Einzelfirma
You can start with your economic activity without a entry at the Commercial Register. Once you can prove an income with some receipts and /or contracts you can proceed to apply at the SVA for recognition of your business. The Social Insurance (SVA) regulates pensions, insurances, and social contributions. It is common to register your firm beforehand at the commercial register (Handelregisteramt) even though it is not mandatory.
GmbH or AG
It is a duty to officialise your Company at the Commercial Register (Handelsregisteramt) to make it publicly known so any third person can check the basic information of your activity. You are also obliged to register at the Social Security (SVA). And you can start your activity just after you register otherwise you will be breaking the law. The minimum capital to register as a GmbH is 20.000 Sfr. and as an AG is 100.000 Sfr. what makes starting a Limited Liability Company (LLC) not easy.
In a nutshell, to register as a sole proprietorship is relatively easy and as a limited liability company (GmbH and AG) much more difficult. An Einzelfirma is the perfect vehicle for employees who want to take risks and become their own boss and limited liability companies are for more stablished and professional businesses. Especially the ones with employees as they demand more duties from the employer.
0 Comments