Case study on a service provider

If he/she generates an annual turnover of less than CHF 100,000, this entrepreneur will not be liable for value added tax.

Who creates what?

A Swiss citizen opens a consultancy and communication firm.

Scope of activity

Mainly non-profit making organizations wishing to extend their corporate activities.

Chosen legal form/financing

The entrepreneur running the consultancy and communication firm launched the business independently. He/she has had to invest very little and works for his/her clients on a contract basis. The legal form of sole proprietorship has therefore been chosen.

The entrepreneur must particularly take the following points into consideration:

Legal form

As sole founder and consultant, the entrepreneur does not need to make a major investment. He/she can therefore carry sole liability for the firm. It is on these grounds that he/she has chosen the form of sole proprietorship. He/she is aware that by choosing this form, it may be necessary to cover the firm's debts with his/her personal assets. From a legal point of view, it is not possible to separate personal assets from business assets in a sole proprietorship.

Trade register

The entrepreneur generates an annual turnover of less than CHF 100,000 with the sole proprietorship and therefore is not obliged to register the business with the commercial register (Art. 36 ORC). He/she does, however, register the firm in order to enhance its reputation and to protect the name (corporate name). Once a business has been entered in the commercial register, there is an obligation to keep proper accounts. Furthermore, the entrepreneur is subject to debt collection under bankruptcy proceedings rather than by way of seizure.

Value Added Tax

The entrepreneur budgets for an annual turnover of CHF 95,000. The firm is therefore not subject to value added tax (Art. 10 LTVA). The entrepreneur may, however, register for this tax voluntarily.



If you wish to establish a firm providing consultancy and communication services, simply follow the "Nine Steps to Setting up Your Own Business":

Last modification 15.02.2020

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