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The first steps when you go freelance

Once the decision is made, the formalities remain. They look scary on paper, but the essentials come down to a few steps. Here are the broad strokes so you don't forget anything at the start.

Getting recognised as self-employed

In Switzerland, the first step is to register with an AVS compensation fund. It's the fund that decides whether to recognise you as self-employed. It looks at whether you work in your own name and on your own account, whether you carry the economic risk, whether you have several clients and your own set-up. This recognition determines everything else, so start there.

Social contributions

As a self-employed person, you pay your own AVS, AI and APG contributions, calculated on your income, through your compensation fund. The second pillar (occupational pension) isn't mandatory for the self-employed, but you can pay into it voluntarily. Since no one does it for you, plan to set money aside for your retirement from the very start.

Your insurance

Unlike an employee, you're not automatically covered for accidents or for loss of earnings in case of illness. These are protections you have to arrange yourself if you want them. Depending on your trade, professional liability insurance can also be useful. Take stock of what actually protects you, rather than finding out the day something goes wrong.

Commercial register and VAT

For a sole proprietorship, registration in the commercial register becomes mandatory above CHF 100,000 of turnover per year. That's also the VAT threshold: below it, you can invoice without VAT as long as you say so clearly. Above it, you have to register for VAT. As long as you start small, these two points often don't concern you yet.

Details like the exact rates, the precise obligations and the deadlines depend on your situation and can change. Before you commit, confirm with your compensation fund, and if needed a fiduciary. This guide gives you the map, not personalised advice.