Becoming self-employed in Switzerland: the steps you need to know

Going self-employed in Switzerland involves several simultaneous steps: recognition of your status by the AHV compensation office, possible registration in the commercial register, VAT liability depending on your turnover, and choosing a pension solution. This guide recaps what needs to be done and in what order.

At a glance

• Self-employed status must be recognised by your AHV compensation office, based on strict criteria (multiple clients, own organisation, economic risk).
• Registration in the commercial register is mandatory from CHF 100,000 annual turnover for a sole proprietorship; optional below that threshold.
• VAT: mandatory liability from CHF 100,000 annual turnover.
• Occupational pension (BVG/LPP) is not mandatory for the self-employed: you must organise it yourself through an affiliated pension fund or the 3rd pillar.

What you need to understand

Self-employed status in Switzerland rests on recognition by the AHV compensation office, not on a commercial registration. You can have a sole proprietorship entered in the commercial register and still be treated as an employee by the AHV if you work essentially for a single client (who is then treated as a disguised employer).

The main criteria for being recognised as self-employed:

• You bear the economic risk (you invoice, you absorb unpaid bills).
• You have multiple clients (or the capacity to have them).
• You organise your own work (location, hours, tools).
• You invest in your activity (equipment, premises, marketing).

Without AHV recognition, your clients risk being treated as your employers and having to pay social security contributions on the amounts paid to you — retroactively.

Steps to follow

1. Recognition of status by the AHV

• Complete the affiliation form as a self-employed person with the cantonal compensation office.
• Submit: client contracts, invoices issued (3 to 5 different ones if possible), description of the activity, copies of your equipment or website.
• The office issues a written decision confirming (or refusing) the status.
• This status is reviewed periodically by the AHV — it is not granted once and for all.

2. Registration in the commercial register (where applicable)

• Mandatory from CHF 100,000 annual turnover for a sole proprietorship.
• Optional below that threshold (but useful for commercial credibility).
• Application at the cantonal commercial register office, with fees of around CHF 120 to 300.
• For a GmbH (LLC) or AG (corporation), registration is mandatory from the date of incorporation (minimum capital: CHF 20,000 for the GmbH, CHF 100,000 for the AG of which CHF 50,000 must be paid in).

3. VAT liability

• Mandatory from CHF 100,000 annual turnover (CHF 250,000 for certain sports and cultural associations).
• Voluntary registration is possible below that threshold (useful if your clients are themselves VAT-registered and can reclaim VAT).
• Registration with the Federal Tax Administration (FTA).
• Standard rate: 8.1%. Reduced rate: 2.6%. Special accommodation rate: 3.8%.

4. Social coverage and pension provision

• AHV / IV / EO (old-age, disability and income-replacement insurance): contributions mandatory (10% of net income, degressive scale for low incomes).
• BVG/LPP (2nd pillar): not mandatory for the self-employed. You can voluntarily affiliate with your sector's pension fund or a foundation for self-employed people.
• 3rd pillar (3a): recommended. Annual cap of 20% of net income (max. approximately CHF 35,280 per year — verify the current figure annually).
• Health insurance (KVG/LAMal): remains personal, as for all residents.
• Accident insurance: not covered by the UVG for the self-employed — include it in your KVG or take out private insurance.
• Loss of earnings due to illness: to be taken out individually; strongly recommended.

5. Documents and invoicing

• Your invoices must show: your full name, address, UID number if VAT-registered, a clear description of the service, the amount excluding/including VAT, the VAT rate, and payment terms.
• Keep accounts: mandatory from CHF 500,000 turnover, recommended in all circumstances (your trustee will thank you).

Documents to prepare and keep

• AHV affiliation decision as a self-employed person.
• Commercial register extract (if registered).
• UID number (company identification number).
• VAT liability decision (if applicable).
• Client contracts.
• Invoices issued and received (keep for 10 years).
• Professional bank statements.
• AHV statements and 3rd pillar certificates.
• Professional insurance policies (professional liability, loss of earnings, accident).

Deadlines to know

• 30 days: to apply for AHV affiliation after starting your activity.
• 30 days: to register for VAT after reaching the CHF 100,000 threshold.
• 10 years: mandatory retention period for accounting records and invoices.
• VAT return: quarterly or half-yearly depending on your scheme — deadlines must be respected strictly.

Common mistakes

• Thinking you are self-employed just because you invoice. Without AHV recognition, you can be reclassified, which creates substantial retroactive social security debts.
• Forgetting VAT when you exceed CHF 100,000. The FTA claims VAT retroactively, with interest.
• Neglecting pension provision. No automatic BVG = no accumulated 2nd pillar. Combine pillar 3a and a pension fund for the self-employed.
• Mixing personal and business accounts. Open a dedicated bank account for your activity. It simplifies everything: bookkeeping, VAT, tax return.
• Underestimating loss-of-earnings insurance for illness. A self-employed person who is ill for three months with no insurance means three months with no income.

Useful official links

• ch.ch · Self-employment
• Federal SME portal: detailed guides on status, VAT and bookkeeping.
• Federal Tax Administration · VAT
• Cantonal commercial register (Zefix: federal portal).
• AHV compensation office of your canton.

How Admini can help

As a self-employed person, you manage a constant flow of documents: invoices, contracts, AHV decisions, VAT returns, 3rd pillar certificates. Admini helps you to:

• Centralise invoices issued and received, client contracts, VAT returns and 3rd pillar certificates.
• Prepare a clean dossier for your trustee at year-end (and pay fewer billable hours).
• Receive reminders for VAT deadlines, AHV statements and 3a contributions before the end of December.
• Instantly retrieve an invoice or contract during an audit or a client dispute.

The goal is not to replace your trustee or your invoicing software, but to keep all your administrative documents in one place, ready to share.