Starting your own business is no easy task. It is a long process that involves many risks. But starting a business can add value to our economy. It creates new jobs and thus contributes to economic growth. To ensure that your self-employment gets off to a good start, it’s helpful to get an overview of the process.
Step 1: Business Idea and Business Plan
If you want to become self-employed, you first need to have a suitable business idea. The business idea serves as the foundation on which you build your self-employment. The business idea should not only be exciting, but also solve a problem people face and be financially viable. Once you have a business idea, you should flesh it out in the form of a business plan. The business plan should cover the following points:
- Company Goals and Mission Statement
- Description of the Product/Service
- Overview of the Economy (Market and Competition)
- Financial Plan
- Management Overview
Further information and tips on this topic can be found on the federal government’s website.
Step 2: Choosing a Legal Structure for Self-Employment
Choosing a legal structure is the next step on the path to self-employment. Selecting a legal structure is arguably one of the most important cornerstones of building your own business. Depending on the legal structure, you must comply with certain regulations and take into account various tax-related requirements.
Partnerships
In Switzerland, a distinction is made between two different types of companies: partnerships and corporations. The category of partnerships includes:
- the simple partnership
- the general partnership
- the limited partnership
Partnerships are not legal entities. As a result, the partners are jointly and severally liable for the partnership’s business without limitation. Further provisions regarding partnerships can be found in the Swiss Code of Obligations (CO) under Art. 530 et seq.
In Switzerland, the legal form of a sole proprietorship is also unofficially classified as a partnership. Sole proprietorships are popular among tradespeople, doctors, and local businesses. Setting up a sole proprietorship is very simple. You can register the business in the Commercial Register (which is legally required if annual revenue exceeds 100,000 CHF). No minimum capital contribution is required. However, it should be noted that the owner of a sole proprietorship has unlimited liability, which means that they can be held liable with their personal assets.
Corporations
The second category, corporations, consists of:
- the limited liability company (GmbH)
- the corporation (AG)
- the limited partnership with a stock structure
The GmbH and the AG are very popular legal forms for starting a business in Switzerland. Both legal forms acquire legal personality upon entry in the Commercial Register. Specifically, this means that the AG and the GmbH acquire legal capacity upon entry in the Commercial Register. With these corporate structures, liability is limited to the company’s business assets. The owners of the company are not personally liable with their private assets. However, there are cases in which owners may be held liable with their private assets.
The minimum capital requirement distinguishes an AG from a GmbH. To form an AG, you must have CHF 100,000 in share capital. Of this amount, at least CHF 50,000 (or 20% of the share capital) must be paid in. In contrast, the requirement for a GmbH is only CHF 20,000. Additional requirements for establishing a corporation are listed on the federal government’s website.
Step 3: Entry in the Commercial Register
Depending on the legal form you choose, you must register the company with the commercial registry. There are two different options for doing so:
- Registering a business with the federal government through the EASYGOV online portal
- Registration of the company with the canton through the cantonal commercial registry office
It is important to note that certain costs may be incurred when registering a business with the Commercial Register. The amount of these costs varies depending on the company’s legal form. You can find an overview here.
Step 4: Insurance for the Self-Employed
If you become self-employed, you must handle your own social insurance contributions. In Switzerland, self-employed individuals are required to pay contributions to the following insurance programs:
- Old-Age and Survivors’ Insurance (AHV)
- Disability Insurance (IV)
- the Income Replacement Scheme (EO)
Contributions to the AHV, IV, and EO are mandatory, regardless of the legal form. Accident insurance is also mandatory for founders of GmbHs and AGs. If the annual salary exceeds CHF 22,680 (as of 2025), occupational pension insurance is also mandatory. Daily sickness benefit insurance (KTG) is not mandatory in Switzerland. However, it is recommended that you protect both your employees and yourself in the event of illness. For more information on insurance for the self-employed, please refer to our guide.
However, here is what you need to keep in mind if you are self-employed: Even if you have been recognized as self-employed by the relevant compensation office, you still face the following disadvantages: Sole proprietorships do not pay unemployment insurance (ALV) contributions and are therefore not eligible for unemployment benefits. In most cases, you also have no option to take out BVG insurance. Furthermore, with every contract, there is a risk of economic dependence on the client, which may be classified by the AHV as “bogus self-employment.” You can find more information on this topic in the section on bogus self-employment.
Anyone who forms an AG or GmbH still faces the following disadvantages: As the owner of an AG or GmbH, you pay unemployment insurance (ALV) contributions, but you cannot claim ALV benefits as long as you are considered an employee in a position analogous to that of an employer.
Of course, there are other factors to consider when starting a business. Whether to start it as a side business, how to approach marketing, and, more generally, how to successfully become self-employed. These are all questions you should think about in advance and answer for yourself. You can find various tips and guides on the federal government’s website and in our advice articles.
FAQs on Self-Employment in Switzerland
What do I need to consider if I want to start my own business?
Anyone who wants to start their own business should first get an overview of the entire process. It’s a good idea to create a checklist for the startup process.
In which industry is it worth starting your own business?
According to the Federal Statistical Office, most companies are founded in the construction industry and in the field of professional, scientific, and technical services. However, one should not focus solely on the popularity of an industry. Rather, it is important to identify which industry offers a profitable market niche.
How much does it cost to start your own business?
The costs of starting a business vary on a case-by-case basis. Depending on the legal structure, you’ll need more or less startup capital. In addition, there are other administrative expenses (such as the cost of registration in the commercial register), marketing expenses, and product development expenses.
Do I need a business plan to start my own business?
It is strongly recommended that you develop a business plan. The business plan serves as a roadmap for bringing your business idea to life. Among other things, it provides information about a company’s strategy, marketing, and product.
What is the difference between a business plan and a pitch deck?
A pitch deck is a brief presentation of your business idea. It serves as a basis for potential investors and funders to evaluate your business idea and assess its potential. It is also important to outline the potential market and the team structure in a pitch deck.
What is the best legal structure for my business?
The legal structure best suited for your business depends on your available start-up capital and your desired level of liability risk. If you do not want your personal assets to be liable for business transactions resulting from non-negligent or criminal conduct, a GmbH or AG is recommended. However, if you do not have at least 20,000 CHF in start-up capital set aside, a sole proprietorship, a general partnership, or a limited partnership is recommended.
How much startup capital do I need if I want to start my own business?
The amount of startup capital needed to become self-employed depends on the chosen legal structure, the business idea, and how it is implemented. No startup capital is required to form a sole proprietorship. To form a GmbH, you need at least 20,000 CHF. For an AG, on the other hand, the minimum is 50,000 CHF.
As a self-employed person, do I have to pay taxes?
As a self-employed person, you are not exempt from tax liability. The amount of the tax burden and the method of tax collection depend on the chosen legal form. If you choose a legal form such as a partnership, the business’s income is taxed as personal income. This eliminates double taxation, which applies to corporations. With corporations, you pay income tax on your salary and corporate income tax on the company’s profits.
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