Becoming Self-Employed in Switzerland: Steps, Statuses and Obligations 2025

Starting as Self-Employed in Switzerland: The Complete 2025 Guide

Every year, thousands of people in Switzerland take the leap and start working on their own. Whether you are a developer, graphic designer, consultant, plumber, or coach, self-employed status offers unparalleled professional freedom. But this freedom comes with administrative procedures that must be mastered to get off to a solid start.

This guide details every step of the process, from initial reflection through to your first invoice. Follow it step by step to avoid the most common mistakes and launch your business with confidence.

Step 1: Assess Your Project and Personal Situation

Before registering or filling out any form, take the time to lay the foundations of your project.

Essential Questions to Ask Yourself

• Do you already have clients or concrete mandates? The AVS fund will require proof of self-employed activity. One or two signed contracts make the process much easier.
• Do you have sufficient cash reserves? Plan for a minimum of 3 to 6 months of personal expenses (rent, health insurance, food) in reserve. The first months are often slower than expected.
• Is your activity compatible with self-employed status? If you work exclusively for a single client, the AVS fund could refuse your status and consider you a disguised employee.
• What is your residence permit? Holders of a B permit can carry out self-employed activity, but additional steps may be required depending on the canton.

Develop a Simple Financial Plan

Even without writing a full business plan, calculate at minimum:

• Your fixed monthly expenses (professional rent, insurance, tools, subscriptions)
• Your target hourly or daily rate
• The realistic number of billable hours per month (generally 60-70% of your working time)
• Your monthly break-even point

This calculation will also help you set your prices. Remember to include social contributions, taxes, and quiet periods in your pricing.

Step 2: Choose Your Legal Status

This is the most structuring decision. In Switzerland, two legal forms dominate among the self-employed: sole proprietorship and LLC.

Sole Proprietorship (Individual Business)

• Minimum capital: CHF 0
• Liability: unlimited (your personal assets are at stake)
• Trade register inscription: optional if your turnover is below CHF 100,000, mandatory above
• Accounting: simplified bookkeeping possible if turnover is below CHF 500,000
• Ideal for: freelancers, consultants, craftspeople, liberal professions

The sole proprietorship is the most common choice for getting started. It is quick to set up, inexpensive, and the administrative management remains light.

LLC (Limited Liability Company / Sarl)

• Minimum capital: CHF 20,000 (to be fully paid up)
• Liability: limited to share capital
• Trade register inscription: mandatory
• Accounting: double-entry bookkeeping, mandatory
• Ideal for: projects with partners, activities with financial risk, growth ambitions

The LLC offers superior legal protection but involves creation costs (notary, trade register) and heavier management.

For an in-depth analysis of the advantages and disadvantages of each form, see our detailed comparison of sole proprietorship vs LLC.

Practical Advice

If you are starting alone with a low-risk activity (consulting, digital services, coaching), begin as a sole proprietorship. You can always convert your business into an LLC later, when your turnover and risks justify it.

Step 3: Register with the AVS Fund

This is the most important administrative step, and often the least understood. Registration with the AVS compensation fund officially establishes your self-employed status.

Detailed Procedure

1. Identify your cantonal compensation fund. Each canton has its own fund. You can also join a professional fund (for example, the AVS Fund of the Federation of Romand Businesses).

2. Complete the self-employed registration form. You will find it on your cantonal fund's website or directly at their office.

3. Provide proof of self-employed activity. The fund will verify that you are genuinely carrying out independent work and not disguised employment. Prepare:

   • Your client contracts (at least 2-3 different clients, ideally)
   • Your first issued invoices
   • Your commercial lease or professional address certificate
   • Your communication materials (website, business cards)
   • Your work permit (if you are not a Swiss national)

4. Wait for the decision. The timeframe is generally 2 to 6 weeks. The fund may request additional documents.

5. Receive your self-employed certificate. This document is valuable: it will be used to open a professional bank account, for your tax procedures, and to prove your status to your clients.

