Key points at a glance
- Register as self-employed with your AHV (old-age and survivors' insurance) compensation office (Ausgleichskasse) - it decides whether you are recognized as self-employed.
- You must register in the commercial register (Handelsregister) once your sole proprietorship generates at least CHF 100'000 in revenue a year (Art. 931 para. 1 of the Swiss Code of Obligations, CO); you can register voluntarily before that.
- Your business name must contain your surname (Art. 945 CO).
- You become liable for VAT (MWST) once you reach CHF 100'000 in revenue from taxable supplies (Art. 10 para. 2 let. a of the Value Added Tax Act, VATA).
- You're liable with all your personal assets - which is why business liability insurance and a clear separation of private and business finances are worth it.
- Starting up costs almost nothing: AHV registration, the UID and VAT registration are free; only the commercial register entry carries a small official fee. You don't need paid "incorporation" or "registration" services.
Sole proprietorship, GmbH or corporation (AG)?
A sole proprietorship belongs to you alone. It requires no minimum capital and comes into existence as soon as you start working for yourself. The price: you are personally liable without limit for the business's debts, and the profit is taxed together with your other income. Still, for most people starting out on their own - in the trades, consulting, design, IT or therapy - it's the right way to begin. A limited liability company (GmbH) makes more sense if the liability risk is high or several people are involved.
1. Registering with the AHV compensation office
The most important first step: register as self-employed with your cantonal compensation office (or your industry association's compensation office). The office checks whether you are genuinely self-employed - for example, whether you work in your own name and at your own risk, have several clients and make your own investments. This recognition matters: many clients ask for it before giving you work, so that they aren't treated as your employer.
As a self-employed person, you pay the AHV/IV/EO contributions (old-age and survivors', disability and loss-of-earnings insurance) entirely yourself: at most 10% of your income, on a sliding scale for lower incomes, and at least CHF 530 a year (2026 figures, AHV/IV leaflet 2.02). The office's administrative costs come on top. The office first charges provisional contributions and settles the final amount later, based on your final tax assessment - so set money aside for this from the start.
2. Commercial register and business name
You must register your sole proprietorship in the commercial register once it has generated revenue of at least CHF 100'000 in the last financial year (Art. 931 para. 1 CO; Art. 36 of the Commercial Register Ordinance, HRegV, in German). Members of the liberal professions and farmers are exempt unless they run their business on commercial lines. You can register voluntarily at any time (Art. 931 para. 3 CO) - this builds trust and protects your business name at your registered place of business (Art. 946 CO).
You have less freedom in choosing a name than with a GmbH: the core of the business name must be your surname, with or without your first name (Art. 945 CO). You can check for free whether a name is already taken in the Central Business Name Index Zefix. Additions are allowed as long as they are true and don't suggest a company: "Lea Muster Grafik" is fine, "Muster Grafik GmbH" is not.
Example: starting out as a graphic designer
Lea sets up on her own as "Lea Muster Grafik". She registers with the compensation office and encloses her first project and two inquiries from other clients so that her self-employment is recognized. With expected revenue of around CHF 70'000, she doesn't have to register in the commercial register or for VAT - but she registers in the commercial register voluntarily because a larger client wants her to. She opens a separate business account and takes out business liability insurance.
3. UID and VAT
Every business in Switzerland is identified by a UID (business identification number, Unternehmens-Identifikationsnummer), for example CHE-123.456.789. You receive it automatically, at the latest when you register as self-employed with the AHV compensation office, register in the commercial register or register for VAT - these offices report you to the UID register. You can look up your number publicly in the UID register.
VAT becomes relevant as soon as you generate CHF 100'000 in revenue from taxable supplies within a year (Art. 10 para. 2 let. a VATA). You then register online with the Federal Tax Administration FTA (ESTV) within 30 days (Art. 66 VATA). Below that threshold, you are exempt and may not show VAT on your invoices - unless you voluntarily waive the exemption (Art. 11 VATA), which can pay off if you have a lot of input tax. More on this in the article Receipts and VAT made easy.
4. Insurance and retirement provision
- Business liability insurance: not mandatory (except in certain professions), but strongly recommended - you're liable with your personal assets.
- Accident: As a self-employed person, you aren't covered by mandatory accident insurance under the Accident Insurance Act (UVG). You can take out voluntary cover (Art. 4 UVG, in German), for example with Suva's insurance for self-employed people or a private insurer, or cover accidents through your health insurance.
- Daily sickness allowance: Without daily allowance insurance, you have no income during a longer illness. Decide early from which day it should start paying.
- Retirement provision: Occupational pension cover is voluntary for the self-employed. Without a pension fund (Pensionskasse), in 2026 you can pay up to 20% of your net earned income, at most CHF 36'288, into pillar 3a and deduct it from your taxable income.
5. Account, bookkeeping and your first invoice
A separate business account isn't mandatory, but it makes bookkeeping and your tax return much easier. Up to CHF 500'000 in revenue, simple accounting of income, expenses and assets is enough (Art. 957 para. 2 CO) - and you keep your receipts for 10 years (Art. 958f CO).
Before your first invoice goes out, it's worth getting your branding in order: letterhead with logo, bank details with a QR-bill payment part and clear payment terms. How to set up quotes and invoices correctly is covered in the article From quote to paid invoice.
