A Swiss sole proprietorship (Einzelunternehmen/entreprise individuelle) is the simplest business structure — no minimum capital, no notarization required, and only mandatory Commercial Register registration once annual turnover exceeds CHF 100,000 — but it offers no liability separation, meaning the owner's personal assets are fully exposed to business debts. Foreign nationals without a C permit (permanent residence) generally need a specific self-employment authorization from cantonal migration authorities before registering as self-employed, which is a materially harder approval than for salaried employment.
The self-employment permit hurdle catches many aspiring foreign entrepreneurs off guard — unlike an EU/EFTA national, a non-EU/EFTA national on a standard work permit typically cannot simply start freelancing; self-employment usually requires separate cantonal authorization tied to demonstrating a viable, economically beneficial business.
Key Facts
No minimum capital and no notarization required to start a sole proprietorship — the simplest and cheapest way to start a Swiss business.
Commercial Register registration only becomes mandatory once annual turnover exceeds CHF 100,000; below that it's optional (though often still useful for credibility/banking).
The owner is personally and unlimitedly liable for all business debts — there is no legal separation between personal and business assets, unlike a GmbH/AG.
Non-EU/EFTA foreign nationals generally need specific self-employment authorization from cantonal migration authorities, distinct and often harder to obtain than a standard employment-based permit.
EU/EFTA nationals with a valid Swiss residence permit can generally register as self-employed with fewer additional hurdles, similar to Swiss citizens.
Steps
Confirm self-employment permit eligibility — Non-EU/EFTA nationals should check cantonal migration authority requirements before assuming they can simply start freelancing.
Choose a business name — Must include the owner's family name if not registered in the Commercial Register.
Register with AHV/social security — Self-employed individuals must register with a cantonal AHV compensation office and pay social contributions directly.
Register with the Commercial Register if turnover exceeds CHF 100,000 — Mandatory above this threshold; optional but often beneficial below it.
Register for VAT if applicable — Required once turnover exceeds CHF 100,000/year.
Assuming any resident can freelance freely — non-EU/EFTA nationals typically need separate self-employment authorization, harder to secure than employment-based permits.
Underestimating personal liability exposure — sole proprietorship offers no asset separation, unlike a GmbH or AG.
Not registering with an AHV compensation office promptly, risking backdated social contribution assessments.