Starting a business before 18
Apr 17, 2025
Introduction
The Swiss economy thrives on innovative ideas and bold entrepreneurs — including young people. Starting a business at a young age offers unique opportunities for personal growth and professional development.
Key aspects of young entrepreneurship:
Early development of entrepreneurial skills
Practical experience in the business world
Building a professional network
Opportunity to realize one's own business ideas
The legal framework for minor founders differs from that of adult entrepreneurs. This article sheds light on the key steps to starting a business under the age of 18.
Requirements for minors
The legal requirements for minor business founders are clearly defined. Parental consent forms the foundation for the start of self-employment. This must be done in writing and signed by the legal guardians.
Legal requirements: what does Swiss law say?
In Switzerland, the Civil Code (ZGB) regulates the rights and obligations of minors. Minors are considered to have limited legal capacity under Swiss law. Legal capacity in the sense of the Civil Code requires a combination of judgment (Art. 16 ZGB) and adulthood (Art. 13 ZGB). Since minors have not yet reached adulthood, they can only make certain legally binding decisions with the consent of their parents or legal representatives. This consent ensures that business activities are safeguarded within the legal framework and minors are protected from obligations. Nevertheless, there are clear ways to establish a company:
Sole proprietorship: Minors may start a sole proprietorship if the parents agree in writing. The young entrepreneur is personally liable for all liabilities.
Capital companies (LLC or stock corporation): Here, an adult person is required to take over the function of manager or board member. However, minors can still be founders of an LLC or stock corporation, as entry in the commercial register and the signing of the share capital can be enabled by the consent of the parents or a legal representative. This allows minors to engage in entrepreneurial activities, even if they are not allowed to take over management.
Important legal foundations can be found in Art. 19 and 304 ZGB, which regulate limited legal capacity and parental consent. These regulations ensure that minors remain protected but can be entrepreneurial under certain conditions.
Guidelines for starting a business before 18
Starting a company as a minor requires a well-thought-out and carefully planned process. Before starting a business, important legal aspects must be clarified:
Involving parents from the beginning
Check legal capacity
Clarify parental consent for business activities
Determine who will act as manager or board member in the company
Detailed discussions with the legal guardians are essential. They must not only give their consent but should also be actively involved in the planning process. Legal advice helps fulfill all necessary requirements and identify potential pitfalls early.
Health and social insurance for minors
If you're young and motivated to start your own business, you should think not only about the business idea – the topic of social insurance is also central. This applies even if you are still a minor.
Registration with the AHV compensation office
Once you earn a regular income as a self-employed person, you are obliged to register with the AHV compensation office. This registration is crucial to correctly classify you as a self-employed entrepreneur. Up to an annual income of CHF 10,100, you must pay the minimum contribution. For self-employed persons in secondary employment, the payment of contributions is initially voluntary, depending on your income level - from a monthly income of CHF 2,500, there is an obligation.
These insurances directly affect you:
AHV (Alters- und Hinterlassenenversicherung)
IV (Invalidenversicherung)
EO (Erwerbsersatzordnung)
The obligation to contribute begins on 1 January after your 17th birthday. The amount of your contributions depends on the annual income from your entrepreneurial activity.
Health Insurance – Individual Instead of “Family Insurance”
In Switzerland, every person must have their own health insurance, including children and adolescents. There is no family insurance in the legal sense as in other countries. Although the insurance is often taken out by the parents, each child is legally insured independently. Many health insurance companies offer reduced premiums for children and young adults up to the age of 25.
Accident Insurance
If you are self-employed, you are not insured through an employer. Therefore, it makes sense to take out accident insurance yourself – ideally with coverage for occupational and non-occupational accidents. This is especially important in craft or physically active industries.
Conclusion: Opportunities and Challenges as a Young Entrepreneur Under 18
Starting a business under 18 offers unique opportunities for personal and professional development:
Opportunities:
Early business start-up promotes practical experience and entrepreneurial skills. Young people develop skills in project management, customer service, and financial planning. An early professional network and the unbiased perspective of young entrepreneurs enable innovative solutions for existing business models.
Challenges to Consider:
The legal complexity of being a minor requires careful consideration and support from legal guardians. Young entrepreneurs must balance schoolwork and business tasks. Limited financial resources require thoughtful planning. Support from parents is crucial legally and practically for success.
The path to becoming a young entrepreneur requires careful planning and realistic assessment of one's capabilities. With the right preparation and professional support, this step can lay the foundation for a successful entrepreneurial future.
