Establishing a Sole Trader in Switzerland

Sole traders in Switzerland

Swiss sole trade is one of the simplest and easiest forms of doing business in Switzerland. It also allows owners to hire personnel and increase the business. The Swiss legislation allows citizens to establish sole proprietorships with the purpose of conducting their own businesses. This is the first step towards financial independency and self-employment. This is becoming very popular these days in Switzerland and is also known as sole proprietorships or individual enterprises. The Swiss and foreign citizens living in the country, both are allowed to open sole trader or set up this type of business.

Set up a sole trader in Switzerland

The private person who manages his or her own business usually registers under sole trader. This is basically the first step to the registration of a start-up company in Switzerland by a common man. This is applicable for almost all the small businesses and activities in the Switzerland. It is much simpler and easier to register under sole trader as it does not imply the same steps as the company incorporation in Switzerland.

Requirements to be met when opening an individual enterprise in Switzerland:

  • – the owner must register for social security with the Old Age and Survivor’s Insurance,
  • – the name of the sole trader must include the owner’s last name,
  • – the Swiss sole proprietorwill be held accountable personally for the company’s liabilities,
  • – if the sole trader’s annual revenue is at least 100,000 CHF , it must register with the Swiss Commercial Register.

 Sole traders have the liberty to transform their business to any other company any time.

Taxation of sole traders in Switzerland         

In Switzerland, it is mandatory for the sole proprietorship to pay the personal income tax and the social insurance among which:

  • – a health insurance,
  • – the invalidity insurance,
  • – the loss of earnings and compensation insurance.

The Swiss sole trader should submit certain documents in order to determine the payment of the social insurance premiums that could help with the clarification of the sole proprietor’s situation, such as invoices, offers, contracts, special licenses or other relevant documents. After the operations have started, it is required to submit these documents within 3 months.

If you want to establish a sole trader and need help you can contact our lawyers in Switzerland.