Setting Up a Sole Proprietorship in Geneva: Steps, Costs & AVS (2026)

To go self-employed in Geneva, you set up a sole proprietorship (raison individuelle): no minimum capital, registration with AVS social security as a self-employed person, and entry in the commercial register once you reach CHF 100,000 in turnover.

This article builds on our main guide: setting up a company in Geneva.

The sole proprietorship: the simplest legal form

The sole proprietorship (raison individuelle) is the simplest and most common legal form in Switzerland. It's ideal for entrepreneurs who want to start working for themselves quickly, without the formalities and costs of a Sàrl (LLC) or an SA (public limited company).

Key features:
• No minimum capital required (unlike a Sàrl: CHF 20,000, or an SA: CHF 100,000)
• No notarial deed needed
• A single owner (no partners possible)
• Unlimited liability on your personal assets
• No separate legal personality: the entrepreneur and the business are one and the same

The sole proprietorship is the recommended legal form for:
• Consultants and freelancers
• Tradespeople and small retailers
• The liberal professions (architects, graphic designers, translators)
• Low-financial-risk activities
• Projects in a testing phase (before a possible conversion into a Sàrl)

In Switzerland, more than 160,000 sole proprietorships are entered in the commercial register, making up a significant share of all registered businesses.

Setting up step by step

Setting up a sole proprietorship in Geneva takes just a few simple steps:

1. Choose a business name: the name must include your last name. You can add a descriptive element to it. Examples: "Dupont Architecture", "Marie Martin, HR Consultant", "Lefèvre Design". Check availability on zefix.ch (the central index of business names).

2. Register with the commercial register (RC): mandatory if your annual turnover exceeds CHF 100,000. Strongly recommended even below that, to protect your name and build credibility. Cost in Geneva: between CHF 80 (for a sole proprietorship) and CHF 160 (for a general partnership), covering fees plus publication in the SOGC (Swiss Official Gazette of Commerce).

3. Register with AVS social security: apply for self-employed status with Geneva's OCAS (the cantonal social insurance office). Provide: the registration form, a commercial-register extract, and proof of activity (client contracts, invoices).

4. Open a business bank account: not legally required, but strongly recommended to keep your personal and business finances separate. Most Swiss banks offer business accounts from CHF 5–10/month.

5. Register for VAT (if applicable): mandatory once you reach CHF 100,000 in annual turnover. Register online at estv.admin.ch.

6. Take out the insurance you need: professional liability insurance, daily-sickness-benefits insurance (not mandatory but recommended), and accident insurance (LAA, not mandatory for the self-employed).

Setup cost and ongoing charges

A sole proprietorship is the most affordable of all legal forms to set up:

Setup costs:
• Commercial-register registration: CHF 350–400
• SOGC publication: included in the registration
• No notary: CHF 0
• No minimum capital: CHF 0
• Total: around CHF 400 (or CHF 0 if you don't register with the commercial register)

Ongoing annual charges:
• AVS/AI/APG contributions: 10.0% of net income (a regressive scale applies to low incomes)
• Family allowances: 2.22% of income in Geneva
• LAMal health insurance: in your own name, CHF 550–800+/month in Geneva, depending on the insurer and the plan you choose
• Accident insurance: voluntary, around CHF 500–1,500/year (depends heavily on the activity, the insured income, and the cover chosen)
• Accounting: depending on complexity. Klear Conseils offers packages from CHF 150/month
• No unemployment contributions (the self-employed aren't entitled to them)

Compared with a Sàrl:
• Setting up a Sàrl: CHF 20,000 minimum capital, plus notary and commercial-register fees
• Sàrl charges: employer social-security contributions, employee contributions, and more complex accounting
• But a Sàrl gives you limited liability and a stronger image with clients and partners

How a sole proprietorship is taxed

A sole proprietorship has no separate legal personality. The profit from the business is taxed as self-employment income on the entrepreneur's personal tax return.

Calculating taxable profit:
Turnover
− Operating expenses
− Depreciation
− Personal social-security contributions (AVS/AI/APG)
− Justified provisions
= Net taxable profit

This profit is added to the taxpayer's other income (a spouse's income, investment income, real-estate income) and taxed at the progressive income-tax rate.

Tax advantages for the self-employed:
• Pillar 3a deduction: up to CHF 36,288 (2026) if you have no second pillar
• Deduction of voluntary LPP (occupational pension) contributions
• Deduction of actual business expenses
• The option to build provisions and book depreciation

Tax drawbacks:
• No separation between private and business assets
• Business assets are subject to wealth tax
• Progressive tax rate (no flat rate like the profit tax on legal entities)
• No salary/dividend optimization (reserved for corporations)

Pros and cons

Advantages of a sole proprietorship:
• Simple to set up (a few days, no notary)
• Minimal launch cost (CHF 0 to 400)
• No minimum capital tied up
• Simplified accounting (if turnover is under CHF 500,000, cash accounting is allowed)
• Full autonomy over decisions
• Profit fully available to the owner (no need to vote a dividend)
• Later conversion into a Sàrl/SA is possible

Drawbacks:
• Unlimited liability: your personal assets cover the business's debts
• A single owner: you can't bring in a partner (for that you'd need a general partnership, a Sàrl, or an SA)
• A less "professional" image than a Sàrl/SA for some clients
• No salary/dividend optimization
• Hard to sell the business (there are no company shares)
• Reduced social-security cover (no unemployment, optional LPP)

Klear Conseils' recommendation: a sole proprietorship is ideal for starting a low-risk activity. Once turnover passes CHF 100,000–150,000 or your financial risks rise, it's worth weighing up converting into a Sàrl.

Klear Conseils: your partner for setting up

Each year, Klear Conseils helps dozens of entrepreneurs set up their sole proprietorship in Geneva. Our Essentiel package at CHF 190 includes:

• Checking that your business name is available
• Drafting your business purpose
• Registration with the commercial register
• A complete post-setup checklist

Our Confort package at CHF 390 adds:
• A strategic consultation (choice of legal form, positioning)
• AVS/OCAS registration
• VAT support where applicable

Our Premium package at CHF 169/month includes:
• Everything in the Confort package
• 1 year of accounting included
• Full accounting onboarding
• Quarterly VAT returns

Get in touch for a free initial consultation. Together we'll work out the best legal form for your project and guide you through every step of setting up.

Frequently asked questions

Sole proprietorship or Sàrl: which should you choose?

A sole proprietorship requires no capital and is quick to set up, but you're personally liable without limit on your private assets. A Sàrl protects your wealth (CHF 20,000 in capital) but costs more to set up. In practice: go sole proprietorship to get started, then move to a Sàrl as your turnover and risk grow.

Do you have to register with the commercial register?

Registration becomes mandatory once you reach CHF 100,000 in annual turnover; below that it's optional (though often worth it for credibility).

How do you register for AVS social security as a self-employed person?

You declare yourself to the compensation fund (in Geneva, the OCAS), which then rules on your status. After that you pay AVS/AI/APG contributions at a maximum rate of 10.0% of income (a regressive scale applies), with no unemployment insurance.

How much does setting up cost in Geneva?

The formalities are inexpensive (commercial-register registration runs from tens to a few hundred francs). At Klear, support for setting up a sole proprietorship starts at CHF 190.

See also: setting up a company in Geneva · setting up a Sàrl in Geneva · choosing between a Sàrl and an SA