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Get started now with your sole proprietorship - how to successfully found a company

Are you an architect or craftsman, mechanic or hairdresser, artist or consultant, engineer or businessman and want to set up your own business in Switzerland? Then setting up a sole proprietorship is the simplest solution.

Sole proprietorship or another legal form? Foundera advises you!

There are over 300,000 sole proprietorships in Switzerland. This makes it the most popular legal form, which is particularly suitable for small, personal companies. If you found a sole proprietorship in Switzerland, you are the sole owner. This means you are completely independent and make all business decisions yourself. However, you also bear the entire responsibility and the financial risk.

Are you already sure whether you should opt for the legal form of a sole proprietorship? Or are you still thinking about founding an LLC or Ltd. after all? Because you can also do this as a sole individual. If you plan to expand your company at some point or if you don't want to be personally liable, one of these options could be an advantage. Or would you like to start your own business on a part-time basis until your company is doing really well?

Foundera will support you during the foundation process and advise you right from the start, including on the right legal form. We are at your side from the planning stage through the company foundation to the growth phase if you want to found a sole proprietorship. You benefit from our experience, our expertise, our contacts and our personalised advice. You'll start your self-employment with the confidence that you've done everything right.

Foundera - your strong partner for setting up your sole proprietorship

Never opened a company before? No problem - we have all the more experience. When we help you set up your sole proprietorship, you can rely on the following benefits:

Simple

Setting up a sole proprietorship in Switzerland is easier than setting up a Ltd. or LLC anyway, but there is still a lot to consider. Don't worry: We know all the processes, conditions and pitfalls and will guide you through the foundation phase with confidence.

Personalised

Our foundation consultants have a great deal of experience with all aspects of self-employment. They know what to expect and will prepare you in the best possible way. And it's personalised: You will be looked after by one contact person throughout the entire foundation process.

Economical

Our fee of CHF 349 excl. VAT for counselling and founding your sole proprietorship gives you financial planning security if you want to found a sole proprietorship. At the same time, you save a lot of time and effort, as our processes are well thought out and tried and tested.

Comprehensive

Our advice covers your personal and entrepreneurial risks as well as accounting, finance, taxes and more. When it comes to the actual foundation, our services range from checking the company name to preparing all documents.

Sustainable

Even after your sole proprietorship has been founded, we will accompany you on your path to success: We will contact you every six months for the following two years. During the six-monthly check-ins, we analyse your business development together with you.

The perfect name for your sole proprietorship

The company name can contain various elements - for example, it can describe your business activity or the location of your company. Fantasy names are also possible. However, the decisive element is your surname according to the ID. This must be included in the company name.

Let's say your name is Petra Keller and you work as an illustrator. You specialise in funny comics and live in Geneva. Theoretically, your sole proprietorship could have exactly the same name as you. But there are other possible variations, for example:

  • Petra Keller
  • P. Keller
  • Illustrations Petra Keller
  • Keller Comics
  • Keller Comics Geneva
  • Zisch-Bang-Comics, Owner Petra Keller
  • Geneva Comics Petra Keller

As a general rule, the name must not be offensive or contrary to the public interest. It must not be misleading with regard to the purpose of the company or its legal form. 

Of course, you should make sure that the company name you want to choose is not already taken.

By the way: In the case of a sole proprietorship, the protection of your company name is limited in terms of territory. Someone in another region could choose exactly the same name.

Tip: It's best to check whether the corresponding domain for your website is still available! We will of course be happy to advise you on the choice of name.

Einzelfirma Gründen Schweiz – Beratung Foundera

What are the arguments in favour of setting up a sole proprietorship in Switzerland? And what speaks against it?

It is not without reason that the sole proprietorship is the most common legal form for companies in Switzerland. The advantages convince over 300,000 company owners.

The advantages: uncomplicated and favourable

  • Prerequisites
    Do you have Swiss citizenship or a residence permit with a work permit and a place of residence in Switzerland? Wonderful - you already fulfil all the requirements for setting up a sole proprietorship.
  • Formalities
    Setting up a sole proprietorship in Switzerland is quick and easy. Entry in the commercial register is only mandatory if your annual turnover exceeds CHF 100,000, but is otherwise voluntary. However, an entry in the commercial register is always recommended in order to inspire confidence and show that you are serious.
  • Foundation costs
    Nominal capital - as with an LLC or Ltd. - is not required. This makes setting up your sole proprietorship in Switzerland very inexpensive. Apart from advice and the possible entry in the commercial register, there are hardly any costs.
  • Independence
    You have the sole say in your sole proprietorship. Neither business partners nor shareholders or investors can interfere with you. This gives you a great deal of freedom in your entrepreneurial decisions.
  • No double taxation
    Unlike an LLC or Ltd., a sole proprietorship is not considered a legal entity in Switzerland. It is therefore not subject to double taxation. Instead, the company's net profit is taxed together with your other income.

