Swiss Sole Proprietorship
Swiss sole proprietorship (Einzelfirma).
Free to register. Residency required.
The Einzelfirma is the simplest Swiss business structure: no minimum capital, no notary, no articles of association. The owner and the business are the same legal person. Registration in the Handelsregister is mandatory when annual revenue reaches CHF 100,000 (OR Art. 931). The firm name must include the owner's surname (OR Art. 945). Only Swiss residents or qualifying permit holders may register. Non-residents: the GmbH is the standard alternative.
CHF 0 capital
No minimum capital
Free to register
No notary required
Personal income tax
Not corporate tax
Unlimited liability
No liability shield
Key Data
Swiss Sole Proprietorship — Key Facts
Einzelfirma: the simplest way to start a business in Switzerland
CHF 0
Minimum capital required
No capitalisation requirement — lowest-cost structure to establish.
Optional
Commercial register entry
Required only if annual turnover exceeds CHF 100,000 (OR Art. 931).
Individual
Tax filing
Business income declared on the owner's personal income tax return.
Unlimited
Personal liability
The owner bears full personal liability for all business debts.
Einzelfirma
Swiss sole proprietorship — key facts
and eligibility rules
Einzelfirma — specifications (OR Art. 931, 945)
The German legal term for a Swiss sole proprietorship. French equivalent: Entreprise individuelle. Governed by the Swiss Code of Obligations (OR). No separate legal personality — owner and business are the same legal person.
No minimum capital requirement. No blocked bank account. No notarisation required. The Einzelfirma is the lowest-cost structure to establish in Switzerland.
Mandatory Handelsregister registration when annual revenue (Umsatz) reaches CHF 100,000 (OR Art. 931). Voluntary below this threshold. Threshold is on revenue, not profit.
The firm name must include the owner's surname (OR Art. 945). First name and business descriptors may be added. A purely invented trading name without the owner's surname is not permitted.
The owner's private assets — real estate, savings, personal bank accounts — are exposed to business creditors without limit. A registered Einzelfirma is subject to bankruptcy proceedings under SchKG.
Business profits are declared as self-employment income on the owner's personal income tax return. No separate corporate tax filing. No withholding tax on profit distributions. Zug personal income tax rates are among the lowest in Switzerland.
Self-employed persons pay AHV (old-age insurance), IV (disability), and EO (income compensation) contributions on net business income at approximately 10.25% (AHVG Art. 9 — verify current rate at ahv-iv.ch). No employer/employee split: the owner pays the full amount.
Mandatory VAT registration when annual worldwide taxable turnover exceeds CHF 100,000 (MWSTG Art. 10). Standard rate: 8.1% since 1 January 2024. Voluntary registration available below threshold.
Below CHF 500,000 annual revenue: simplified income-and-expense records are sufficient (OR Art. 957). Full double-entry bookkeeping is mandatory at or above CHF 500,000. Significant operational advantage over AG/GmbH.
No minimum capital. No notary. Government registration fee approximately CHF 150–300 (verify with cantonal register). Total setup cost significantly lower than GmbH (~CHF 1,800–2,000 + CHF 20,000 capital) or AG.
Swiss-resident freelancer or liberal profession
EU/EFTA nationals with a valid Swiss B permit, C-permit holders, and Swiss citizens operating as independent consultants, architects, designers, or tradespeople. Below CHF 100,000 annual revenue, no commercial register entry is needed. A UID can be obtained from ESTV for invoicing purposes. Above CHF 100,000, registration is mandatory under OR Art. 931.
Testing a local service business before scaling
A Swiss-resident entrepreneur testing a service concept before committing to the structure and capital requirements of a GmbH. If the business grows and liability risks increase, conversion from an Einzelfirma to a GmbH is possible under the Swiss Merger Act (FusG Art. 53 ff). The simple dissolution process — deregistration only, no formal liquidation — makes the Einzelfirma the lowest-commitment starting point.
Foreign founder learning the residency limitation
Non-residents without a Swiss permit cannot register a Swiss Einzelfirma. This is the most commercially critical fact for Goldblum & Partner AG's core audience: foreign entrepreneurs. The standard route for non-residents establishing a Swiss company is the GmbH (Gesellschaft mit beschränkter Haftung) — CHF 20,000 minimum capital, limited liability, no residency requirement for shareholders. Only the managing director with signing authority must be Swiss-resident.
Residency requirement: who can register a Swiss Einzelfirma?
The owner of a Swiss sole proprietorship must be a natural person domiciled in Switzerland or holding a permit that confers the right to self-employment. Non-residents without a Swiss permit cannot register an Einzelfirma. This is the critical eligibility gate that applies before any other consideration.
Setup process
Setting up a Swiss Einzelfirma.
Three steps for eligible residents.
Eligibility & Name Check
1–3 days
Confirm residency eligibility (Swiss citizen, B/C permit, or cantonal approval for non-EU/EFTA). Check proposed firm name — must include the owner's surname (OR Art. 945). Verify no conflicting names in ZEFIX. Choose business purpose and UID category.
UID Registration & Handelsregister
1–5 days
Obtain a UID (Unternehmens-Identifikationsnummer) from the Federal Statistical Office (BFS) for invoicing and VAT purposes. Below CHF 100,000 annual revenue: Handelsregister registration is optional. Above CHF 100,000: mandatory under OR Art. 931. Registration fee: approximately CHF 150–300.
AHV Registration & Compliance
1–2 weeks
Register with the cantonal AHV compensation office as a self-employed person. AHV contributions (~10.25% of net income) begin from the first year. VAT registration required if worldwide turnover exceeds CHF 100,000 (MWSTG Art. 10 — 8.1% standard rate). Income declared on personal tax return.
The Einzelfirma requires no notary, no blocked bank account, and no share capital. Setup cost: CHF 700–1,200 total (government fees + professional support). Compare: GmbH formation costs CHF 1,800–2,500 plus CHF 20,000 capital.
Structure decision
When to convert from Einzelfirma to GmbH.
Income, liability, and structure thresholds.
Stay as Einzelfirma if...
- Annual net income below CHF 100,000–150,000 (personal income tax rate competitive with 11.85% CIT)
- Business liability risk is low — no client-facing contracts with large damages potential
- You qualify for simplified accounting (below CHF 500,000 revenue)
- You are a sole practitioner with no plans to bring in co-owners
- You prefer minimal administrative overhead
- No plans to raise external investment or sell the business
Convert to GmbH when...
- Annual net profit exceeds CHF 150,000–200,000 (GmbH's 11.85% CIT becomes tax-advantageous vs personal income tax)
- Liability exposure increases (larger contracts, product liability, employees)
- Co-owner or investor needs to join the business
- Plans to sell the business (GmbH share sale is cleaner than Einzelfirma asset sale)
- Expanding beyond personal service business into product or scale operations
- Banking or trade partners prefer limited liability entity
Conversion from an Einzelfirma to a GmbH under the Swiss Merger Act (FusG Art. 53 ff) is tax-neutral if structured correctly. The owner contributes the business assets to the new GmbH and receives corresponding quotas. The CHF 20,000 GmbH capital requirement must be met at conversion. Goldblum & Partner handles the full conversion process and advises on the optimal timing.
FAQ
Frequently asked
questions
Precise answers to the most common questions about forming a company in Switzerland. For specific advice on your structure, book a free consultation.
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Baarerstrasse 25 · 6300 Zug · Switzerland · Est. 2007