Self-employment Switzerland: Useful information for aspiring entrepreneurs on their way to professional success
Self-employment in Switzerland offers numerous opportunities and is a key driver for innovation and economic growth. This article serves as a comprehensive guide for anyone who wants to take the step into self-employment.
The decision to become self-employed in Switzerland is an important step that requires careful consideration. Switzerland, with its strong economic system and a supportive environment for entrepreneurs, offers ideal conditions for self-employment. Certain cantons, such as the Canton of Zug, are known as a particularly business-friendly environment.
Benefits of self-employment in Switzerland
Becoming self-employed in Switzerland means enjoying more freedom and flexibility in your professional career. Self-employment in Switzerland opens up new opportunities for personal growth and the implementation of your own business ideas.
Self-employment in Switzerland not only offers personal freedom, but also numerous business advantages that make it an attractive location for entrepreneurs.
A significant advantage of self-employment in Switzerland is the legal and regulatory clarity that prevails in Switzerland. This means that entrepreneurs can rely on a transparent and reliable legal system, which increases planning security and minimizes the risk of legal complications. The clear legal framework also makes it easier to navigate through the various phases of founding and managing a company.
Switzerland also has a wide range of competent service providers who specialize in the needs of entrepreneurs and companies. From accounting and tax consulting firms to marketing and IT experts, there is an extensive range of professional services that support entrepreneurs in their day-to-day business.
Another major advantage is the wide range of international talent. Switzerland attracts skilled workers from all over the world, which results in a dynamic and diverse workforce. This enables entrepreneurs to recruit highly qualified personnel and to form innovative, internationally oriented teams.
In addition, business activity in Switzerland is characterized by relatively low taxes. Compared to other countries, the tax and duty burdens for companies in Switzerland are moderate, which reduces the financial burden for the self-employed and contributes to a more favourable cost structure.
All of these factors combined create a particularly conducive environment in which transactions can be carried out with ease and little bureaucratic effort. This provides a solid base for growing and successful entrepreneurship in Switzerland.
Basic steps to self-employment
How do you become self-employed in Switzerland?
In order to become self-employed in Switzerland, a number of bureaucratic steps must first be taken. This includes registering with the commercial register, obtaining a business permit and understanding the tax and legal framework.
When do I have to register as self-employed in Switzerland?
You should register as a self-employed person as soon as you generate regular income from your self-employment. This is important to correctly declare your status with tax authorities and social security.
Financial aspects of self-employment in Switzerland
Tax Considerations
One of the most common questions is:”How much can you earn tax-free in Switzerland as a self-employed person?“In Switzerland, there is no allowance for self-earned income, which means that income from the first franc onwards is subject to tax. Although this does not sound good, it is well known that tax rates in Switzerland are so low by international standards (the lowest taxes are required in the Canton of Zug) that the absence of a tax allowance is not decisive for the economic end result.
Turnover and income of entrepreneurs
There is a wide range of turnover and income among self-employed people in Switzerland. In 2017, the median income of entrepreneurs was around 26,000 CHF per year, which corresponds to less than 2,200 CHF per month [Source: CHSS]. This indicates that more than half of the self-employed earn a comparatively low income from their work. Interestingly, the average income from self-employment is significantly higher at 59'300 CHF, which is due to a smaller group of very high-earning self-employed people.
It is also worth mentioning that around 40% of the self-employed receive an additional income as employees, although this income of an average of 19,500 CHF per year is significantly lower than that from self-employment. The additional employee income is higher, particularly in the lower income categories of the self-employed. Overall, however, these figures show that self-employment in Switzerland can be easily combined with employment (part-time, as a part-time job).
The analysis of the income of spouses of self-employed people reveals that they have an average AHV-subject income of 45,000 CHF per year. This additional income plays an important role, particularly in the lower and upper income categories of the self-employed. For entrepreneurs with low incomes, the spouse's income can therefore provide significant financial support.
Obligations and rights in self-employment Switzerland
Social insurance and AHV
In Switzerland, every self-employed person is required to register with the AHV and pay the corresponding monthly contributions. As a self-employed person, you must therefore make contributions to old-age and survivors' insurance, which represent an important part of social security. You can find out everything about the social security contributions to be paid in detail here.
Operating expenses that involve self-employment
As mentioned above, AHV contributions account for a significant portion of social security contributions and therefore unavoidable costs of self-employment. Basic costs also include expenses for office supplies, equipment, rent for commercial premises and possibly vehicle costs.
Other important expenses include insurance, such as professional liability, director & board liability (D&O insurance), and business interruption insurance, which may vary depending on the business activity. Self-employed people should also set aside reserves for unforeseen expenses and tax payments. Tax-deductible business expenses, such as advertising costs, travel expenses, and certain business lunches, can reduce taxable income but require careful documentation.
For entrepreneurs who employ employees, wage costs and accident insurance contributions (UVG) are added. Accurate budgeting and careful financial management are therefore essential to effectively manage operating expenses and ensure the financial health of the company.
Conclusion and outlook
Self-employment in Switzerland offers many opportunities, but also requires discipline, planning and a good understanding of the legal and financial framework. With the right preparation and determination, the step into self-employment can be the start of a fulfilling and successful career.
This article provides a basis for starting self-employment in Switzerland. For more detailed advice, it is recommended to seek professional support to take into account all individual aspects of your planned self-employment. We would be happy to help you with this. Contact us for a non-binding consultation.