Setting up a company in Switzerland as a cross-border worker

Can a cross-border worker set up a company in Switzerland?

Yes, a cross-border worker holding a G permit can set up and manage a company in Switzerland. The G permit authorises the exercise of a lucrative activity in Switzerland, including a self-employed activity, on condition that the cross-border worker continues to reside in their original border region (France, Germany, Italy or Austria) and returns regularly to their home. This possibility is governed by the Agreement on the Free Movement of Persons (AFMP) between Switzerland and the EU.

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What is the G permit and what rights does it confer?

The G permit, or cross-border authorisation, is issued to European nationals who work in Switzerland but reside in a neighbouring country. It is valid for an indefinite period and is linked to an employer or a professional activity. The holder of the G permit must reside in the border zone and return home at least once a week (or daily depending on the bilateral agreements with each country). Under the AFMP, European cross-border workers enjoy the same rights as Swiss nationals for the exercise of a self-employed activity.

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Employed activity and self-employed activity: what is the difference for a cross-border worker?

A cross-border worker can carry out two types of economic activity in Switzerland: an employed activity for a Swiss employer, or a self-employed activity as a business owner. In both cases, they are subject to Swiss social contributions (AHV, IV, EO, accident insurance). For a self-employed activity, the cross-border worker must notify the competent AHV compensation fund and, if necessary, register with the Commercial Register. The distinction between employed and self-employed is important as it determines insurance obligations and entitlements to social benefits.

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Administrative and tax obligations for the cross-border entrepreneur

A cross-border worker who sets up a company in Switzerland must fulfil several administrative obligations. They must notify the competent cantonal employment authority, affiliate with an AHV compensation fund, and register with the Commercial Register if the legal structure requires it (LLC, PLC) or if their turnover exceeds certain thresholds. On the tax side, income from professional activity in Switzerland is taxed at source in Switzerland, and the cross-border worker must declare this income in their country of residence, taking bilateral tax conventions into account.

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Franco-Swiss tax convention: what the French cross-border worker needs to know

For French cross-border workers, the tax convention between France and Switzerland provides specific rules. Cross-border workers working in border cantons (Geneva, Vaud, Valais, Neuchâtel, Bern, Solothurn, Basel-City, Basel-Country, Aargau and Zurich) are generally taxed in their country of residence, i.e. France. Income from a Swiss company may nevertheless be partially taxed in Switzerland depending on the nature of the activity and the legal structure adopted. It is strongly recommended to consult a specialised tax adviser to optimise your situation.

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Social insurance: what the cross-border entrepreneur must pay

Every self-employed cross-border worker operating in Switzerland is required to affiliate with the AHV/IV/EO and pay contributions on their self-employment income. The AHV contribution rate for a self-employed person is 10% of net income (reduced rate possible for low incomes). The LPP (occupational pension provision) is not mandatory for the self-employed, but is strongly recommended. Accident insurance (LAA) also applies. These contributions represent a significant charge that must be taken into account when calculating the profitability of the entrepreneurial project.

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FAQ - Setting up a company in Switzerland as a cross-border worker

I am a cross-border worker with a G permit. Am I allowed to set up a company in Switzerland?

Yes. The G permit authorises the exercise of a self-employed activity in Switzerland, including setting up a company. You can be a partner in an LLC or a shareholder in a PLC. However, you must continue to reside in your border region and return home regularly. Your professional activity must effectively be carried out on Swiss soil.

My G permit is valid for employed work. Does it also cover self-employed activity?

Not automatically. The G permit must be adapted to cover self-employed activity. You must notify the competent cantonal authority (Population Service or Employment Service). The procedure is generally straightforward for European nationals thanks to the Agreement on the Free Movement of Persons (AFMP).

Do I need to affiliate with Swiss AHV (social insurance) as a self-employed cross-border worker?

Yes, affiliation with Swiss AHV is mandatory for all self-employed persons exercising their activity in Switzerland, whether cross-border workers or residents. The contribution rate is 10% of net income for self-employed persons. This affiliation is one of the first steps to complete before starting your activity.

As a French cross-border worker, where will I pay tax on income from my Swiss company?

For French cross-border workers operating in border cantons (Geneva, Vaud, Valais, Neuchâtel, etc.), professional income is generally taxed in France under the Franco-Swiss tax convention. However, depending on the legal structure of the company and the remuneration method, certain taxes may be due in Switzerland. A personalised tax analysis is essential.

I am a German cross-border worker. Can I set up a LLC in Switzerland?

Yes. A German cross-border worker can set up a LLC in Switzerland. The rules are similar to those for French cross-border workers: the G permit must cover self-employed activity, and at least one manager domiciled in Switzerland must be appointed. The German-Swiss tax convention will govern the taxation of your income.

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