One way to get around the one client situation is to contract with your client via an agency that has an agreement with the tax people that their "bodies are considered self-employed; of course, they take a %ge so it is not the best solution.

As somebodyelse mentioned if you are not considered self employed & you only have one client outside the country then what is your tax status; I mean, for example, who pays the "employer side" AHV.
Or can your client pay your fees into a bank outside Switzerland & then would your income be considered non-Swiss taxable?

Marton

Melitta, Goldtop, Groovy: Thanks a lot for all the helpful information.

In the end I decided to go with the GmbH structure due to the fact which you correctly pointed out and i confirmed elsewhere: I can't have self-employed status without the 3 separate clients, which i won't have.

Running through these replies I don't see something which is key: this varies from one canton to another! It's dead easy in Vaud - you just register for an AVS number and tell them you're self-employed, but in Geneva you have to present a business plan, evidence of bills sent to a number of clients, etc. Check with the AVS office in your commune, to start. They'll point you to the right cantonal authorities.

I live in Zurich, so have the same situation as Miller, but opted to try to find new clients rather than the Gmbh structure. I have got the second one already, now need to find a third one...

The information on this thread has been extremely helpful. While my husband has paid a Swiss tax accountant to give me recommendations, he only recommended Gmbh, but didn't have the time to explain the pros and cons, ins and outs of each structure, I learnt a lot here. Thanks very much, everyone!!!

If employer does not pay AHV share, then employee must pay both employee and employer share.

Residents in Switzerland are taxable on their global income. Irrelevant where the revenue source is. Irrelevant where the Bank is.

The GmbH structure, rights and duties are well defined. Hence the professional preference for it. The self-employed status appears simple but can become very messy.

I have been reading through these threads and I think I am more confused than anything now! It would be great if someone could help me out.

Here is my situation: I am looking to freelance from Switzerland for ONE client located in Canada. I will virtually have no expenses. What is the easiest way to go about setting up this tiny business? Or is there anything to be done at all? If it makes any difference, I am a Swiss citizen.

It would be great if someone could point me in the right direction. Thanks!

If you are Swiss, declare yourself self-employed with the AHV and get on with it. There is no real reason to worry about forming a company and you have no permit issues. In reality you don't even need to register at the "Handelsregister" seeing as you are not marketing yourself within Switzerland.

Just do it!

Thanks Richard! Can you elaborate on what you mean when you say I don't need to register at the "Handelsregister". What is "Handelsregister"?

So, assuming I register at the AHF and all goes well, is there anything special I need to do in terms of billing my client? i.e. taxes, insurance, etc? Do I have to deposit the money into a business account or will my own personal account be fine?

Thanks

Handelsregister = Cantonal Registrar of Companies.

Proper bookkeeping is highly advisable. That is simpler if you have a separate account for professional activities.

Given the 1 client issue, it looks like a GmbH would be more suitable for my situation.

How little can one spend on setting up (and maintaining) a legal and functioning Zug GmbH?

Can someone explain to me what the "1 client issue" is? Is it that you cannot be a sole trader if you have more than one client and you therefore need a GmbH? Thanks.

If you only have one client the Swiss tax people may not accept that you are a sole trader/self employed

Ok....so what should I do seeing as I only have one client? I just picked up the form from the AHF today.

I would have thought it depends on your business model. If you are planning to have more than 1, then soletrader would be the simple route, and you would have to convince them this is your plan. The nature of the business, would make this fairly easy to see.

eg, if you have a shoe polishing stand, but only have 1 customer coming by each week, that is probably not your intention!

I think what we are describing as the '1 client' rule is a preventative measure they have in place, and is open to some common sense (where luck comes in), interpretation.

Ok...but I am really only intending on having one client. This is just going to last a few months and I won't be making loads of money (under 50,000CHF for sure). What should I do? Thanks!

Good question. That must be a fairly common situation. I'll leave that one to the experts on here...

You need not do anything special!

If the AHV authorities do not recognize you as "self-employed", then you pay AHV at the normal rate instead of the reduced rate for "self-employed". Your "client" should make the deductions on your behalf.

Roughly, what is the reduced rate? vs 5% employee + 5% employer..

The official fees (Notary, Registration, etc.) would be about CHF 1'000.00. The rest you can DIY if you know how or friends help you. Otherwise, you will have lawyer's and accountant's fees, which can be another 1'000 or more.