Starting a Business: I Started a Business Without Even Realizing It

How is a company “automatically” formed in Switzerland?

In Switzerland, a sole proprietorship needs:

• no startup capital
• no contract
• no official incorporation before a notary

It just happens when you…

• work under your own name.
• are acting on your own behalf.
• you bear a financial risk.
• as soon as you actively offer your services on the market.

What determines your status as a business is not the date of registration, but the nature of your actual activities. As soon as you meet these criteria, you must apply to the relevant compensation office for recognition as a self-employed person.

Do I have to register now?

You don't have to get everything done at once, but you should tackle the most important points now to ensure you're legally protected.

AHV (most important point)

You must register with the cantonal compensation office so that your self-employment status can be verified and confirmed. Without this recognition, your social security status will not be properly classified.

Commercial Register

You are not required to register with the Commercial Register unless your annual revenue exceeds CHF 100,000. For all sole proprietorships with lower revenue, registration remains optional.

Taxes

You are liable for taxes on all of your income, both business and personal. This means that your business profits are simply added to your personal income on your regular tax return. And this is where the tax trap snaps shut: as a result, you automatically move into a higher tax bracket and end up paying much more than usual. 

Are you unsure or do you have questions about your personal situation?

Don't worry, we're here for you! We'll take a look at your current situation together and help you get everything right from the start.