Starting your self-employed activity: essential administrative steps

Before starting: checking the prerequisites

Before launching into the self-employed steps in Switzerland, a few checks are necessary. You must have a domicile in Switzerland and, if you're a foreigner, a valid work permit (B, C or L depending on your situation).

Certain professions are regulated and require specific authorisations: health, finance, transport, security, etc. Check with your canton whether your activity requires an operating licence before any registration.

Step 1: Register with the AHV compensation fund

AHV registration is your very first mandatory step. You must register with your canton's compensation fund within 30 days of starting your self-employed activity.

This registration is a priority as it triggers obtaining your IDE number and determines your social security contributions. Identify your cantonal fund on the AHV website and make contact quickly to avoid any delay.

Which documents to prepare

For your AHV registration, prepare a complete file with the following elements:

• Valid identity document (identity card or passport)

• Detailed description of your professional activity

• Income forecasts for the first year

• Professional bank details

• Work permit if you're a foreigner

A complete file speeds up the processing of your application and saves you unnecessary back and forth.

Social security contributions: what you need to know

As a self-employed professional, you pay AHV/IV/APG contributions representing approximately 10% of your annual net income. The calculation is initially based on an estimate, then subject to adjustment once your actual income is known.

Plan for these charges in your cash flow from the start. These contributions are non-negotiable and are added to your taxes. Underestimating these amounts is one of the most common mistakes when starting out.

Step 2: Obtain your IDE number

The IDE number (Enterprise Identification) is your unique 9-digit identifier for all your administrative procedures. It begins with CHE and must appear on your invoices.

You obtain it automatically after your AHV registration, or when you register in the commercial register. This number is essential for invoicing, VAT declarations and any official communication with the authorities.

Step 3: Register in the commercial register (or not)

Registration in the commercial register is not always mandatory. It becomes so if your turnover exceeds 100,000 CHF per year or if you use a business name (other than your personal name).

For a sole proprietorship under your own name with a turnover below 100,000 CHF, registration remains optional. You can start without this step and complete it later if necessary.

Mandatory or optional registration?

Registration becomes mandatory in these situations:

• Annual turnover exceeding 100,000 CHF

• Use of a business name (e.g. "Consulting Plus" instead of your name)

• Creation of a company (Sàrl, SA, etc.)

Below this threshold and under your personal name, you can do without it initially. This simplifies your procedures and reduces your start-up costs.

Costs and procedures

Registration in the commercial register costs between 150 and 200 CHF depending on your canton. The procedure is done at the cantonal commercial register office of your headquarters.

Processing generally takes a few days. You then receive an official extract from the commercial register that you can present to banks and business partners to establish your credibility.

Step 4: Manage VAT

VAT becomes mandatory from 100,000 CHF annual turnover in Switzerland. You can also register voluntarily from 50,000 CHF to recover VAT on your purchases.

Registration is done with the Federal Tax Administration (FTA). To understand everything about rates, declarations and obligations, consult our complete guide on VAT in Switzerland.

Are you concerned?

Here are the VAT liability thresholds:

• 100,000 CHF: mandatory registration for services in Switzerland

• 50,000 CHF: voluntary registration possible

• Special cases: services abroad, service imports

Calculate your projected turnover to determine whether you must register from the start or wait until you reach the threshold.

Register and declare

Registration is done via the FTA portal. You'll need to choose your accounting method: effective (actual VAT), net tax rate (flat rate by sector), or flat rates.

You then declare VAT quarterly or half-yearly depending on your turnover. Our detailed article on VAT guides you step by step through these procedures.

Step 5: Set up your invoicing

Compliant invoicing from the start saves you complications. In Switzerland, your invoices must include mandatory information and, since 2020, integrate a QR code for payments.

Choosing a suitable tool is essential. BePaid allows you to create compliant QR invoices in a few clicks, with automatic management of legal mentions, numbering and payment tracking. Free version available to get started.

