By Payrollplus, 17. May 2022
Anyone who wants to become self-employed in Switzerland must first deal with how to register their self-employment. We have compiled everything you need to know about this topic here.
After starting your activity, you should register your self-employment with the AHV (Old Age and Survivors’ Insurance). If you have established your self-employment in the form of a company formation (i.e., an entry in the commercial register), you must register with the AHV at the time of formation.
Registration of self-employment before starting the activity is not possible. The reason is that the fund needs certain invoices, receipts, and contracts at the time of registration. The federal government generally recommends registering with the compensation office in the first months of self-employment. This way, you receive social security faster and benefit from the protection of social insurance.
Location and Procedure for Self-Employment Registration
Self-employed individuals who are members of a professional association can register with the responsible association compensation fund. If you are not in a professional association, you must register with the cantonal compensation office. The cantonal compensation office must be the one in the canton where the business headquarters is located. You can find an overview of the cantonal social insurance institutions or compensation offices here. Self-employed individuals can register via the form on the respective SVA websites.
The Old Age and Survivors’ Insurance (AHV), Disability Insurance (IV), and Income Compensation Scheme (EO) distinguish between two different categories: self-employed and employed persons. Not every self-employment is considered self-employment: Each application for self-employment must be reviewed by the responsible cantonal compensation office.
According to the federal government, the following requirements must be met to be classified as self-employed:
Generally, self-employed persons can decide freely and independently about their working methods and work activities and are not subject to any authority to issue directives. They usually have their own company and work for multiple clients.
The compensation office regularly checks whether the activity of the self-employed person meets the aforementioned requirements. A certificate of self-employment once issued does not serve as a general power of attorney for all further contracts.
If the requirements are no longer met because the self-employed person generates more than 50% of their annual income with one contract, it can no longer be considered self-employment, as there is an economic dependency of the contractor on the client. This is then interpreted as false self-employment. More information on this topic can be found in our article on false self-employment.
Self-Employed Professions and Activities Requiring Approval
No specific requirements are necessary for non-regulated activities. Certain professions and activities are regulated and subject to permit requirements. For regulated professions, you need special training or must be able to demonstrate solid professional experience in this specific area. On the federal government’s website, you can find out which professions are regulated and whether a permit must be applied for.
Anyone who is employed in Switzerland must pay contributions to the AHV, IV, and EO. This applies regardless of whether you are self-employed or employed. The contribution obligation begins on January 1 after your 17th birthday. As soon as you give up your gainful employment, the contribution obligation ceases.
The contribution obligation for self-employed persons is a total of 10% of income. The amount consists of contributions to the AHV, IV, and EO. These are the individual percentages:
If the income is below a limit of CHF 57,400, a decreasing contribution scale applies.
In addition to contributions to the AHV, IV, and EO, self-employed persons must also pay contributions to the Family Compensation Fund (FAK). Family allowances vary depending on the canton. The amount of the FAK can be found here.
Anyone who is employed in Switzerland must pay contributions to the AHV. This also applies to self-employed persons. It is recommended to register self-employment with the compensation office in the first months after starting self-employment. If you are only self-employed as a secondary occupation and earn less than CHF 2,500 per year (since January 2025), you do not need to register.
The costs of starting a business vary on a case-by-case basis. Depending on the legal form, you need start-up capital. In addition, there are further administrative expenses (e.g., the costs for entry in the commercial register), expenses for marketing, and expenses for product development.
You can register self-employment using an online form. You must register with the SVA of the canton where the business headquarters is located.
Yes. Whether self-employed or employed, every employed person in Switzerland is obligated to pay AHV. In the case of self-employment, self-employed persons must pay the contributions to the AHV themselves.
One is considered self-employed when working under one’s own name, on one’s own account, in an independent position, and at one’s own economic risk.
The AHV employee contributions of self-employed persons are the same as those of employed persons. Together with the EO and IV, they amount to around 10% of income. However, self-employed persons must also pay the employer contributions to the AHV themselves.
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