Entrepreneurship

Self-employed individuals in Switzerland must know tax regulations precisely in order to effectively minimize their tax burden. Documentation of business expenses and losses is crucial for successful financial management.

Switzerland offers a favorable environment for company formation, even without residence in the country, with requirements such as local managing director and company headquarters. Thorough planning and expert advice are essential to overcome legal and administrative hurdles.

Max, a passionate photographer, takes the step into self-employment as a wedding photographer with a sole proprietorship. For bookkeeping, a simple income-expense statement suffices as long as his revenue remains below CHF 500,000.

Entrepreneurs face various risks such as operational disruptions, competition, reputation and financial problems. They must be prepared to manage these risks through early detection and preventive measures.

Swiss companies must retain business documents for ten years in accordance with the Code of Obligations and tax laws. Non-compliance can be punished criminally with fines or imprisonment.

Joint-stock companies must maintain an internal control system (ICS) according to the Code of Obligations, which supports risk management and is audited by the audit office. The ICS serves the effective and efficient handling of business operations and the assurance of compliance with laws.

AI is now being discussed as a digital member on boards of directors, with the relevance varying according to business model and industry specifics. The debate encompasses economic, legal, and ethical aspects, with the use of AI remaining controversial.

The Federal Council is planning an inheritance law reform to facilitate business succession in family-owned companies, to secure SME stability and jobs in Switzerland. The revision includes measures such as integral assignment and payment deferrals for successors.

Family businesses in Switzerland, such as Roche and Swatch, promote their success through specially tailored family constitutions that serve as codes of values and conduct. These constitutions help prevent conflicts and pursue uniform goals by pooling interests and establishing common principles.