professional association. It checks whether you count as self-employed, for example because you work for several clients and carry your own risk. Only with this recognition are you self-employed for AHV purposes.

Everything else depends on your turnover and profession. The table shows what is always needed and what comes later. On EasyGov, the federal online portal, you can do most registrations in one place; the portal itself is free.

Very little. Without a commercial register entry, setting up costs nothing. With an entry, the commercial register office charges a base fee of CHF 80 for the new entry under the federal fee ordinance; small additional fees may apply.

The running costs are mainly AHV contributions, your insurance and, if you use one, an accountant. You need no starting capital.

The name must contain your surname, with or without first names (Article 945 Code of Obligations). Additions describing your activity are allowed as long as they are true and not misleading, for example «Praxis Meier Shiatsu» or «Anna Keller Coaching».

The name is only protected once it is in the commercial register, and only in the same locality. Check the central business name index (zefix.ch) first to see whether a similar name exists.

As a self-employed person you pay all AHV, IV and EO contributions yourself: 10% of income, less for incomes below CHF 60,500, and at least CHF 530 a year (2026).

You are not insured against unemployment, and accident insurance is not mandatory. Include accident cover in your health insurance. Voluntary accident insurance under the UVG also covers lost earnings. Daily sickness benefit insurance is voluntary as well.

An occupational pension fund is voluntary for the self-employed. Without one, you can pay 20% of your earned income, up to CHF 36,288 a year (2026), into pillar 3a and deduct it from your taxes.

The profit of your sole proprietorship is part of your income. You declare it in your normal tax return, with the details of your self-employment. Business expenses are deducted from the profit.

You only become liable for VAT from CHF 100,000 annual turnover from taxable services. Some services are excluded from VAT, such as medical treatment by professionals with a licence to practise and many kinds of teaching.

Below CHF 500,000 turnover, simple records of income, expenses and assets are enough (Article 957 Code of Obligations). Keep your records for 10 years.

A sole proprietorship is quick, cheap and simple to run. The downside: you are personally liable for all of the business's debts, and above a certain profit you often pay more tax and contributions than with a GmbH (limited liability company).

A GmbH needs at least CHF 20,000 share capital, a notarised deed and full accounts with annual financial statements. In return, only the company is liable. Many start as a sole proprietorship and switch later, when turnover or risk grows.

Which form is cheaper for tax depends on the canton and your profit. An accountant can help with this comparison.

Once your business is registered, what matters is that clients can reach and pay you easily. With Zitli, they book on your booking page, at any hour, and your canton's public holidays are blocked.

With Zitli Pro, they pay at booking with TWINT or by card, or Zitli sends a Swiss QR-bill after the appointment. The free plan has no time limit; try Pro free for 14 days.