Switzerland (CH)
Switzerland is a landlocked federal republic of 26 cantons at the heart of Europe, bordered by Germany, France, Italy, Austria, and Liechtenstein.
Capital: Bern
Region: Europe
Language: German
Currency: CHF (CHF)
Cost of living: Very expensive (index 122)
Emergency: 112
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Business Setup
Start a business or go freelance in Switzerland.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Define your business activity and choose legal form (usually Einzelfirma for solo freelancers).
- 2 2. Register as self-employed with the cantonal AHV/AVS compensation office (Ausgleichskasse). You must prove genuine self-employment: at least 3 clients, own infrastructure (invoices, office/home office, tools), own business risk. They decide — without this certificate, the Swiss taxman will treat you as an employee (Scheinselbstständigkeit = severe penalties).
- 3 3. Obtain a UID (Unternehmens-Identifikationsnummer) from the federal commercial registry — this is your business ID number.
- 4 4. If turnover will exceed CHF 100,000/year: register for VAT (Mehrwertsteuer / TVA) with ESTV — CHF 0 fee, online at estv.admin.ch. If below, registration is voluntary (useful if clients are VAT-registered businesses).
- 5 5. Register with commercial register (Handelsregister / Registre du commerce) if turnover exceeds CHF 100,000/year.
- 6 6. Open a separate business bank account (not legally mandatory for Einzelfirma but strongly recommended for bookkeeping and professionalism).
- 7 7. Arrange mandatory insurances: AHV/IV/EO via cantonal Ausgleichskasse (8.1% of income, ~9.7% after admin fee); KVG health insurance (direct, not through employer); voluntary UVG/LAA accident insurance; 2nd pillar BVG pension is optional for self-employed — strongly recommended; 3rd pillar 3a (up to CHF 36,288/year for 2026, capped at 20% of net income).
- 8 8. Set up bookkeeping (Buchhaltung): "Simple accounting" (Einfache Buchhaltung) is legal below CHF 500,000 turnover — income/expense ledger plus asset register. Above CHF 500,000: full double-entry accounting required.
- 9 9. Issue proper invoices (Rechnungen / factures) with: your name/business name, UID, client details, itemised services, date, amount excluding and including VAT, VAT rate and amount, payment terms (default: 30 days).
- 10 10. File annual tax return (Steuererklärung) with your cantonal tax office — business income is included in personal tax return for sole proprietorships; quarterly VAT returns if VAT-registered.
Tax registration
Self-employment status is confirmed by the AHV/AVS Ausgleichskasse — usually processed within 4–8 weeks with a 1-page application + proof of first 2–3 contracts/invoices. Once confirmed, you pay "Beiträge" based on estimated net income, adjusted to actual at year-end. No separate income tax registration — self-employment income is declared in your personal annual Steuererklärung.
VAT threshold
CHF 100,000/year gross turnover. Below: VAT registration is optional but possible voluntarily. Above: mandatory registration within 30 days of exceeding threshold. Quarterly VAT returns (3 months + 60-day filing). Standard rate 8.1%, reduced 2.6% (food, books, medicines), special 3.8% (accommodation).
Invoicing
Swiss invoices must include: supplier name and address, UID (CHE-xxx.xxx.xxx), client details, unique invoice number, date of issue, description of service/goods, amount excluding VAT, VAT rate and amount per line, total including VAT, payment terms and IBAN, optional QR-bill (standard since 2022). VAT-registered suppliers must include VAT breakdown. Invoices must be kept for 10 years.
Social security
Self-employed AHV/IV/EO: 10.0% of net income (8.1% AHV + 1.4% IV + 0.5% EO, sliding scale for low income below CHF 60,500). ALV unemployment does NOT apply to self-employed — you have no unemployment safety net. BVG 2nd pillar is optional but recommended; 3a private pension limited to CHF 36,288/year (2026) or 20% of net income (higher cap than employees). KVG health insurance is mandatory and private (direct contract).
💡 Switzerland has NO general "freelancer visa" for non-EU citizens — self-employment as a foreigner requires CHF 100,000+ investment proof and a B permit for self-employment from cantonal Migrationsamt. EU/EFTA citizens have free establishment rights. Key risk: "Scheinselbstständigkeit" (bogus self-employment) — if you work for only 1–2 clients, authorities may reclassify you as their employee, triggering retroactive social charges and penalties on the client. Protect yourself with multiple clients, your own infrastructure, and genuine business risk.
🏢 Business Structures
Einzelfirma · Einzelunternehmen / Raison individuelle / Ditta individuale
Sole proprietorship
None
Min. capital
Same day (registration with AHV compensation office + optional commercial register)
Setup time
Liability: Unlimited personal liability — your private assets are exposed to business debts.
Setup cost: CHF 0 (under CHF 100k turnover); CHF 120 commercial register fee (over CHF 100k mandatory registration)
Best for: Freelancers, consultants, small shop owners, trades, and solo service providers. Taxed as personal income. Very lean to set up and close. You must register with the cantonal AHV/AVS compensation office (Ausgleichskasse) to prove self-employment status.
GmbH · Gesellschaft mit beschränkter Haftung / Société à responsabilité limitée (Sàrl) / Società a garanzia limitata (Sagl)
Limited liability company (similar to UK Ltd, German GmbH)
CHF 20,000 (must be fully paid in at formation)
Min. capital
2–4 weeks
Setup time
Liability: Limited to share capital — founders' private assets protected.
Setup cost: CHF 1,500–3,500 (notary, commercial register, advisor fees)
Best for: Small-to-medium businesses, agencies, tech startups with small founding teams. Shareholders (Gesellschafter) are publicly listed. One shareholder/director minimum. At least one director must be resident in Switzerland (or a managing director with individual signing rights).
AG · Aktiengesellschaft / Société anonyme (SA) / Società anonima (SA)
Public limited company (PLC / joint-stock corporation)
CHF 100,000 (at least CHF 50,000 paid in at formation)
Min. capital
3–5 weeks
Setup time
Liability: Limited to share capital.
Setup cost: CHF 3,000–6,000 (notary, register, legal advice)
Best for: Larger companies, ventures seeking outside investment, businesses that value shareholder anonymity (shareholders NOT publicly listed). One shareholder/board member minimum. At least one board member or managing director resident in Switzerland. The standard form for mid-sized Swiss firms and listed companies (SMI index).
Kollektivgesellschaft · Kollektivgesellschaft / Société en nom collectif / Società in nome collettivo
General partnership
None
Min. capital
1–2 weeks
Setup time
Liability: Unlimited joint and several liability for all partners
Setup cost: CHF 120 commercial register fee
Best for: Partnerships of 2+ people running a trade or profession where each partner accepts full liability. Common for traditional lawyers, architects, doctors, small family businesses. Taxed as personal income of partners.
Verein · Verein / Association / Associazione
Non-profit association
None
Min. capital
Same day
Setup time
Liability: Limited to association assets (members generally not personally liable)
Setup cost: CHF 0 (statutes drafted by members, no register required for simple associations)
Best for: Sports clubs, cultural organisations, community groups, non-profits. Extremely common in Switzerland — registered associations may apply for tax-exempt status. Minimum 2 founders.
Zweigniederlassung · Zweigniederlassung / Succursale
Branch of foreign company
None (but parent company fully liable)
Min. capital
3–6 weeks
Setup time
Liability: Parent company liability
Setup cost: CHF 600–1,500
Best for: Foreign companies wanting a Swiss presence without incorporating a subsidiary. Branch has its own management, VAT number, and Swiss presence, but is legally part of the parent. Must register with commercial register and appoint a resident representative.
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