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Sole proprietorship in Switzerland
A sole proprietorship (raison individuelle) is in practice the simplest and fastest way to start a business in Switzerland.
It consists of an individual carrying out a commercial activity in their own name and under their own responsibility. Unlike a company, there is no legal distinction between the business and the owner.
This means that the entrepreneur is personally liable for all obligations of the business, which is a key aspect to consider before choosing this structure.
For many expats, freelancers and consultants, the sole proprietorship is often the first option considered due to its simplicity and flexibility. However, it also raises important legal, tax and immigration considerations that should be carefully assessed.
Conditions and specificities
One of the main advantages of a sole proprietorship is that it does not require any minimum share capital and can be set up without notarial intervention.
f the annual turnover is below CHF 100,000, registration with the Commercial Register is not mandatory. Similarly, VAT registration is generally only required once this threshold is exceeded.
There are no statutory audit requirements and administrative obligations remain relatively limited compared to a company structure.
However, these advantages must be balanced against certain important limitations.
The owner has unlimited personal liability, meaning that personal assets may be exposed in case of business debts. In addition, this structure offers limited possibilities in terms of attracting investors or raising capital.
Social security and self-employed status
Operating a sole proprietorship requires recognition as a self-employed person by the competent social security authorities.
In Geneva, this involves registration with the Office cantonal des assurances sociales (OCAS). The authorities will assess whether the activity qualifies as genuine self-employment based on several criteria (economic independence, organisation of work, number of clients, etc.).
This step is essential, as it determines your social security status and obligations.
Residence permits and expats
For foreign nationals, the ability to operate as a sole proprietor is closely linked to their residence status.
In principle, you must hold a valid Swiss residence permit allowing self-employment. The conditions may vary depending on your nationality and the type of permit.
This is often one of the most sensitive aspects for expats and should be carefully analysed before starting the activity.
Key steps
If you are planning to start a sole proprietorship in Switzerland, the main steps generally include:
- Ensuring that you hold or can obtain a valid residence permit allowing self-employment
- Registering as a self-employed individual with the competent social security authorities (OCAS in Geneva)
- Registering with the Commercial Register (if annual turnover exceeds CHF 100,000)
- Registering for VAT (if the applicable thresholds are met)
Typical questions include
• Can I be self-employed in Switzerland as a foreigner?
• Do I need a specific permit to start a sole proprietorship?
• What are the risks of personal liability?
• How is income from self-employment taxed?
• When should I choose a company instead of a sole proprietorship?
Conclusion
The sole proprietorship is a simple and flexible structure, but it is not suitable for every situation.
Understanding the legal, tax and immigration implications is essential before making a decision.
A consultation allows you to assess whether this structure is appropriate for your situation and
to identify the next steps with clarity.
Legal Expat Consultation Desk
Receive clear and practical guidance on starting and structuring your business in Switzerland.
Whether you are setting up a company, choosing the appropriate legal structure, or navigating regulatory requirements, consultations are provided by independent Swiss attorneys and tailored to your project.
During your consultation, you can receive guidance on:
- Choosing the appropriate legal structure (Sàrl, SA, sole proprietorship)
- Shareholder arrangements
- Basic corporate governance questions
- Directors’ responsibilities
- Contractual considerations
- Initial legal steps
Consultations are available online or in person in Geneva.
CHF 300 · Up to 45 minutes
Includes case review, focused consultation, and a clear written summary with next steps.
Legal consultations are provided by independent Swiss attorneys acting under their own
professional responsibility.
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Book your legal consultation with immigration specialists or independent Swiss attorneys. Our consultation can be made on Zoom or in Our office in Geneva for a flat fee of CHF 300.-.
