How Can Foreign Citizens Work as Self-employed in Switzerland?
Different rules apply to foreign workers, depending upon their country of origin. People from the EU/EFTA benefit from easier access to the Swiss labor market compared to those from third countries.
When is a person considered to be self-employed?
From a social security perspective, workers will be considered self-employed if they work in their own name and on their own account, are independent in their work and carry the business risk themselves. Self-employed workers are responsible for their own organization, working methods and the transfer of work to third parties.
Anyone who is a sole proprietor or a partner in a general partnership is considered to be self-employed.
Those working in a company limited by shares (AG) or a limited liability company (GmbH) are formally employed and are therefore normally considered to have employee status. However, in respect of their work permit application, they will be treated based on the economic circumstances. If an employee of an AG is also the sole shareholder and board member, the law relating to foreign nationals will view this as self-employment.
If someone holds a position comparable to an employer, they will be considered as self-employed.
This generally applies to all people who take decisions on behalf of a business, or who significantly influence it in their position as a partner, a shareholder or a member of the management.
Self-employed EU/EFTA citizens
Citizens of EU/EFTA member states can normally relocate their place of residence to Switzerland to work on a self-employed basis here. To do this, they must be able to evidence their self-employed status and demonstrate that they have sufficient financial means to finance their stay in Switzerland. In addition, they must have insurance against illness and accidents.
Strict requirements for non-EU/EFTA nationals
There are strict conditions for self-employment permits for those from third countries and these are restricted by quotas.
Generally, non-EU/EFTA citizens will only receive a work permit if they have particular qualifications.
Managers, specialists or other qualified professionals are considered to be suitably qualified - normally those with a degree from a university or an institution of higher education, as well as several years of professional work experience.
In addition, citizens of third countries wishing to work on a self-employed basis in Switzerland must provide a business plan to the relevant authorities. They must demonstrate that they can achieve an income level which will cover their operating costs, as well as their living expenses.
Additionally, the planned business activity must be in the overall financial interests of Switzerland.
The responsible authorities have a great deal of discretion in evaluating this criterion.
Regulated activities
Finally, alongside the legal provisions relating to foreign nationals, domestic regulations governing the planned activity must be observed.
Many jobs and professions, for example in the areas of finance or health, are strictly regulated and require a permit or specific training. It should be noted that, depending upon the activity or industry, either the federal government or the canton is responsible for regulation and also that the cantonal rules can vary widely. It is therefore important to consider at an early stage how and where to establish oneself and work on a self-employed basis in Switzerland.