After 5 years at a salaried job in Zurich, I quit to start my own business in October 2012. I transferred the money from my 2nd pillar pension account into a "Freizugigkeitskonto" or vested benefits account with ZKB.

My understanding was that I could then invest this money in my business. I didn't need to do so immediately because I had other savings, but recently I decided it was time to use that money.

However, when I called ZKB they told me that:

1. you can only invest in an Einzelfirma. (Unaware of this requirement, I created a GmbH in July 2013.)

2. there's a time limit of 1 year from creation of the Freizugigkeitskonto.

So now I'm slightly panicking that I might not be able to use this significant amount of money that I'd been counting on.

The most direct solution to problem 1 would be to dissolve the GmbH and revert to being considered an Einzelfirma. This would be easy-ish since I have no employees, but doesn't solve problem 2.

So my plan is:

* Open a pension plan for my GmbH, transfer the money into it
* Immediately dissolve the GmbH and pension plan, transfer the money into a new Freizugigkeitskonto
* Transfer the money to my personal account, as an Einzelfirma investment
* Re-create the GmbH

Does anyone know if this would work? I've asked my accountant about it a couple of times, but they were bewildered by this apparently unusual situation and haven't been able to give me any useful advice.

Can you not raise funds any other way? Not having a pension isn't the best idea. I was tempted to do a similar thing but got talked out of it, which I am glad about now.

Maybe, but raising investment from others would come with strings attached which I'd prefer to avoid if possible.

The funds represent 5 years of income, and I'm only 30 so I have a while before retirement. Also, I have to admit I don't really trust a pension fund to survive the next 35+ years, and I think I would prefer to invest the money myself. It's not an easy choice though, for sure.

I quickly had a look at the conditions to create a new such account at ZKB and found this:

6 Auflösung der Vorsorgevereinbarung
Der Vorsorgenehmer kann die Vorsorgevereinbarung im Rahmen der gesetzlichen Auflösungsgründe vorzeitig beenden.

[Google Translated: 6 Resolution of the pension agreement
The Client may terminate the precautionary arrangement under the statutory grounds for dissolution prematurely.]

There is nothing mentioned about waiting for 1 year, however, there are usually conditions like that, check the contract you have signed.
But this statement in itself is simply not true: "1. you can only invest in an Einzelfirma."

However, this are the conditions which must be met that you can use the money for your own company (sry, I do not have an English version): http://www.bsv.admin.ch/themen/vorso...sprungmarke0_6

Kann ich mein BVG-Altersguthaben beziehen, um mich selbständig zu machen?
Ein Barbezug der Austrittsleistung ist möglich, wenn die Person eine selbständige Erwerbstätigkeit aufnimmt und nicht mehr der obligatorischen beruflichen Vorsorge untersteht. Die Person muss der Vorsorgeeinrichtung den Nachweis erbringen, dass sie eine selbständige Erwerbstätigkeit aufnimmt (Miete für Räumlichkeiten, Materialkauf, AHV-Bestätigung, Eintrag ins Handelsregister, usw.). Der Antrag für den Barbezug muss im Jahr nach Aufnahme der selbstständigen Erwerbstätigkeit bei der Vorsorgeeinrichtung eingereicht werden. Bei verheirateten Versicherten wird die schriftliche Zustimmung des Ehegatten verlangt.

[Google Translated: Can I use my BVG retirement savings relate to start my own business?
A cash withdrawal of the termination benefit is possible if the person becomes self-employed and no longer is subject to obligatory pension. The person must be of the pension plan provide evidence that they have a self-employment takes (hire of rooms, material purchase, AHV confirmation entry in the commercial register, etc.). The request for cash withdrawal must be submitted in the year after commencement of self-employment in the pension fund. For married insured the written consent of the spouse is required.]

Keep in mind, when you use this money, then you will have to pay taxes, so you do not get 100% of the amount on your account.

A lot of Information can be found here (not in English): http://www.bsv.admin.ch/vollzug/docu...y:158/lang:deu

From bsv.admin.ch:

Der Antrag für den Barbezug muss im Jahr nach Aufnahme der selbstständigen Erwerbstätigkeit bei der Vorsorgeeinrichtung eingereicht werden.

[Google Translated: The request for cash withdrawal must be submitted in the year after commencement of self-employment in the pension fund.]

This suggests a one year limit. Perhaps I could claim that the GmbH foundation was the start of self employment?

However, both ZKB and my accountant agreed that a GmbH could not receive the investment as it is a "Kapitalfirma", like an AG.

Thank you for the reminder about taxes! They're somewhat inevitable though, I just pay a bit more for using the money now. Since I had near zero income in 2013, perhaps I will have a low tax rate for 2014, so this might be a good year to take the fund as income. My understanding of these issues is very limited though.

The problem with the GmbH is that you are not independent (as you would be with an "Einzelfirma"). You are regarded as an employee of the GmbH and, depending on how much the Gmbh pays you, must make pension fund contributions.

About " to dissolve the GmbH and revert to being considered an Einzelfirma. " - have you looked at the possibility of running an einzelfirma in parallel with your GmbH?

I know nothing of this, but I guess you form your Einzelfirma, take your pension money, loan it to the GmbH at a preferable interest rate, sell you own services to the GmbH, of course leaving the GmbH with any liabilities/debts which may arise in the business....

The company needs 20k of capital.......towards those liabilities. Whilst the money can be used for business purposes, if it's given back to the OP then it's taxable income. Setting up & dissolving a company will waste lots of money.

There is this from the ch.ch website:

Early withdrawal when becoming self-employed
You may also draw on your pension if you become self-employed and no longer need to pay into a compulsory pension plan.

"What you need to do
You must provide proof to the pension company that you are self-employed, such as a rental agreement for office space, purchase of material, AHV confirmation, entry in the commercial register, etc. You must submit your request with the pension company in the year after you become self-employed. Married persons must provide the written consent of their spouse (the same applies to persons in registered partnerships)."

I don't know, but I suspect the authorities might look closely at a GmbH who suddenly has a pension plan and then closes down. I also doubt that transferring funds from the Einzelfirma to a new GmbH would meet the criteria for taking the funds out of the account in the first place. I'd talk to your cantonal tax authorities about this, if your accountant doesn't seem able to provide an answer.