Starting a sole proprietorship: all the steps in Switzerland

Step 1: Check if you're actually self-employed

Before registering, clarify one thing: are you genuinely self-employed, or do you have just one client who controls your working hours, tools, and processes? A single client doesn't automatically make you employed — but if the client determines how and when you work, the compensation office may classify it as dependent employment. The result: you pay higher social security contributions than planned, and your "employer" gets an unwelcome bill.

Step 2: Register with the compensation office (AHV)

You must register with your cantonal compensation office (Ausgleichskasse). This is the only mandatory registration for sole proprietorships. You'll receive an AHV number (if you don't already have one) and will be invoiced for social security contributions based on your estimated income.

Step 3: Check your insurance coverage

As a self-employed person, you are not covered by mandatory accident insurance (UVG). Check whether you need to insure yourself voluntarily — especially if you work in a high-risk industry. Daily sickness benefits insurance is also optional but strongly recommended: without it, you have no income if you're ill.

Step 4: Open a separate bank account

You're not legally required to have a business account as a sole proprietor. But mixing private and business transactions in one account is the most common source of bookkeeping chaos. A separate (even private) account saves you hours of sorting and keeps your tax return clean.

Step 5: Start your bookkeeping

From day one, record all business income and expenses. You don't need a complex system — cash-basis accounting is sufficient. The key is consistency: every transaction, every receipt. The alternative is sorting through a shoebox at year-end, which is more expensive and more error-prone.