Starting a sole proprietorship in Switzerland sounds like a lot of bureaucracy. In reality, it can be set up in a few days and is the cheapest legal form available. No minimum capital, no notary, no articles of association.
Complete Cost Overview 2026
| Cost Item | Amount | Mandatory? |
|---|---|---|
| Formation itself | CHF 0 | - |
| Commercial register entry | approx. CHF 120-150 | From CHF 100,000 revenue |
| Professional liability insurance | CHF 300-1,500/year | Industry-dependent |
| Business account | CHF 0-15/month | Recommended |
| AHV minimum contribution | CHF 530/year | Yes |
AHV Registration: The First Official Step
Registration with the AHV compensation office is the most important step. Without confirmed AHV status, you're not officially recognised as self-employed. AHV contribution rate for self-employed 2026: 10.6% of net income. Minimum contribution: CHF 530/year. Processing time: 3-6 months.
VAT Obligation: When Must You Register?
VAT is mandatory from CHF 100,000 annual revenue (worldwide). Standard rate 2026: 8.1%. Voluntary registration below the threshold makes sense if you can claim significant input tax.
Self-Employed as a Foreigner in Switzerland
- EU/EFTA citizens: With a B permit, you can become self-employed without restrictions
- Non-EU/EFTA citizens: Very difficult - typically need a C permit
- Cross-border commuters (G permit): Self-employment possible under certain conditions
Step by Step: Setting Up
- Business idea and plan - 1-2 pages, needed for AHV registration
- Choose business name - must contain your surname
- Contact AHV compensation office - register as self-employed
- Open business account - separate private and business finances from day one
- Check VAT - register if expecting over CHF 100,000 revenue
- Commercial register - mandatory above CHF 100,000; voluntary entry protects your name
- Arrange insurance - professional liability, accident insurance
Common Mistakes
- Mixing personal and business finances - open a separate account from day one
- Forgetting AHV registration - contributions are collected retroactively with interest
- Recognising VAT obligation too late - 30 days to register once you hit CHF 100,000
- Underestimating tax burden - set aside 20-30% of every income for taxes
- No professional liability insurance - one mistake can be expensive with unlimited personal liability
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Founding Guide Switzerland
Our guide walks you through every step: from AHV registration to your first invoice. Including checklist and cost overview.