Self-employment

Becoming self-employed. Key factors.

Finally: become your own boss

Dream of becoming self-employed? If so, take a close look at the pros and cons and stay realistic. Being self-employed can come with a lot of freedom, but also with a lot of responsibility. In addition to working as a sole trader, setting up a business or company is also a form of self-employment. However, when it comes to the law, there are some major differences. To name just two, as a self-employed sole trader, you are not required to take out accident insurance or pay into a pension fund, both of which are required if you set up a business or company.

Tips and information about self-employment

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Loss of earning capacity and self-employment

What kind of insurance do you need to protect yourself from serious financial loss?

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Provisions for self-employment

Make sure to protect your future. Got everything covered?

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Self-employed: taxes in Switzerland

How much tax do you have to pay? What can you do to optimise your taxes?

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Self-employment checklist

Starting your own business? Key points to consider when becoming self-employed.

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How to become self-employed in Switzerland

Ready to make the move? If so, there are still a few things to consider before taking the plunge. For one, read up on the legal requirements and create a solid financial plan. It is also important to look into any insurance and pension plans you may might need. If in doubt, get advice about your options and about what might work best for you.

Questions and answers

Registering as self-employed and business licenses:

Trade register: In Switzerland, you need to register as self-employed as soon as you start working as a self-employed person.
AHV: Once you have started working as a sole trader or set up a business, you will also have to register your trade/business with the AHV. Good to know: If your self-employment is a second job and generates less than CHF 2,300 a year, you will not need to pay any AHV contributions, but can do if you want to.
VAT: If your annual revenue exceeds CHF 100,000, you will also have to register for VAT.
Trade licenses: For some professions, you may also need a special license or qualification. These include medical professions, catering, trades and financial services.
Residence permit: In Switzerland, all foreign nationals are able to become self-employed regardless of their nationality. However, you will still need to check the legal requirements for becoming self-employed in the canton where you live.

Key responsibilities:

Financial planning: Calculating expenses and income and planning investments.
Marketing and acquisition: Acquiring customers and marketing your products or services.
Accounting: Book-keeping and managing your finances.
Taxes and social insurance: Paying taxes and social insurance contributions.
Customer service: Looking after your customers and building long-term relationships.
Business development: Implementing new ideas and adapting to changing market conditions.

Costs of being self-employed in Switzerland:

Registration and license fees
AHV and other social insurance contributions
Insurance policies, e.g. third party liability insurance
Renting or buying business premisses and equipment
Marketing and advertising
Wages and labour costs
Taxes

Interests, skills and goals: Think about what kind of jobs you feel most drawn to and whether you would want to do these from home and as a second or main job.
Market niches: Market conditions can be key to deciding what kind of self-employment may be a good choice for you.
Advice: Getting professional advice can help you consolidate your plans and avoid potential pitfalls.

Pensions and social insurance: Check what AHV, IV and EO contributions you are required to pay and pay them to make sure you’ll be protected when you retire or should you experience loss of earning capacity.
Accident insurance: Take out accident insurance to make sure you’ll be protected if you have an work-related accident.
Health insurance: All Swiss residents are required to take out health insurance by law.
Third-party liability insurance: This insurance will protect you from customer and third party liability claims for damages.
Legal protection insurance: Legal protection insurance will help cover the costs of any potential legal disputes, which can quickly become expensive.
Business interruption insurance: This insurance will protect you financially in the event you have to temporarily close your business because of theft, fire or water damage.
Private pension (3rd pillar): Saving for your retirement. Self-employed persons can pay a lot more into their 3rd pillar account annually than employees. This means you can also save tax.
Occupational pension (2nd pillar): Self-employed persons are not required to take out an occupational pension. However, coupled with a private pension, they can also help maximise your pension savings.