Self-employment in Switzerland: the permit for self-employed people

If you are an EU/EFTA national, you have a largely guaranteed right to work for yourself in Switzerland: you register, apply for a B EU/EFTA permit and show that the business is real. If you are from outside the EU/EFTA, it is much harder: your business must serve Switzerland's overall economic interest, you need a strong business plan and financing, and quotas apply (Art. 18, 19 and 21 FNIA). In both cases the cantonal migration office decides.

In short

• EU/EFTA nationals: B EU/EFTA permit for self-employed persons, generally valid for five years, if the activity is genuine.
• Third-country nationals: the business must bring a lasting benefit to the Swiss economy, such as jobs, innovation or major investment, and quotas apply.
• Business plan: the core of the application, especially for third-country nationals.
• Legal form matters: a sole proprietor counts as self-employed; the manager of their own GmbH or AG counts as an employee.
• Social insurance: register with the cantonal compensation fund; take out health insurance within three months.

EU/EFTA nationals

Under the Agreement on the Free Movement of Persons (AFMP, SR 0.142.112.681) and the VFP ordinance, the procedure is simple:

1. Register with your municipality after moving in, usually within a few days (the canton sets the deadline).
2. Apply to the cantonal migration office for a B EU/EFTA residence permit for self-employed persons.
3. Show that you really work for yourself, for example with a business plan, client contracts or evidence of your professional activity.

The permit is in principle issued for five years and renewed while the self-employment continues. You do not have to show any benefit to the Swiss economy. The office only checks that the activity is genuine and not a way round the rules on employment. See the AFMP/VFP glossary.

Third-country nationals

Admission follows the Federal Act on Foreign Nationals and Integration (FNIA). Under Art. 18, 19 and 21 FNIA, self-employment can be approved if it serves the overall economic interest, the financial and business conditions are met, and you have suitable housing. Priority for workers from Switzerland and free-movement states (Art. 21 FNIA) applies.

• You must show a lasting positive contribution to the Swiss economy, such as new jobs, innovation or substantial investment.
• You need a full business plan with financial forecasts, market analysis and a financing plan.
• The cantonal labour market authority examines the application, sometimes with the State Secretariat for Migration (SEM) (Art. 31 OASA).
• Quotas apply (Art. 19 with Art. 20 FNIA). Self-employment permits come out of the same limited quota as work permits.
• You usually have to be in Switzerland to run the business; owning it from abroad is normally not enough.

Many third-country nationals instead set up a GmbH or AG and have it employ them as managing director, then apply for a work permit. This can be more predictable but brings its own capital and compliance duties.

Each canton applies the federal criteria at its own discretion, so documents and processing times differ. What counts is the canton where you actually work; check its requirements with the migration office.

The business plan

For third-country nationals, the business plan is the heart of the file. It must convince the canton that the business is viable, properly financed and useful to the Swiss economy. It usually covers:

• Summary: the business, what it offers and its Swiss target market.
• Market analysis: demand in Switzerland, competitors and what sets you apart.
• Financial forecasts: revenue, costs and break-even for at least the first three years, showing you can live without social assistance.
• Financing: proof of start-up capital from your own funds, investors or a bank.
• Qualifications and experience, including any earlier businesses.
• Jobs: any plan to hire people living in Switzerland. This carries real weight for third-country nationals.
• Location: office, rental or coworking arrangements, equipment and any licences.

The authority judges viability, not intentions. A generic or template plan will rarely pass the test under Art. 19 FNIA and Art. 31 OASA.

Choosing a legal form

The forms most relevant to foreign founders are the sole proprietorship (Einzelunternehmen), the GmbH and the AG. Check the amounts before relying on them.

Many foreign founders choose a GmbH: limited liability, manageable capital, and you can be its managing director, which fits a work permit. A sole proprietorship is simpler to set up but carries unlimited personal liability and needs a self-employment permit. An AG suits larger or investor-backed businesses. For tax and company-law questions, ask a qualified professional.

The permit procedure

There is no federal self-employment visa; everything runs through the canton.

1. Register with your municipality, whatever your nationality (see cantonal registration within 14 days).
2. Apply to the cantonal migration office with your business plan, qualifications, financial documents and ID.
3. Viability check by the canton, often with its economic development office, including the overall economic interest for third-country nationals (Art. 18, 19, 21 FNIA).
4. Decision by the canton. Times vary widely and are longer if the SEM is involved.
5. Permit: a B EU/EFTA permit, or for third-country nationals a B permit tied to the specific activity.

If you are refused, you can in principle appeal. Deadlines are in the decision and in cantonal procedural law; see the appeal pathway against rulings.

Commercial register

Once your status is settled, register the business in the commercial register of the canton where it has its registered office.

• Sole proprietorship: mandatory above CHF 100'000 annual turnover, voluntary below.
• GmbH and AG: mandatory before trading. A notary must certify the articles of association, and you need a capital deposit confirmation from a Swiss bank.
• Fees vary by canton and legal form, and notary fees by complexity.
• You receive a business identification number (UID) and appear in the public Zefix database.

Social insurance

Registering. As a sole proprietor you register as self-employed with the cantonal compensation fund (Ausgleichskasse), separately from the commercial register. The fund checks whether you really are self-employed: do you carry the business risk, work for several clients, use your own capital and equipment, and organise your own work? If you in fact work for one client who gives you instructions, that client can be treated retroactively as your employer and made to pay employer contributions.

Contributions. You pay contributions on your net earned income at the federal rates in force:

• AHV/IV/EO: on a sliding scale.
• ALV (unemployment insurance): not compulsory, so no unemployment benefits.
• BVG (occupational pension): in principle voluntary.
• Accident insurance (UVG): voluntary for you; compulsory for any employees.

If you pay yourself a salary as manager of your own GmbH or AG, you count as an employee and both employer and employee contributions are due. See social insurance and its impact on the permit.

Health insurance. Basic cover under the KVG/LAMal is compulsory. Take it out within three months of taking up residence; it applies back to that date. Premiums are on priminfo.admin.ch.

Money and viability

You must be able to support yourself and any dependants without social assistance. The canton looks at your start-up capital (for a GmbH or AG, the paid-up capital at a Swiss bank), your living costs during the start-up phase, and your health insurance. Third-country applicants are checked closely: bank statements, proof of assets, audited accounts of earlier businesses and signed investor agreements are usual. Unclear sources of money weaken the file.

The canton also asks whether the business will last: real demand (letters of intent from Swiss clients help), what sets it apart, your qualifications, whether it will support you within a reasonable time, its contribution through jobs, taxes or innovation, and signs of integration such as language skills and ties to Switzerland (Art. 58a FNIA).

From idea to running business

1. Decide between a self-employment permit and a company route (GmbH or AG with a work permit).
2. Write the business plan to Swiss standards, with figures in CHF.
3. Secure financing: a capital deposit account for a GmbH or AG, or proof of own funds.
4. Apply to the cantonal migration office.
5. Register in the commercial register after the permit, or in parallel in some cantons, using a notary for a GmbH or AG.
6. Register with the compensation fund.
7. Take out health insurance within three months, plus any liability or professional insurance your trade needs.
8. Register for VAT with the Federal Tax Administration if your turnover reaches the threshold.
9. Keep accounts as the Code of Obligations (CO) requires.

Your status affects later steps such as a settlement permit (C permit) and naturalisation under Art. 9, 11 and 12 SCA.