Mandatory information on your invoices

Each invoice must contain:

• Your complete contact details (name, address)

• IDE number (CHE-XXX.XXX.XXX)

• VAT number if you're liable

• Clear description of services or products

• Compliant payment QR code

• Unique and sequential invoice number

A non-compliant invoice can be refused by your client or cause problems during a tax audit.

Choose your invoicing tool

Favour a tool that guarantees QR invoice compliance, offers a simple interface and evolves with your activity. Price also matters when starting out.

BePaid is designed for self-employed professionals: free version up to 10 invoices to test, then 20 CHF/month in Premium. You manage invoices, clients, automatic reminders and VAT from a single platform, without unnecessary complexity.

Step 6: Organise your accounting

Even as a self-employed professional, you have accounting obligations. You must keep a record of your income and expenses, keep all supporting documents for 10 years, and strictly separate personal and professional finances.

Depending on your turnover and legal form, you'll need to keep simplified or complete accounts. For complex questions, call on an accountant or a fiduciary.

Legal obligations

Here's what the law requires:

• Record of income and expenses (simplified accounting below 500,000 CHF turnover)

• Retention of all documents for 10 years

• Annual tax return with income statement

• Double-entry bookkeeping above 500,000 CHF

These obligations are non-negotiable. A tax audit can occur at any time.

Tools and best practices

Open a dedicated professional bank account from the start. Systematically file your invoices and receipts. Perform regular exports for your accountant.

BePaid facilitates this tracking with compatible accounting exports and bank reconciliation to verify your receipts. The tool doesn't replace an accountant, but it considerably simplifies the preparation of your financial data.

Step 7: Take out necessary insurance

Some insurance is mandatory, others strongly recommended. If you hire employees, accident insurance (LAA) becomes mandatory. The LPP (2nd pillar) remains optional for self-employed professionals, but strongly advised for your pension provision.

Depending on your profession, professional liability insurance may be essential (consulting, health, construction). Loss of earnings insurance protects your income in case of illness or accident.

Common mistakes to avoid

Here are the classic pitfalls for self-employed professionals starting out:

• Forgetting AHV registration or doing it too late

• Underestimating social security contributions (10% of net income)

• Mixing personal and professional accounts

• Neglecting VAT and being caught out at the threshold

• Invoicing without a compliant QR code

• Not planning cash flow for social security and tax charges

Anticipate these points from the start to avoid stress and penalties.

Summary checklist: your steps at a glance

Week 1:

• Check prerequisites (permits, authorisations)

• Registration with the cantonal AHV fund

Week 2-3:

• Obtain the IDE number

• Registration in the commercial register if necessary

Month 1:

• VAT registration if turnover > 100,000 CHF expected

• Set up invoicing (compliant tool)

• Organise accounting (professional account, filing)

• Take out necessary insurance

Resources and useful links

For your official procedures:

• Cantonal AHV funds: www.ahv-iv.ch

• Commercial register: Cantonal offices (search by canton)

• Federal Tax Administration (VAT): www.estv.admin.ch

• Cantonal SME offices: Free advice and support

For your compliant invoicing, test BePaid for free: 10 invoices offered to start without risk.

Starting a self-employed activity in Switzerland involves several essential administrative steps: AHV registration, obtaining the IDE number, possible registration in the commercial register, VAT management if your turnover exceeds 100,000 CHF, and setting up compliant invoicing. These steps may seem numerous, but they are essential to operate legally and with peace of mind.

Administrative organisation doesn't stop there: you'll also need to keep rigorous accounts, issue invoices with mandatory legal mentions, and track your payments. This is where a suitable tool makes all the difference.

BePaid simplifies invoicing from the start. Create your QR invoices compliant with Swiss standards in a few clicks, manage your clients, track your payments and automate your reminders. The free version allows you to start without commitment with 10 invoices and 5 clients. Create your free account and focus on what really matters: developing your activity.