How to Register a Sole Proprietorship (Einzelfirma / Entreprise individuelle / Ditta individuale) in Switzerland

Starting as a sole proprietor in Switzerland is known as Einzelfirma in German-speaking cantons, Entreprise individuelle in French-speaking cantons, or Ditta individuale in Italian speaking cantons. It’s an appealing option for freelancers, consultants, artisans, and small business owners. It offers a lean path into self-employment: minimal upfront capital, limited bureaucracy, and relatively fast setup.

While many formalities are light, there are key choices around permits, social insurance, VAT thresholds, and accounting rules. These can feel a bit complex, especially for non-locals or for those scaling their business.

The main challenges include personal liability, ensuring correct registration, and meeting social security and tax obligations. The main benefits are cost-efficiency, operational flexibility, and the ability to start quickly.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Switzerland?

In Switzerland, a sole proprietorship is known by different terms depending on the official language of each canton. It’s known as Einzelfirma in German, Enterprise individuelle in French, and Ditta individuale in Italian. It’s an individual business owned and operated by one person. There is no legal separation between the owner and the business, so all profits, losses, and liabilities are yours. There is no required minimum capital, making this structure simple and common for solo entrepreneurs and small businesses.

How does a sole proprietorship work in Switzerland?

Sole proprietorship vs other business structures in Switzerland

Step-by-step guide: How to register a sole proprietorship in Switzerland

Step 1: Check eligibility

You must be at least 18 years old with legal residence status in Switzerland or a permit that allows self-employment in Switzerland. Foreign nationals may need specific authorization depending on their permit.

Step 2: Choose your business name

Your business name must include your family name (surname). You may add your first name, a descriptive activity, or creative name elements. Names that suggest a company form (like “GmbH”, “AG”) are not allowed. Use the Federal UID registry to check name availability.

Step 3: Gather required documents

You will typically need:

• Proof of identity (passport or identity card)

• Residence permit or proof of lawful stay if not Swiss citizen

• Proof of address

• Business activity description

• Any professional permit if your profession is regulated

Step 4: Register with relevant authorities

Register with the social insurance office (AHV/AVS) to declare yourself as self-employed. If your annual turnover is likely to exceed CHF 100,000, register in the Commercial Register. Even though registration is optional for many sole proprietors in Switzerland, some choose to register for business credibility.

Step 5: Register for VAT (if applicable)

If your turnover exceeds CHF 100,000 per year, you must register for VAT. Some industries are exempt, such as insurance, health, and farming. The standard VAT rate is 8.1%, reduced rates apply to certain goods/services. Register for VAT via the EasyGov portal and file quarterly, biannually, or monthly.

Step 6: Pay fees and contributions

There are minimal fees to register. Commercial Register entry fees depend on canton (CHF 100-CHF 200 or more). Social insurance contributions (AHV/AVS etc.) become due based on your net income once classified as self-employed.

Step 7: Post-registration obligations

For sole proprietors with annual turnover under CHF 500,000, you can keep summary accounts detailing assets and liabilities, income and expenditure, deductions, and contributions. Above the CHF 500,000, sole proprietors are required to keep full accounts that include balance sheets and profit/loss accounts. Business documents must be retained for at least 10 years.

You’ll also need to include your business income in your personal income tax return. Submit VAT returns if registered, and be sure to renew permits or licenses if your work is regulated.

Financial and tax obligations for sole proprietors in Switzerland

Income tax: You pay income tax on your business profit as part of your personal tax return. Tax rates depend on your canton and municipality. There is no separate corporate tax for a sole proprietorship; it’s part of your individual income.

Social insurance contributions (AHV/AVS, IV, EO): These contributions are mandatory once your self-employment is recognized. Contribution rates are calculated based on net income for social insurance (old-age, disability, loss of earnings). There is a minimum contribution (if your net income is low) though thresholds vary by canton.

VAT (MWST / TVA / IVA): You must register for VAT if your annual turnover exceeds CHF 100,000. Standard rate is 8.1%, with reduced rates (2.6% for basic goods, 3.8% for lodging) applied to specific goods and services.

Recordkeeping: If your annual turnover is under CHF 500,000, simplified accounting is allowed. If your annual turnover exceeds CHF 500,000, full bookkeeping is required. You must keep business records for at least 10 years.

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Registering as an Einzelfirma (or Entreprise individuelle or Ditta individuale) gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

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