Becoming self-employed in Switzerland

Here are the steps and useful links to help you register as a self-employed worker in Switzerland.

1. Check your eligibility

Before you start, make sure you meet the basic criteria:

  • Legal residence in Switzerland (with a valid permit).
  • Have a clear idea of the services you want to offer as a koapper.

2. Choose your legal structure

As a koapper, you’ll be self-employed. The simplest way to get started is as a self-employed worker (in your own name). Here’s what’s involved:

  • No minimum capital required to start up.
  • You are personally responsible for the financial obligations of your business.

3. Register with AVS (Assurance Vieillesse et Survivants)

Registration with the AVS is compulsory for all self-employed workers. This formalizes your status.

 

  1. Contact the AVS office in your canton.
    • Search for “Caisse AVS + [votre canton]” on Google to find contact details.
  2. Fill in the self-employment registration form.
    • Documents required :
      • Copy of your identity card.
      • Proof of activity (koappy registration).
      • Invoices or estimates if already issued (you can send them once you’ve started your services)

Contact your AVS office by telephone and deal with them directly.

4. Understand your tax obligations

As a freelancer, you’ll need to :

  • Declare your income each year on your personal tax return.
  • Pay AVS/AI/APG social security contributions, which represent around 10% of your net income.
  • If your income exceeds CHF 100,000/year, you will also have to register for VAT.

5. Manage your insurance

Certain types of insurance are highly recommended for the self-employed:

  • Accident insurance: compulsory if you work more than 8 hours a week.
  • Professional liability insurance: to cover any damage caused in the course of your services. We strongly recommend that you take out this insurance. It’s also very reassuring for potential koappy customers.

💡Already an employee? If you work more than 8 hours a week, you’re already covered by your employer’s workplace accident insurance, including for non-work-related accidents. So you don’t need to take out any new insurance for your koappy business.

    Frequently asked questions

    What permits are required to become self-employed in Switzerland?
    1. If you have a C permit, you’re completely free.
    2. With a B or G permit, self-employment is possible, but sometimes subject to certain conditions.
    3. If you have an F or S permit, you must obtain cantonal authorization before starting work.

    To find out what specific steps to take in your canton, contact the cantonal migration or labor offices.

    Useful links : Guide on the permits and the work self-employment at Switzerland

    How do I declare my self-employed income?

    Declaring your self-employed income is easy if you follow these steps:

    1. Complete your tax return

    Each year, you receive a declaration to complete. Self-employed :

    • Add your self-employed income (download the document summarizing your income in your personal space on koappy)
    • Enter your business expenses (these will reduce your taxes).
    • If your canton requires it, use a self-employed schedule to detail your income and expenses.

    2. Pay your taxes

    Once your file has been processed, the tax authorities will send you a tax assessment with the amount to be paid. This amount is usually spread over several payments during the year.

    Practical advice

    • Keep all your receipts in case of a tax audit.
    • If you have any doubts, don’t hesitate to ask a tax expert for advice, or contact your local tax office.

    With these steps, you’re ready for stress-free tax management!

    Why do I have to pay AHV contributions? What are they for?

    AVS contributions are compulsory for all self-employed persons in Switzerland. They are used to finance :

    • Your retirement: You will receive an AVS pension once you reach legal retirement age.
    • Protecting your loved ones: In the event of death or disability, your family can benefit from financial assistance.
    • Solidarity: Today’s contributions finance today’s retirees, and future generations will do the same for you.

    The amount corresponds to around 10% of your net income, divided between AVS (old age), AI (disability) and APG (loss of earnings). You register with the AVS fund in your canton and pay according to your income.

    Clearly, by contributing, you are securing your future and that of your loved ones, while taking part in a solidarity-based system!

    Can I become self-employed if I already work for a company?

    Yes, you can become self-employed while remaining an employee, provided you follow a few rules:

    1. Check your employment contract: Make sure there are no clauses prohibiting complementary or competing activities.
    2. Inform your employer (if necessary): Transparency can prevent misunderstandings.
    3. Respect your working hours: Your freelance activity must not interfere with your performance in your main job.

    To sum up: Yes, it’s possible, but keep an eye on your professional and contractual obligations. 🎯

    Do I need to register?

    No, unless your income exceeds CHF 100,000 a year. Below this threshold, registration is optional for the self-employed.

    Do I have to register for VAT? If so, how?
    • Yes, if your gross sales exceed CHF 100,000 per year. If it’s less, registration is optional, but can be advantageous if you wish to reclaim VAT on your business expenses.
    • What to do?
      1. Visit the Federal Tax Administration (FTA) website.
      2. Fill in the VAT registration form.
      3. Once you’ve registered, you’ll need to declare and pay the VAT you’ve collected to the government on a regular basis.
    Can I be self-employed if I'm unemployed?

    Yes, it’s possible, but there are rules:

     

    • You must inform your unemployment fund before you start.
    • Your self-employed activity must not exceed a certain hourly limit (usually 12 hours a week) for you to remain eligible for benefits.
    • If you’re just starting out, the unemployment fund can support you in the initial phase through programs such as “support for business creation”.

    💡This is an important subject, so don’t take any chances and discuss it directly with your ORP advisor.

    Can I be self-employed if I'm retired?

    Yes, absolutely! Retired people in Switzerland can be self-employed, subject to certain obligations:

    1. Social security contributions:
      • You must pay AVS contributions, but only on income in excess of CHF 16,800 per year (deductible for pensioners).
    2. Taxation:
        • Your self-employed income is added to your AHV or other pension when calculating your taxes.
    3. Accident insurance:
      • If your activity exposes you to risks, you may need accident insurance.
    4. Registration with the AVS fund:
      • Like any self-employed person, you must register with the AVS fund in your canton.

    In short, being retired doesn’t mean you can’t become self-employed – quite the contrary! You can combine a job with your AVS pension, while benefiting from a partial exemption on your contributions.