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Old 31.05.2010, 16:29
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Re: Working as Freelancer from Home

Thanks for the useful information. What I am struggling to understand is the difference between running a business and supplying services. So please help me by answering the question:

Given:

1. You as a GmbH (after reading some comments, my wife is seriously thinking about founding a GmbH) take software development work from a well-established Switzerland-based AG company.
2. The GmbH has one employee: You

So is it running a business or supplying services? I really am unable to differentiate between the two.

Furthermore, when you say "The best idea would be to operate via an agency or one of these invoicing firms", does it still apply when you have your own GmbH?

Thanks for your time.

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While most of what you say would work out fine if your wife was running a business as opposed to supplying services.

When it comes to supplying services there are a lot more rules and regulations involved because the government wants to ensure that the customer is not just using this arrangement to avoid their social responsibilities.

For instance the AHV will not accept your registration unless you can show them that you are running a real business with respect to business risks, multiple concurrent customers etc... and without this registration her potential customers would be held responsible for AHV payments and pension contributions.

For this reason most companies will not take on software engineers directly as contractors unless they come via some kind of agency or have a limited company of their own.

The best idea would be to operate via an agency or one of these invoicing firms that are setup to handle the red tape involved and to give comfort to the client that they are not going to be exposed to additional payments for AHV or similar charges.

Good luck with that,

Jim
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