Sole proprietorship: When does an entry in the commercial register and registration with the social insurance authority (AHV: Old Age and Survivors’ Insurance) have to be made?
A sole proprietorship must be entered in the commercial register from a turnover of CHF 100,000 and owners must generally register with the relevant compensation office at the time of commencing business activities.
Voluntary entry of a sole proprietorship in the commercial register
Even though entry in the commercial register is only mandatory for companies with a turnover of CHF 100,000 or more, voluntary entry in the commercial register is recommended. The extract from the commercial register can be requested by authorities, suppliers and customers (e.g. for opening a bank account or concluding leasing contracts, etc.). An entry in the commercial register also demonstrates seriousness to customers. If there is no entry in the commercial register, this can raise doubts and provide information about the turnover of the sole proprietorship. In addition, the entry in the commercial register is proof of the existence of a company in Switzerland.
Registration with the social security authorities
As a general rule, owners of sole proprietorships must register with the Old Age and Survivors’ Insurance (AHV) as soon as they commence business activities. In the case of low income (less than CHF 9,800 per year), the minimum amount of CHF 514 must be paid.
However, if the self-employed activity is only carried out as a secondary activity, registration is not mandatory if the income is less than CHF 2,300 per year. As soon as this limit is exceeded, you must register again.
You can also find more information in our blog:
- General legal overview of the sole proprietorship
- Social insurance and sole proprietorship
- Taxes incl. VAT for the sole proprietorship
