Many entrepreneurs favor sole proprietorship. From a legal point of view, this form is recommended when only one natural person is involved in a commercial activity.
A sole proprietorship is ideal for business activities which are closely linked to the owner. People from the so-called "liberal professions" or local trading companies often opt for this legal form. The "liberal professions" include, for example, architects, engineers, lawyers, notaries, auditors, doctors and pharmacists.
Simple registration procedure
A sole proprietor business is very simple to set up. It can therefore start operating quickly with limited start-up costs. In theory, the only obligation is an entry in the trade register. The payment of a basic fixed capital is not compulsory, and double taxation of profits can be avoided.
As far as social insurance is concerned, it should be pointed out that sole proprietors generally have the status of self-employed workers. They are therefore largely responsible for their own benefit plans.
In order to obtain self-employed status, entrepreneurs may submit an application to the OASI fund in the area in which their business is based. The terms under which this status is granted vary depending on the sector. The fund will examine the application and will request any necessary supporting documents. The Swiss National Accident Insurance Fund (SUVA) is responsible for granting self-employed status in the building sector (painters, masons) and the transportation sector (taxi drivers for example). Founders may only submit an application to the OASI fund in the area in which their business is based once the go-ahead has been received from the SUVA.
