Starting a sole proprietorship in Switzerland in 2025: The comprehensive guide

Starting a sole proprietorship in Switzerland will be easier than ever in 2025 – but there are also some important changes to bear in mind. In this article, you will learn step by step how to start a sole proprietorship, what requirements apply, what advantages and risks you should be aware of – and why this business model is particularly suitable for self-employed people, freelancers, and small business owners.

What is a sole proprietorship?

A sole proprietorship (also known as a “sole trader”) is the simplest and most common legal form in Switzerland for self-employed individuals. It is ideal for individuals who want to start a business without extensive formalities.

👉 Important: With a sole proprietorship, you are personally and unlimitedly liable with your entire private assets.

Requirements for setting up a sole proprietorship in Switzerland

As of 2025, the following conditions apply to the establishment of a company:

| Requirement              | Details                                                                  |
|--------------------------|--------------------------------------------------------------------------|
| Residence                | Main office or branch in Switzerland required                            |
| Nationality              | Swiss citizen or holder of a valid residence permit                      |
| Minimum capital          | No minimum capital required                                              |
| Commercial register      | Mandatory from CHF 100,000 annual revenue (optional below)               |
| Social security (AHV)    | Registration with the compensation office required                       |
| Company name             | Must include the surname (e.g., "Müller Consulting")                     |

Step-by-step guide: Starting a sole proprietorship in 2025

1. Business idea and planning

Before you get started, define your business model, target audience, and services. A business plan is not mandatory, but highly recommended.

2. Choose a business name

Important: The name of your sole proprietorship must include your last name. You can add other terms, e.g.:

• “Müller Graphic Design”
• “Petra Keller Coaching”

3. Register for social security

Register with the relevant social security office (SVA). You will receive a questionnaire to assess your self-employment status. Once this has been confirmed, your contributions will be considered as self-employment.

4. Entry in the commercial register (optional / mandatory)

• Mandatory for annual turnover of CHF 100,000 or more
• Voluntarily recommended for visibility and credibility

Registration takes place at the cantonal commercial register office. Costs: approx. CHF 120–250.

5. Opening a business account

A separate company account is not required by law, but is highly recommended in order to separate your private and business affairs.

6. Value added tax (VAT)

• ‍VAT registration required for annual turnover of CHF 100,000 or more
• Voluntary registration possible beforehand (e.g. for input tax deduction)

7. Accounting & taxes

As a sole proprietorship, you are not legally separate for tax purposes – your income flows directly into your personal tax return.

Advantages of a sole proprietorship (2025)

• Quick and inexpensive to set up
• No start-up capital required
• Simple accounting
• Personal appearance with your own name

Risks and disadvantages

• Unlimited liability (including private assets)
• Less trust from larger customers without a commercial register entry
• Fewer tax optimization options than for corporations (e.g., LLC)

What's new in 2025?

In 2025, the familiar regulations will continue to apply – but with minor digital improvements:

• Digital establishment possible in most cantons (e.g. with Startups.ch)
• Automated accounting tools or services with AI support are on the rise (e.g. Findea.ch)

Frequently asked questions about sole proprietorships

Do I have to register with the commercial register?

Only if you have an annual turnover of more than CHF 100,000 – below that, it is voluntary.

How high are the start-up costs?

Without HR registration: almost free. With registration: approx. CHF 120–250.

Can I hire employees?

Yes – however, you are liable for their wages with your private assets.

What happens if I stop trading?

The sole proprietorship can be informally terminated at any time – with the corresponding deregistration from the AHV and, if applicable, the commercial register.

Conclusion: Is a sole proprietorship worthwhile in 2025?

In 2025, a sole proprietorship will remain the best choice for sole traders who want to get started quickly and easily. Those who accept personal liability and do not need investors will benefit from minimal bureaucracy and maximum flexibility.

Tip: Use digital platforms to set up your business

Here are some recommended providers for setting up your sole proprietorship with ease

• Startups.ch
• Findea.ch