Running your own business has its advantages and disadvantages, for some it might seem like a risky venture, for other its provides them with the freedom to enjoy working hours suited to their needs. Read on as we give you an overview of starting your own business in Switzerland.
What You Should Know
If you are planning to start a business on your own you must have a clear plan and decide if the business will be solely yours or if you will have partners. Another factor to consider is choosing the right business legal structure. If you are a foreigner living in Switzerland you must have a Swiss residency or have a Swiss legal entity partner who is a Swiss resident.
Once you have established the core of your business infrastructure, you must find out more about your competitors and people who would generally be interested in purchasing and prompting your products and services.
There are different business structures, they depend on whether you will be starting the business on your own i.e. being the sole proprietor or you will have partners i.e. general partnership. The structure you choose will affect how your business venture will work out.
A sole proprietorship is the most common business venture because it is the cheapest and easiest way to start a business; many people start a business as a sole proprietorship and then develop into a limited liability company later. Once you start earning more than CHF 2,300 you are required to pay social insurance from your income.
The Swiss registry works diligently in eliminating fake self-employment, you might be required to fill a rigorously detailed form on your business and name at least three customers. As a sole proprietor businessman you don’t have to live in Switzerland but you must have a Swiss residency and work permit.
A general partnership business will include a number of people operating the same commercial business but with more than one individual involved. In this business venture no limited capital is required, nevertheless all partners must be Swiss residents and the company must have a Swiss address.
All partners in the business must have unlimited liability and be officially registered with the Chamber of Commerce and the Commercial registry. Additionally the name of all partners must appear in the company’s business name. Once your company has been registered you must keep all records of your accounts with profit and loss statements handy.
All companies are liable to paying taxes; the profit is due by the business owner himself or by the legal entity i.e. the corporation. Depending on the form of business you can choose to pay taxes in one form or the other. If you will be paying taxes as a legal entity then the business owner must receive remuneration as an employee or in the form of dividends from the company. All employees and partners are subject to paying taxes from their income, which is also subject to social security and pension contributions.
FERZ SA will explain the legal process of starting a business; our experts will offer valuable advice on starting a corporation, partnership or sole proprietorship.