Registration Deadline

You must register within 3 months of starting your activity. A delay may result in contribution arrears with interest.

AVS/AI/APG Contributions

As a self-employed person, you pay the full social contributions (no employer share). The overall rate is approximately 10% of your net income (AVS, AI, APG). For income below CHF 58,800 per year, a degressive scale applies. On top of this come family allowances (varying by canton) and unemployment insurance contributions.

Contributions are initially set based on an estimated income. After your first tax return, the fund will recalculate your actual contributions. Plan for a possible additional bill.

Step 4: Open a Professional Bank Account

Even though this is not strictly mandatory for a sole proprietorship, separating your personal and professional finances is strongly recommended. It simplifies your accounting, tax returns, and your credibility with clients.

Popular Options in Switzerland

PostFinance

• Business account starting from CHF 9.90/month (depending on the plan)
• Extensive counter network across Switzerland
• Solid e-banking integration
• Ideal for domestic transactions

UBS

• SME accounts with dedicated advisor
• Higher costs (CHF 15 to 25/month depending on the plan)
• Financing and credit services
• Prestige for B2B relationships

Cantonal Banks (BCV, BCGE, BCVs, etc.)

• Often competitive rates for local freelancers
• Proximity and personalized advice
• Good conditions for business loans

Revolut Business / Wise Business

• 100% online account opening, fast
• Low fees, especially for international payments
• Ideal as a complement to a main Swiss account
• Note: some AVS funds and tax authorities may require an account with a Swiss banking institution

Practical Advice

Open your professional bank account before issuing your first invoices. Include your professional IBAN on all your documents. With ToBill, your IBAN is automatically integrated into your QR invoices, ensuring your clients pay into the right account.

Step 5: Take Out the Necessary Insurance

As a self-employed person, you are no longer covered by an employer. You must handle your own social protection and insurance.

Mandatory Insurance

• Health insurance (LAMal): mandatory for anyone residing in Switzerland. Verify that you are properly covered. As a self-employed person, nothing changes compared to your previous coverage.
• Occupational pension (LPP): mandatory only if you have employees. As a self-employed person without employees, enrollment is optional but strongly recommended.

Strongly Recommended Insurance

• Loss of earnings insurance (IJM): covers your income in case of inability to work due to illness. Without an employer, you have no salary coverage in case of sick leave.
• Accident insurance (LAA): mandatory for employees, optional for the self-employed. It is nevertheless essential, especially for physical trades.
• Professional liability insurance (RC pro): protects against damage caused to third parties in the course of your activity. Essential for consultants, IT professionals, architects, etc.
• Legal protection: useful in case of disputes with a client or supplier.
• Pillar 3a pension (3a): tax-deductible up to CHF 36,288 per year for self-employed persons without LPP (in 2025). This is a major tax lever.

For a complete overview of coverage and costs, see our insurance guide for self-employed workers in Switzerland.

Step 6: Set Up Your Invoicing

Invoicing is the lifeblood of any self-employed business. Clear, compliant invoices sent promptly accelerate your collections and strengthen your professional image.

Mandatory Information on Your Swiss Invoices

Each invoice must include at minimum:

• Your name or business name, and your full address
• The client's name and address
• The invoice date and a unique number
• A detailed description of the services or products
• The total amount excluding VAT, the VAT rate and amount (if registered), and the total including VAT
• Your VAT number (if registered)
• Your bank details (IBAN)
• Payment terms (deadline, late payment penalties)

Since 2022, the QR invoice has replaced the old payment slips in Switzerland. Using software like ToBill allows you to generate compliant QR invoices automatically, without risk of error.

For all details on legal requirements, see our article Swiss Invoice Template: Mandatory Information.

Why Use Invoicing Software from the Start?

Many freelancers start with an Excel or Word template. This is a common mistake that costs time and leads to oversights. Invoicing software like ToBill allows you to:

• Create and send compliant QR invoices in a few clicks
• Track your payments and automatically remind late payers
• Generate quotes and convert them into invoices
• Categorize your expenses for your accounting
• Export your data to your fiduciary

Starting with the right tools from day one will save you hours every month.

