Social insurances for sole proprietorship
Social insurances are already an important topic for self-employed individuals at the time of establishment. Here is a brief overview of the key points that must be considered when embarking on self-employment.
OASI (Old-age and Survivors’ Insurance)
The social insurance authorities differentiate between dependent and self-employed individuals when it comes to social insurances.
- For dependent workers, the employer takes care of the social insurances of the employees.
- Self-employed individuals (owners of a sole proprietorship), on the other hand, must register with the respective OASI compensation fund themselves. The fund then determines whether one qualifies as self-employed under social insurance law. The criteria for this are outlined by the OASI in a leaflet for self-employed individuals.
As the sole proprietor’s profit is equivalent to the salary, OASI contributions are paid on the entire profit of the sole proprietorship (in contrast to a LLC, which calculates OASI contributions only on the salary, not on the profit share of the shareholders).
Pension Provision
In both the 2nd pillar (BVG) and the 3rd pillar (3a/3b), the sole proprietor is free to choose the most suitable solution or to forego insurance altogether.
Unemployment (Unemployment Insurance)
Self-employed individuals can also choose not to insure themselves voluntarily against unemployment, and no contributions need to be paid for this.
Other Social Insurances
All other insurances are not mandatory for sole proprietorships. A self-employed individual can voluntarily take out accident insurance (with SUVA or private insurers) and sickness daily benefits insurance. This is advisable in most cases, as in the event of an accident or illness, the sole proprietor may be unable to pursue their occupation and must bridge any resulting loss of income through other means.
In addition to social insurances, depending on the nature of the business, additional private insurances such as liability insurance or legal protection insurance are recommended.