The disadvantages: financial risks and low credit rating

  • Full liability
    As the owner of a sole proprietorship, you bear sole financial responsibility and are liable with your private assets - without limitation. Debts or even bankruptcy can have major consequences for you.
  • Difficult access to the capital market
    Loans are dependent on your personal creditworthiness. Sole proprietorships are less trustworthy with banks than companies with other legal forms. It is more difficult to obtain a loan.
  • Severe restrictions for investors
    There are only very limited opportunities to finance your sole proprietorship with outside capital. Third parties are basically only allowed to invest in your company through loans.
  • Insurance
    Whether it's a pension scheme or other insurance premiums such as accident or daily allowance insurance: you have to finance all of this on your own. However, there is one thing you cannot insure yourself against as the owner of a sole proprietorship: Unemployment. Good to know: Foundera can advise you on the best way to insure your risks.
  • No anonymity
    Your name must be included in the company name of your sole proprietorship. If you register your sole proprietorship in the commercial register, anyone can identify you - anonymity is therefore impossible.

FAQ ‘Founding a sole proprietorship’: You ask, Foundera answers

Questions about the legal form of a sole proprietorship

Can a sole proprietorship be founded by two people?

No, a sole proprietorship by definition always has a sole proprietor.

Am I automatically self-employed after setting up a sole proprietorship?

Officially, you must be recognised as self-employed by the compensation fund (SVA) that is responsible for you. To do this, you need several clients, for example, and must be able to prove that you are not directly dependent on someone else (fake self-employment). The actual requirements are checked in each individual case. Foundera is at your side here if you want to found a sole proprietorship: We will help you register with your local SVA.

Am I allowed to employ staff in my sole proprietorship?

Yes, this is possible. In this case, you must take out the required insurance in accordance with the BVG (Occupational Pension Act) and UVG (Federal Law on Accident Insurance). Please note: You also have unlimited private liability for wages and social security contributions. It therefore makes sense to set up an LLC or Ltd if you have employees.

Questions about setting up your sole proprietorship

Is nominal capital required for the formation of a sole proprietorship?

No - unlike with an LLC or a Ltd, there are no regulations regarding minimum capital for setting up a company. This also applies if you want to found a sole proprietorship as a sideline.

What happens to my pension fund if I found a sole proprietorship?

If you found a sole proprietorship, you do not have to pay into the occupational pension scheme (BVG). However, if you were a permanent employee before you founded your company and have already built up assets in the second pillar, you have two options:

  • You can have the pension assets you have already earned paid out in cash. To do this, however, you must be recognised as self-employed by the relevant compensation office.
  • You can have these assets transferred to a vested benefits account.
What does it cost to found a sole proprietorship in Switzerland?

It is very inexpensive to found a sole proprietorship. All in all, the formation costs are around CHF 500.

Questions about founding your sole proprietorship with Foundera

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What does it cost to commission Foundera to set up a sole proprietorship?

If we support you in setting up your sole proprietorship, this will cost you a flat rate of CHF 349 excluding VAT.

What services are included in the Foundera consulting flat rate?

This begins with an individual initial consultation and continues through the process of setting up the company, advice on related topics such as pensions or accounting, to semi-annual check-ins over the following two years. A dedicated contact person will accompany you on your path to success.

Our offer also includes these modules:

Founding a sole proprietorship

  • Review of the company name and initial assessment under trade mark law
  • Formulation and review of the company purpose
  • Preparation of all founding documents incl. dispatch
  • Checking the entry in the commercial register
  • Fast availability and processing

Individual initial consultation on

  • Personal and entrepreneurial risks
  • Organisation of accounting and finances
  • Taxes, OASI, SVA and VAT
  • Sustainable growth

Half-yearly check-ins on business development for two years

Premium conditions with network partners

Which services are not included in the Foundera flat rate?

Not included are your signature notarisation and the fees for the commercial register entry, which vary from canton to canton.

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