Einzelfirma vs GmbH: when to switch and what changes
Updated · 2 sources
Direct answer
Start as an Einzelfirma if you are alone, low-risk and testing demand: it costs nothing, but you are personally liable and pay self-employed AHV on the whole profit. Switch to a GmbH (CHF 20,000 capital) when contracts, employees or debt put your private assets at risk, or when leaving profit in the company beats being taxed on every franc of profit personally.
Key facts
- Einzelfirma: CHF 0 capital, unlimited personal liability, profit taxed as your personal income
- GmbH: CHF 20,000 capital, liability limited to company assets, you become your own employee
- Self-employed AHV/IV/EO: sliding scale up to 10.00% of profit, no ALV cover, no mandatory BVG
- No law forces a switch at a profit level; Commercial Register and VAT duties start at CHF 100,000 turnover for both
Side by side
| Einzelfirma | GmbH | |
|---|---|---|
| Start capital / cost | CHF 0, no deed | CHF 20,000 paid in + notary |
| Liability | You, with all private assets | Company assets only |
| Social insurance | Self-employed AHV up to 10%, no ALV, BVG voluntary | Employee status: AHV/ALV, BVG above CHF 22,680 |
| Tax | Entire profit is personal income + AHV on profit | Company profit tax; your salary taxed personally, dividends partly |
| Name on register | Only from CHF 100,000 turnover | Always, owners public on Zefix |
When the switch pays
Three triggers matter more than any profit threshold. Risk: one client claim or lease can reach your house as an Einzelfirma, and cannot as a GmbH. People: hiring or taking a co-founder ends the one-person form anyway. Money retention: as an Einzelfirma every franc of profit is taxed and AHV-charged in the year it arises, even if it stays in the business bank account; in a GmbH undistributed profit is taxed once at company level and your salary is a cost.
Against that stand real costs: notary and register fees, stricter bookkeeping and annual statements, payroll for yourself, and the CHF 20,000 that must be paid in (though it stays your company's money). Founders who switch 'for the image' at CHF 30,000 of side income usually buy admin, not protection.
FAQ
- At what profit must I switch from Einzelfirma to GmbH?
- Never by law. Duties that do start at CHF 100,000 turnover (Commercial Register entry for the Einzelfirma, VAT for both) are not a switch trigger. Switch when liability risk, hiring, co-founders or profit retention outweigh GmbH admin costs.
- What AHV do I pay as self-employed?
- A sliding scale on business profit up to a maximum of 10.00% for AHV/IV/EO (2026), plus family-allowance contributions. There is no unemployment insurance (ALV) for the self-employed, and occupational pension (BVG) is voluntary, which is why the Pillar 3a limit without a fund is higher.
- Can I convert later without starting over?
- Yes. A sole proprietorship can be transferred into a newly founded GmbH as a contribution in kind or asset transfer, keeping contracts and the business going; the notary and tax treatment of hidden reserves need advice in the specific case.
- Is a GmbH more credible with clients?
- With larger Swiss companies and public buyers, often yes: register entry, published owners and company liability simplify their supplier checks. With private clients it rarely decides anything.
Related guides
- Einzelfirma vs. GmbH vs. AG: choosing a Swiss company form in 2026Switzerland's three main company forms are the Einzelfirma (CHF 0 minimum capital, unlimited personal liability, Commercial Register entry mandatory at CHF 100,000 turnover), the GmbH / Sàrl (CHF 20,000 minimum capital, company-only liability, partners public in Zefix), and the AG / SA (CHF 100,000 share capital with at least CHF 50,000 paid in, company-only liability, private shareholders).
- Swiss VAT rates in 2026: 8.1%, 2.6% and 3.8%Switzerland has three VAT rates in 2026: 8.1% standard, 2.6% reduced and 3.8% for accommodation. They have applied since 1 January 2024.
- How to start a GmbH in Switzerland: 7 steps, cost and timelineTo start a Swiss GmbH you need CHF 20,000 capital paid in full into a blocked capital deposit account, a notarised deed of incorporation, and entry in the Commercial Register (Handelsregister), which is what makes the GmbH a legal person. The sequence name check → articles → capital account → notary → register takes days to a few weeks; at least one authorised signatory must live in Switzerland.