Step 7: Manage Your Tax Obligations in the First Year

Taxation is often the primary source of anxiety for new freelancers. Here is what you need to know for your first year.

Taxes Concerned

• Federal direct tax (IFD): levied by the Confederation on your net income.
• Cantonal and municipal tax (ICC): varies considerably from one canton to another. Vaud, Geneva, and Valais have different rates. See our cantonal taxation comparison for more clarity.
• VAT: mandatory if your annual turnover exceeds CHF 100,000. Below this threshold, registration is optional but can be advantageous if your clients are themselves VAT-registered. For more details, see our VAT guide for freelancers.

Provisional Tax Installments

From your first year, the cantonal tax authority will send you installment requests based on an estimate of your income. If your actual income differs significantly from the estimate, you can request an adjustment of the installments to avoid unpleasant surprises.

Possible Deductions

As a self-employed person, you can deduct from your taxable income:

• Actual professional expenses (equipment, software, supplies)
• Your office rent or a proportional share if you work from home
• Vehicle expenses (professional portion)
• AVS/AI/APG contributions
• Pillar 3a contributions
• Continuing education expenses related to your activity
• Professional insurance premiums

Keep all your supporting documents scrupulously. ToBill allows you to scan and categorize your expenses on an ongoing basis, which greatly simplifies the preparation of your tax return.

Most Common Mistakes to Avoid

After supporting hundreds of freelancers, here are the pitfalls that come up most often:

1. Not setting aside money for taxes and social contributions. Put aside 25 to 30% of each collection from day one. Open a dedicated savings account if necessary.

2. Pricing too low. As a self-employed person, you pay your own social contributions, vacations, sick days, and equipment. Your rate must reflect all of this. A freelancer who charges the same hourly rate as an employee is losing money.

3. Neglecting to follow up on unpaid invoices. In Switzerland, the average payment term is 30 days, but delays are common. Set up a structured reminder process. ToBill automates payment reminders so you don't have to think about it.

4. Mixing personal and professional accounts. This complicates your accounting and can cause problems in case of a tax audit.

5. Forgetting to register for VAT in time. Monitor your cumulative turnover. As soon as you approach CHF 100,000, register proactively.

6. Underestimating administrative time. Invoicing, accounting, reminders, declarations: plan for at least half a day per week for administration, or use tools to automate as much as possible.

7. Not taking out loss of earnings insurance. An accident or illness without coverage can jeopardize your business and personal finances.

Launch Checklist: Your Complete To-Do List

• Assess your project and calculate your break-even point
• Choose your legal status (sole proprietorship or LLC)
• Register with the AVS compensation fund
• Open a professional bank account
• Take out mandatory and recommended insurance
• Set up your invoicing software (ToBill)
• Create your compliant invoice and quote templates
• Register for VAT (if necessary or strategically advantageous)
• Declare the start of business to the cantonal tax office
• Set up a filing system for your supporting documents
• Set aside 25-30% of your income for taxes and contributions
• Schedule a meeting with a fiduciary for the first tax return

Resources and Useful Links

• AVS compensation fund: find your cantonal fund on the official OFAS website (ahv-iv.ch)
• Trade register: online registration via Zefix (zefix.ch) or at your cantonal office
• Federal Tax Administration: information on VAT and federal direct tax (estv.admin.ch)
• Legal status comparison: Sole Proprietorship or LLC
• Insurance: Insurance Guide for the Self-Employed
• Invoicing: Mandatory Information on Your Invoices
• Taxation: Cantonal Taxation Comparison in Switzerland

Launch with the Right Tools

Becoming self-employed in Switzerland is an exciting adventure, but the first weeks can be discouraging if administrative tasks overwhelm you. ToBill was designed precisely for Swiss freelancers and SMEs: compliant QR invoicing, payment tracking, expense management, and accounting export, all in a simple interface available in French.

Free 10-day trial, no credit card required. Focus on your clients, ToBill takes care of the rest.