6. What it costs to start up - and what to watch out for
Starting a sole proprietorship costs almost nothing. You don't need start-up capital, a notary or paid advice:
- Free: registering with the AHV compensation office, the UID, VAT registration and searches in Zefix and the UID register.
- Small official fee: Only the commercial register entry costs anything - the basic fee for registering a new sole proprietorship is CHF 80 throughout Switzerland (Commercial Register Fees Ordinance, annex, in German), plus possibly a few francs to have your signature certified. The cantonal commercial register office sends you the invoice.
Beware of paid offers: Shortly after their entry is published in the Swiss Official Gazette of Commerce (SHAB), many new businesses receive letters and emails that look official - with a Swiss cross, words like "register" or "trade" and a payment slip for several hundred francs. These aren't invoices from an authority but offers from private companies for worthless directory listings. If you sign or pay, you often enter into a contract for several years. The State Secretariat for Economic Affairs (SECO) explicitly warns about this directory scam (Adressbuchschwindel) (in German); such forms and unsolicited invoices are unfair practices under the Unfair Competition Act (Art. 3 para. 1 let. p and q UCA).
- The only genuine invoice for the commercial register entry comes from the cantonal commercial register office. You don't need any further listings in private registers.
- Don't sign anything you haven't read and fully understood.
- If you've already signed, challenge the contract by registered letter on the grounds of error and fraud; if you receive a payment order (Zahlungsbefehl), you can file an objection (Rechtsvorschlag) within 10 days.
- You don't need a paid service for starting up, either: you can complete all registrations directly with the offices listed below, many of them online via EasyGov.swiss, the federal government's free online desk for businesses.
All the offices at a glance
| What | Where | Cost |
|---|---|---|
| Registration as self-employed (AHV/IV/EO) | Your cantonal compensation office · Leaflet 2.02 | free |
| Check business name | Zefix - Central Business Name Index | free |
| Commercial register entry | Your cantonal commercial register office (see your canton's website) or online via EasyGov.swiss | official fee |
| Look up UID | Federal UID register | free |
| VAT registration (from CHF 100'000 in revenue) | FTA: value added tax · FTA portal | free |
| Accident insurance for the self-employed (voluntary) | Suva insurance for self-employed people (in German) or a private insurer | premium |
| Federal overview and checklists | SECO: self-employment (in German) · Federal SME portal | free |
| Warning about fake invoices | SECO: directory scam | - |
Permits for certain industries (for example hospitality, healthcare or construction) are issued by the canton or municipality - ask your municipality whether you need one for your line of work.
How it works in Easly
After you sign up, a setup wizard guides you step by step through everything you need for your first quote and invoice - you can stop at any time and pick up later:
- Company & bank: business name, legal form, address and canton, plus your UID - Easly validates the check digit and flags typos. Once you enter your IBAN, the QR-bill payment part is ready to go; Easly recognizes a QR-IBAN automatically.
- Appearance: upload your logo and choose an accent color - the logo then appears on every quote and invoice, and the browser icon can be generated from it if you like.
- VAT: Not yet liable for VAT? Then leave the box unchecked, and Easly adds the correct note to your invoices. Later, you switch on VAT with your rate and method.
- Email: Microsoft 365 or your existing mailbox via SMTP and IMAP - with a connection test right in the wizard.
- At the end, a checklist shows you what's ready and what's still missing. You can reopen the wizard at any time under "Settings → Company".
Frequently asked questions
Do I have to register my sole proprietorship in the commercial register?
Yes, once it has generated revenue of at least CHF 100'000 in the last financial year (Art. 931 para. 1 CO). Below that, registration is voluntary. Members of the liberal professions are exempt unless they run their business on commercial lines.
What can I call my sole proprietorship?
The name must essentially consist of your surname, with or without your first name (Art. 945 CO). Additions like "Grafik" or "Elektro" are allowed as long as they're accurate and don't sound like a company such as a GmbH or AG.
How much does it cost to start a sole proprietorship?
Almost nothing: AHV registration, the UID and VAT registration are free. Only the commercial register entry has an official fee: the basic fee for a sole proprietorship is CHF 80 throughout Switzerland. Letters from private companies asking for money for a "register" after your entry are not official invoices - don't pay them.
Does my sole proprietorship need a UID?
You don't have to apply for one: the compensation office, the commercial register office or the FTA reports you to the UID register. It's only mandatory on invoices if you show VAT (Art. 26 VATA). Easly validates the check digit of any UID you enter.
Do I need accident insurance for my sole proprietorship?
Not for yourself - self-employed people aren't subject to mandatory UVG insurance, but they can take out voluntary cover (Art. 4 UVG). If you hire someone, you must insure that person against accidents; more on this in the article Your first employee.
Information as of: see above. Sources: Swiss Code of Obligations (Art. 931, 945, 946, 957 and 958f CO), Commercial Register Ordinance (Art. 36 HRegV), Value Added Tax Act (Art. 10, 11, 26 and 66 VATA), Accident Insurance Act (Art. 4 UVG), Unfair Competition Act (Art. 3 UCA), AHV/IV leaflet 2.02, Commercial Register Fees Ordinance (GebV-HReg) (in German), SECO leaflet on the directory scam. Cantonal compensation offices and commercial register offices may follow different procedures. This article is not a substitute for advice from an accountant (Treuhand), the compensation office or the commercial register office.