Sole Proprietorship in Switzerland: The Complete Guide 2026

Q: Where do I register my sole proprietorship?

Mandatory: at the AHV compensation fund of your canton. From CHF 100,000 revenue, additionally at the commercial register and at the FTA for VAT . Below this threshold, commercial register and VAT are voluntary.

Q: Do I need a balance sheet as a sole proprietor?

Below CHF 500,000 annual revenue: No . An income-expense statement with an asset overview is sufficient. From CHF 500,000 revenue, full bookkeeping with balance sheet and income statement is required.

01What is a sole proprietorship?

A sole proprietorship (German: Einzelunternehmen) is a legal form where a single natural person runs a business — without a separate legal entity. You are the owner, the manager, and you are personally liable with your entire private assets. In return, you have full control and no minimum capital requirement.

Same thing, different namesIn German, you'll encounter Einzelunternehmen = Einzelfirma = Einmannfirma. The common abbreviation is EU. All terms refer to the same legal form: sole proprietorship.

Compared to the GmbH (LLC — share capital CHF 20,000, separate legal entity, limited liability) and the AG (corporation — share capital CHF 100,000, shareholder structure), the sole proprietorship is the leanest option. There is no mandatory commercial register entry below CHF 100,000 annual revenue, and bookkeeping is significantly simpler.

	Sole Proprietorship	GmbH (LLC)	AG (Corp.)
Start-up capital	CHF 0	CHF 20,000	CHF 100,000
Liability	Unlimited (personal assets)	Limited to share capital	Limited to share capital
Commercial register	From CHF 100,000 revenue	Mandatory	Mandatory
Bookkeeping	Simplified (cash-based)	Double-entry	Double-entry
Time to set up	Immediately	2–4 weeks	2–4 weeks

Find a detailed comparison of all three legal forms in our article Legal Form Comparison Switzerland.

02Starting a sole proprietorship

Setting up a sole proprietorship in Switzerland is remarkably simple — you need neither a notary nor minimum capital. Strictly speaking, your sole proprietorship exists from the moment you start conducting business commercially.

Requirements

Residence in Switzerland (or C permit / EU/EFTA citizenship)
Legal capacity — of legal age and mentally competent
Commercial activity — not just a hobby
No minimum capital required
No notary, no articles of association

Step by step

Business idea and plan

Define your offering, target audience, and pricing. A simple business plan helps you gain clarity — even without bank financing.

Choose a business name

For a sole proprietorship, the owner's surname must be included in the business name (e.g., 'Müller Web Design'). Fantasy names are only allowed as additions.

Register with the AHV compensation fund

Register as self-employed with the cantonal compensation fund. You'll need: order confirmations, invoices, and proof that you work on your own account.

Open a business account

Separate personal and business finances from the start. Most Swiss banks offer business accounts from CHF 0 basic fee.

Set up accounting

Below CHF 500,000 annual revenue, a simple income-expense statement is sufficient. Set up your system from day one — catching up later is painful.

Optional: Commercial register and VAT

From CHF 100,000 annual revenue, commercial register entry is mandatory. The same threshold triggers VAT obligation. Below that, both are voluntary.

Detailed founding guideFind the complete founding process with all forms and deadlines in our article Starting a Sole Proprietorship. More tips for launching your self-employment at Becoming Self-Employed in Switzerland.

03Registering your sole proprietorship

When setting up a sole proprietorship, there are three registrations you need to know about. Depending on your revenue, they are mandatory or voluntary.

AHV compensation fund

Registration with the AHV compensation fund is always mandatory as soon as you are self-employed — regardless of revenue. The fund checks whether you are genuinely self-employed (multiple clients, your own business risk, own infrastructure). Only with the fund's confirmation is your self-employment official.

Don't forget AHV registrationWithout registration at the compensation fund, you are formally not self-employed — and risk back payments plus late interest. Register within the first few weeks of starting your activity.

Commercial register entry

A commercial register entry is only mandatory for sole proprietorships from CHF 100,000 annual revenue. Below that, you can register voluntarily. Benefits: your business name is protected, and credibility with clients and suppliers increases.

Costs: The basic fee for registering a sole proprietorship is CHF 80. With additional fees (signing authority, SHAB publication), you'll pay at least CHF 120. The exact fees are defined in the Commercial Register Fee Ordinance (HRegGebV) and may vary slightly by canton.

Process: Registration is done at the cantonal commercial register office — in many cantons also online. You need: a completed registration form, a copy of your ID, and an authenticated signature. After review, your entry is published in the Swiss Official Gazette of Commerce (SHAB).

Voluntary registration is often worthwhileEven below CHF 100,000 revenue, a commercial register entry can pay off: your business name is protected nationwide, opening a business account is easier, and you appear more professional to clients and suppliers. Cost: from CHF 120 one-time.

VAT registration

From CHF 100,000 annual revenue (worldwide), you are VAT-liable and must register with the FTA. Below this threshold, voluntary registration can make sense — for example, if you can reclaim significant input tax (e.g., high material costs). More details in our article VAT Obligation from CHF 100,000.

