How to become freelancer in Switzerland?

Introduction

So there you are, after long nights of reflection, the decision has been made? Do you want to become self-employed?

This guide is exactly what you need. Once you’ve read it, all that’s left for you is to put it into action, and be patient for a few weeks before your business sees daylight.

Oh, and if you’re still hesitating about starting your own company rather than going the freelance route, take a quick sidetrip first.

What are we going to talk about? I suggest we follow the steps below.

What does it mean to be self-employed?

In a nutshell, a self-employed person must have a number of very specific characteristics that differentiate him from an employee:

Working on your own behalf

When you become a freelancer, it seems obvious that you have to represent yourself and your company. You speak on your own name and you conclude deals on your own behalf.

Assume the economic risks

It may seem obvious, but a self-employed person assumes the economic risks of his business alone (or with his partners).

Financial difficulties

It’s never going to be a smooth ride, especially in the first few years. You’ll need to be able to support your business financially. You’ll need to find your customers and charge prices that will keep your business afloat.

Invoicing

In addition to carrying out the mandate for which you are responsible, you will send the invoices yourself and ensure that they are paid. Risks associated with invoicing and late payment are not uncommon.

Unemployment

Unlike being an employee, becoming self-employed means that you can no longer claim unemployment benefit because you are unable to fill your order book. The only assistance you may receive is to help you get started (the first 90 days) if certain conditions are met: https://www.bsv.admin.ch/bsv/fr/home/informations-aux/kmu/fall-zu-fall/selbststaendigkeit.html

Assume the reputational risks

Every time you make a mistake, delay delivery or misunderstand something, you’ll be the only one to blame. It’s up to you to build up a relationship of trust with your customers and a good reputation in the marketplace over time.

Having your own organisation (office, equipment, address, invoicing)

Becoming freelancer also means creating a complete organisation. You need to be able to acquire the skills, tools and software that will enable you to carry out your projects from prospecting customers to sending the invoice.

Complying with legal obligations: VAT, accounting, and tax declaration

I’ll admit it — this step isn’t technically part of the registration process for becoming self-employed. However, these obligations are essential if you want not only to become self-employed, but more importantly, to remain self-employed.

VAT Registration

This obligation is not automatic: it’s up to you to take the necessary steps with the Federal Tax Administration if — and only if — your turnover subject to VAT exceeds CHF 100,000 in a fiscal year. Otherwise, VAT registration remains optional and should be carefully considered.

Accounting

As well as finding clients, carrying out orders and sending invoices, you’ll need to keep accounts (simplified or otherwise) in order to comply with the tax authorities. We suggest you find out more about that in a second article dedicated to the self-employed and tax.

Be able to work for several clients / principals

In short, if you work for a unique client and do your work from their office… then you are not really self-employed but simply an employee of that organisation. Over time, your mandates need to multiply and be applicable to a varied clientele.

Are there several legal forms for becoming a freelancer (sole proprietorship)?

A sole proprietorship, as the name suggests, is a business run by a single entrepreneur — also known as a “raison individuelle” in Switzerland. However, it’s also possible to become self-employed while working with multiple partners; in that case, the structure is called a general partnership (“société en nom collectif”). This option is commonly used by professionals such as lawyers, doctors, or restaurant owners.

In short, these are businesses where the individual(s) are central to the activity and its public image — to the extent that the entrepreneur’s last name must legally appear in the business name.

What do you need to do to start your own freelance business?

Strange as it may seem, it can clearly help to start your independent business before taking any administrative steps.

We recommend that all future self-employed people start canvassing for clients, carrying out their first assignments and creating their first invoices before they start knocking on the doors of the AVS and the commercial register. Why do you think that is?

It is the first pillar (AHV) that will be responsible for giving the green light to your activity and to do this they will have to evaluate your business: Can it find customers? Does it have a solid business plan? How does it work?

In other words, to prove to the first pillar that you’re on the right track, there’s nothing better than providing tangible proof.

What happens next? Once you’ve launched your business, you’ll need to start the process of filling in forms and waiting for the various parties involved to validate your registration.

Step 1: Gather your various documents

The more tangible documents you have, the more successful your affiliation will be:

• Drawing up a business plan
• Sending customer quotes
• Collecting your first invoices
• Have a website
• Have a logo and graphic charter
• Rent an office
• Create your own email address
• Design your own business cards
• Etc.

Of course, not everything is compulsory, but the more strings you have to your bow, the greater your chances of success.

As you can imagine, at FBKConseils we’re here to help you with any questions, simulations and, in particular, to help you create your website, your logo and your business plan.

Once you have these documents, nothing could be easier: a few phone calls, a few trips to the post office, a little patience and you’re all set. You’ll be registered as a freelancer, and success is only waiting for you.

Step 2: Registration to the 1st pillar

It’s as simple as answering a few questions, filling in the form and attaching as much supporting evidence as possible to your application.

Step 3: The commercial register

If your turnover is less than CHF 100,000, it is not compulsory to register your company, but that does not mean that it is not a good idea to do so voluntarily. The commercial register allows you to show your customers that you exist and gives your business credibility. The commercial register can also provide a form of protection for your name or brand.

Can you hire staff if you are self-employed?

Yes, and that’s one of the characteristics of a self-employed person. He must be able to delegate work or hire staff to help him carry out his assignments.

There is no limitation in terms of employees.

However, if a self-employed person has maximum flexibility when it comes to 2nd pillar contributions, loss-of-earnings insurance and, more generally, the insurance policies they wish to take out, if they wish to take on staff they will have to comply with all the employee protection rules.

Bookkeeping and taxes for self-employed individuals

Fortunately for you, we’re not in France… In Switzerland, keeping accounts is indeed a legal obligation, but depending on the size of your business, it can be done in a much simpler and more accessible way. Yes, even you should be able to manage your own bookkeeping without necessarily needing an expert. That said, believe me — some self-employed individuals would definitely benefit from the support of a specialized firm…

I invite you to learn more in a dedicated article on bookkeeping for the self-employed.

As for the tax declaration, here too there’s good news: once your accounts are in order, most of the work is already done. In fact, the rest of the process is almost identical to that of employees, with only a few minor differences. The same rules apply when completing your tax return, whether you’re self-employed or a salaried worker.

How can FBKConseils help you with your independent business?

Finding your path is a personal step that we, unfortunately, cannot take for you. However, for everything else (or almost everything), FBKConseils is by your side. Starting an independent business is a challenge, and making it profitable in the long run is even more so. Here’s how we can support you:

Introductory meeting

20 minutes is short but enough to get started. During this initial free session, we address your main doubts and answer essential questions to help you launch your business on solid footing.

Advisory meetings

Many clients want to delve deeper into certain topics after taking the plunge, such as:

• Preparing for retirement or affiliating with a 2nd pillar.
• Optimizing their taxes.
• Conducting financial simulations tailored to their business.

FBKConseils offers personalized meetings at our offices to address these concerns and develop customized solutions.

Accounting, Tax filing, and VAT

As a fiduciary, FBKConseils is your partner for all your administrative procedures:

• Accounting management.
• Tax declarations.
• VAT assistance.

We take care of these obligations so you can focus on growing your business.

With FBKConseils, you benefit from comprehensive and personalized support at every stage of your entrepreneurial journey. Ready to get started? Contact us today!