Hi there,

I've read quite a few of the threads at length so please forgive me if I have overlooked the answer to this question.

I have a website selling toys and dressing up clothes, most of which I make myself. At the moment I am lucky to get 1 order a week which is usually under 50CHF.
If I were to register I understand I would be best to register as an Einzelfirma. However is this really necessary? I am keeping records and declared my income on my tax return anyway.

Also if I do register as an Einzelfirma do I HAVE to also get an AHV number and make contributions to it? I understand there is a mimimum contribution but I am sure this would be more than my income. I did ask my accountant this and he said that I didn't really need to register until I was making over 50 000CHF. Would this be right?

Some other info on me:
I have young children hence why I haven't worked here before.
Came to Switzerland for my husband's job from the UK, both British.
We have B permits.
Have been here 4 years.
Most of my orders come from the UK.

Many thanks,
Mairi

NO.
well, each Kanton has different law about this but normly you do not have to, but I remember if the Umsatz(ur sals) is under 20 000Sfr, you do not need to register GmbH or something.
you just need a letter from the lawer and the Handelsamt where you live...

The simplest thing to do is register as self-employed at your local tax office. You pay your own pension/unemployment benefit and complete Hilsfsblatt A with your annual tax form to claim expenses...

(There are previous threads on this here - just use search)

Thank you. I have tried searching and have found all I want to know about how to register as a sole trader, but I don't know if it is legally required or not.
I really don't want to be paying into a pension or unemployment benefit as I simply don't have enough money to do that. If I started doing that I wouldn't have enough money to buy new stock etc. which would just be counter productive.

Also I noticed that most of the threads said that it didn't cost to register as Einzelfirma but then one reply said that it did in fact cost a bit, so I am just wondering who is right? I suppose it would be best just to talk to my Gemeinde, I'm just a bit worried that I have done something illegal already and will get into trouble if I tell them who I am!

Hi Mairi

I'm certainly no expert on this matter, but I can tell you I registered as an Einzelfirma earlier this year and it was not free. From memory it cost me between CHF250 - 300.
Whether you actually need to register I can't say.

Jon

www.have-a-go-flyfishing.com

Thank you Jon, that is very helpful.
Money I don't have at the moment

Mairi

If you have an income, you are liable for income tax - wherever you live. If your income is low and you have expenses to offset against it you may well pay little or no tax.

Registering as self-employed is free and the pension/unemployment contributions are a legal necessity and are based on your net income after expenses, so can be quite low.

From what you describe an Einzelfirma is overkill...

Ah, thank you AbFab, I think I have my Einzelfirma and self employed mixed up then. What is self employed in German?

I have been declaring my income or lack of it on our tax return anyway. But my income is so low that after expenses it is in minus figures! However I am hoping that will change.

sorry,

is it possible to register Einzelfirma as "trade mark" like as for sole proprietorship in USA ?
For example - Einzelfirma "Microgen" ? And open bank account with this name?

and, as foreign proprietor, am I obliged to pay the tax namely in Switzerland?
I know for Kommanditgesellschaft - Societe en commandite - Societa in accomandita
it is not problem!

There are a few things getting mixed up here.

Firstly, there is the concept of Einzelfirma. This is basically the term used for self-employed in the singular, as in the sole trader generates their own income against their own professional risk and of course liability. This is different to when there is a company involved in that the liability is limited to the capital paid in (usually) or to a partnership where the liability is shared unless one or more of the partners is insolvent...

So in your situation you are both the owner of an Einzelfirma and are self-employed depending on which you prefer.

Legal obligations, there are a few that you need to take note of.
Registration - what does registration mean?
There is no need to register at all at the Handelsamt ie company register, although this would be advisable if your income increases substantially. Registration basically places you on a register of businesses and costs between 150 and 1000 francs depending on what you are registering and where. The lower figures being for sole traders and the upper for companies.
Registration at the local Gemeinde to say you are going to be self-employed is a must if you have no other income. Only so will you be liable for AHV...

AHV/IV/EO - you MUST register for this if you generate an income and you MUST pay a minimum of CHF 445 per year. This is the minimum amount possible.
Your accountant or whomever it was suggested you only pay above 50K. This is not true. Above 53,100 the full deductions are due ie 9.5% whereas below this there is a table of rates reducing until 8900, below which there is a flat rate CHF 445 to pay per annum I might add...

As self employed there is NO obligation to pay into a pension fund other than the AHV ie state pension.

As self-employed there is NO obligation to pay unemployment benefit - after all you are not entitled to it anyway...

Clearer?

Hi Richard,

Thank you very much! That is very helpful, exactly what I needed to know.
Better get myself down to the Gemeinde then and find 445CHF!

Mairi

You'll be billed quarterly - so you won't need to find it all at once...

Oh, that is a relief, thanks!

No, it is not. An Einzelfirma needs to have your name in the firm name. What you are looking for is a GmbH or AG. This is a legal entity that can enter into contracts, open bank accounts, etc. in its own name.

You can't be a foreign proprietor of an "Einzelfirma" since you need to live in Switzerland. Kommanditgesellschaft is different as long as you are a Kommanditist (limited partner) you should be able to reside outside CH (tbc) if there is a Swiss unlimited partner.

For the tax question there is no general answer. It depends on the country you live in and on the double taxation agreement that country has with CH. You either get yourself a copy of that and check or - if you are not familiar with reading legal texts - you better ask a tax advisor.

OK, I understood! The situation is the next. My frend (and collaborator) live in France and work in Swiss (everyday), i.e. he has permit. He want open consultant company in Swiss - Einzelfirma.
All business with clients will be abroad. It seems it is not problem. But problem we want
very short and simple bank account. For example. Name of Enzelfirma is
"Microgen of Engelgardt, and Bariko advanced consulting" (phantasie is not prohibited, the last name is included). Apropriate account name very, very long! Is there possibility
to name account simply: Microgen ?
Thanks for your comments!

Don't know - ask your bank. My guess is no. My second guess is you won't be able to register the Einzelfirma if you don't have an address in CH. It sounds like the best you could do in your situation is to start a GmbH which pays a salary to both of you. Then you're also free to name if whatever you like (as long as there's no other with a very similar name, of course).

Hello, sorry for butting in on this thread... I think this is a problem. If your Friend lives in France then he is not domicile in Switzerland and therefore cannot have an L, B or C permit. As such he cannot open an "Einzelfirma" in Switzerland.

As for the Bank the account must represent the company or person - RKYC regulations. Any attempt to disguise the name of the company is therefore not permitted. Small changes would be no problem eg Besten Maler Meier 2008 aus bergdorf -> Maler Meier Bergdorf. But the name must stay in. ie while Fantasy is not prohibited it is if that is all that is left... Note Websites must not include the company name... ie Bäckerschmidt cannot be www.bäckerschmidt.ch

I just received answer from Zug - it is possible to open Einzelfirma in our variant (France-Swiss). I hope it is not mistake. About account name I believe you are right.
In theory to minimize all charges and taxes and open appropriate good company name
Kommanditgesellschaft of Einzelfirma with any abroad company may be open. But it is theory yet. I am agree internet name is not problem!