Industry
Starting a trade business
Trades in Switzerland are heavily shaped by proof of qualification, collective agreements and cantonal licences. A master craftsman or professional exam is mandatory for many trades.
Legal form
Sole proprietorship for solo tradespeople with low material use. LLC once you have employees, large orders or need to pre-finance materials.
Capital need
CHF 30,000 – 150,000. Vehicle, tools and pre-financing of materials are the largest items.
Regulation
What you need to know
Certificates of competence
A cantonal licence (e.g. VSEI, SVGW) is mandatory for electrical, plumbing, heating and gas installations. SIA standards apply to construction.
Collective agreements
The construction and metalwork collective agreements etc. are generally binding – minimum wages, holidays, insurance.
SUVA
Trades are mandatorily insured with SUVA. Premium 2–6% of payroll, depending on risk class.
Construction lien
Secures outstanding claims for work done. Deadline: 4 months from completion – don't miss it.
Cost blocks
Where the money goes
Vehicle
Second-hand commercial vehicle CHF 15,000 – 40,000; leasing 400–800/month.
Tools & machines
Basic equipment CHF 10,000 – 80,000 depending on the trade.
Deposit & insurance
Contractor's deposit (5–10% of order value), general liability from CHF 1,000+/year.
VAT & tax
Tax specifics
Construction services are subject to the standard VAT rate of 8.1%. Subcontracting for foreign clients has complex tax rules – professional advice recommended.
Practical tips
What experienced founders do differently
- Negotiate progress payments (30/40/30 or 20/40/40) – never rely solely on the final payment.
- Report staff posted from abroad (SECO notification procedure) in time – 8 days' notice.
- SIA contracts (Standard 118 for construction) protect you as a contractor – handshake deals in trades are risky.