Annual revenue	Commercial register	VAT obligation	Bookkeeping
Below CHF 100,000	Voluntary	Voluntary	Simplified (cash-based)
CHF 100,000 – 499,999	Mandatory	Mandatory	Simplified (cash-based)
From CHF 500,000	Mandatory	Mandatory	Double-entry bookkeeping

Learn more about social insurance contributions at AHV Contributions for the Self-Employed.

04Accounting for sole proprietorships

Bookkeeping requirements for a sole proprietorship depend on annual revenue. The good news: below CHF 500,000, you can use simplified bookkeeping.

Simplified bookkeeping (income-expense statement)

Sole proprietorships below CHF 500,000 annual revenue only need to track income, expenses, and financial position according to Art. 957 para. 2 CO. In practice, this means a clean income-expense statement with all receipts is sufficient. More details in our article Income-Expense Statement.

Full bookkeeping (from CHF 500,000)

Once you reach CHF 500,000 annual revenue, you are obligated to keep full (double-entry) books. This means: chart of accounts, debit/credit entries, balance sheet, and income statement. You'll typically need an accountant or professional accounting software.

Balance sheet for sole proprietorships

A balance sheet is only mandatory from CHF 500,000 revenue. Below this threshold, an asset statement (overview of assets and liabilities at year-end) suffices. For the tax return, however, you still need a summary of your business assets — even without a formal balance sheet requirement.

No balance sheet needed below CHF 500,000As long as your annual revenue stays below CHF 500,000, you don't need to prepare a balance sheet. An income-expense statement with an asset overview is enough. Full bookkeeping with a balance sheet only becomes mandatory when you exceed this threshold.

Record retention

All business documents — receipts, invoices, bank statements, contracts — must be retained for 10 years. This applies to both physical and digital documents. Thermal paper receipts should be additionally copied or scanned, as they fade over time.

Find all details about bookkeeping obligations at Bookkeeping Obligations in Switzerland.

05Taxes and social insurance

As the owner of a sole proprietorship, you declare your business profit as personal income. Social insurance contributions are also your own responsibility.

Income tax

Your business profit flows directly into your personal tax return. You fill out the self-employment form (named differently depending on the canton). The profit is taxed together with your other income at the regular tax rate — there is no separate corporate tax rate as with a GmbH.

Find tips for your tax return in our article Tax Return for Sole Proprietorships.

AHV/IV/EO contributions

As a self-employed person, you pay AHV/IV/EO contributions on your net profit. The rate is approximately 10% (declining scale for lower incomes). Unlike employees, you bear the full contribution alone — no employer covers the other half. More at AHV Contributions for the Self-Employed.

Pension: BVG and Pillar 3a

As a self-employed person, you are not subject to BVG (2nd pillar / occupational pension). You can voluntarily join a pension fund. Particularly attractive is Pillar 3a: without BVG affiliation, you can contribute up to CHF 36,288 per year (as of 2026) and fully deduct it from taxable income.

Set aside 25–30% as reservesPut 25–30% of your net profit into a separate account each month. This covers income taxes, AHV contributions, and advance payments — avoiding unpleasant surprises when the tax bill arrives.

06Accounting software for sole proprietors

Many sole proprietors start with Excel — it works at first but quickly reaches its limits. Once you regularly send invoices, file VAT returns, or need to track outstanding payments, specialised software pays off.

	Excel / Google Sheets	Accounting software
Cost	Free	From approx. CHF 9/month
Setup	Immediate	15 minutes
QR invoices	Not possible	Auto-generated
VAT return	Manual calculation	Automatic
Receipt matching	Copy-paste	Photo / upload
Error risk	High (formula errors)	Low (validation)
Tax return	Fully manual	Export function
Scalability	Limited	Grows with you

einzly — Accounting for Swiss sole proprietorshipseinzly was built specifically for sole proprietorships under CHF 500,000 revenue. QR invoices, income-expense statements, VAT, and receipt management — all in one app. Try free for 30 days, no credit card required.

07Frequently asked questions

A sole proprietorship (Einzelunternehmen) is a legal form where a single natural person runs a business. There is no separate legal entity — you are personally liable with your private assets, but you have full control and no minimum capital requirement.

The common abbreviation is EU (for Einzelunternehmen). The terms Einzelfirma and Einmannfirma are used synonymously.

Mandatory: at the AHV compensation fund of your canton. From CHF 100,000 revenue, additionally at the commercial register and at the FTA for VAT. Below this threshold, commercial register and VAT are voluntary.

Below CHF 500,000 annual revenue: No. An income-expense statement with an asset overview is sufficient. From CHF 500,000 revenue, full bookkeeping with balance sheet and income statement is required.

For Swiss sole proprietorships under CHF 500,000 revenue, software specialised in income-expense statements works best — like einzly. Look for QR invoices, VAT integration, and a Swiss chart of accounts.

Yes, this is possible at any time. You establish a GmbH (share capital CHF 20,000, notary, commercial register entry) and transfer the assets and liabilities of your sole proprietorship. The process is called conversion by asset transfer and is generally tax-neutral when executed correctly.