What tax and social security requirements do I need to consider?

The legal form you choose has significant tax implications. If you're a sole proprietor or a partner in a partnership, your company's profits will be subject to personal income tax, whereas a corporation (e.g. a limited liability company or public limited company) is itself liable for tax.

For social security purposes, owners of a limited company (AG/GmbH) are considered employees of their own company. In addition to OASI/disability/loss of earnings insurance and unemployment insurance, affiliation with a pension fund and accident insurance is compulsory. However, daily sickness benefit insurance and supplementary accident insurance are voluntary.

Owners of sole proprietorships or partnerships may voluntarily join a pension fund under certain conditions. If you take advantage of this option, you'll only be able to pay the reduced maximum amount of CHF 7,258 (as of 2026) into pillar 3a. However, you'll be able to make additional pension fund savings contributions and voluntary pension fund buy-ins, alongside pillar 3a. As a rule, you'll save more tax than if you made the large pillar 3a deposit of a maximum of CHF 36,288 for self-employed people without a pension fund. You can systematically save assets for retirement and additionally insure yourself and your loved ones against disability and death at the same time.