- Formation is faster and easier than with the other business forms
- Owner has full control of his business and gets all profits
- No minimum starting up capital
- No legal audit and disclosure is required
Disadvantages of a Sole Proprietorship:
- Sole proprietor has a full legal responsibility for his business and debts with all his assets
- Capital is limited by the proprietor’s own financial resources
A Sole Proprietorship Switzerland is not obliged for being registered at Commercial Register if its annual turnover is less then 100,000 CHF. If the annual turnover does not exceed 100,000 CHF, the registration in Commercial Register is still preferable. Foreigners (except EU citizens) may register as a Sole Proprietorship only having a residence in Switzerland with C-Permit (settlement permit). Domicile in Switzerland is not mandatory. No other special permission is needed, except license for those businesses which demand it by Swiss law.
A Sole Proprietorship should be named by the business owner’s family name, with or without adding his first name: However, it’s not possible to use the same name at one local area, so if somebody has already registered his business with the same name before, the newest business must take some ending to his name to make some distinct changes.
Taxes and Contributions
A Sole Proprietor is obliged to pay a Federal Direct Tax at the personal income tax rate. There are such dues for social insurance on his responsibility: health insurance, invalidity ins. (IV), retirement ins. (AHV), and loss of earnings compensation (EO).
Initial Setup Fee: CHF 890 once
Domicile Address: CHF 100 per month
Minimum Contract: 6 months