Knowing your trade and having your first customers is a good start. Running a building business also means pricing work, funding materials before customers pay and deciding who is responsible when something goes wrong. A sole painter, a masonry firm with employees and a general renovation contractor face different costs and obligations. Begin with the work you will carry out yourself and the work you will subcontract.
At a glance
- Trade qualifications and authorisations depend on the service. Electrical installations are a common example of regulated work.
- An LLC separates the company’s assets from the owner’s, but the business still needs suitable insurance and financial controls.
- Budget for vehicles and equipment as well as wages, materials and delays between doing the work and getting paid.
- Identify the accident insurer, collective agreement and safety requirements before starting the first job.
- Contracts should cover variations, acceptance, notice of defects and limitation periods. Revised Swiss construction defect rules took effect on 1 January 2026.
Do you need a qualification or permit to start a building business?
Check the requirements for each service
A Swiss Federal VET Diploma (CFC/EFZ) and experience help you price and carry out work competently. There is no single diploma required to set up every type of construction business. List each service you plan to sell and check its particular requirements.
For regulated electrical installations, check the authorisation required by the Federal Inspectorate for Heavy Current Installations (ESTI). Other technical work may be subject to cantonal, industry or utility requirements. Separate work you may perform from work that requires a licensed subcontractor. Joining a trade association does not itself authorise regulated work. Training apprentices also requires approval and appropriate training skills.
Workshop, sites and safety
Check permitted use of your workshop or depot, storage, waste disposal and noise requirements. On site, identify hazards, provide collective protection and protective equipment, and brief employees before work begins.
For renovations to buildings constructed before 1990, investigate possible asbestos before disturbing materials. Certain removal work must be done by recognised specialists. If workers uncover suspect material, stop the affected work and have it assessed before continuing.
Sole proprietorship or LLC for a building contractor?
A sole proprietor can start without minimum statutory capital and is personally responsible for business debts. An LLC needs at least CHF 20,000 in fully paid-up capital. A personal guarantee or a breach of a manager’s duties can still create personal exposure. Compare the two structures and agree roles, pay, decisions and exit terms if several people are investing.
Registration and social insurance
Self-employed status depends on who gives instructions, bears the commercial risk and organises the work. Sending invoices does not turn an employee into an independent contractor. Suva participates in status assessments in relevant trades. Keep contracts, equipment records and evidence of working for customers for the self-employment application.
An LLC or company limited by shares must register commercially. A commercially run sole proprietorship generally has to register once the preceding year’s turnover reaches CHF 100,000. Check VAT and social insurance separately. For companies within scope, the Swiss transparency register also applies under the rules effective from 1 October 2026.
Finance the start-up and the first jobs
Build a budget from actual quotes
Separate equipment, vehicles, premises and working capital. For each purchase, record its cost, payment date and expected use. Hiring a machine for occasional work may be economical. Leasing spreads the payments but creates a commitment through quiet months. Compare maintenance, total cost and exit terms.
Share capital is different from formation costs. Machinery may count as a contribution in kind if the rules are met, but it cannot pay wages or suppliers.
Work out the peak cash requirement
Suppose materials cost CHF 18,000 and wages and payroll costs are CHF 12,000 before the customer pays. A CHF 10,000 deposit leaves CHF 20,000 to finance. A profitable job can still create this funding gap. Agree deposits and progress payments, monitor retentions and invoice approved variations. Compare the terms of a credit facility or factoring if needed. Our Swiss business loan guide explains what a bank will ask for.
Keep a margin sheet and a cash schedule
The margin sheet compares the agreed price with materials, labour hours, subcontractors and allocated overheads. The cash schedule shows when each amount is paid or received. Issuing a CHF 15,000 progress invoice in the example above reduces the cash gap only when the payment clears. Put a retention on its likely release date before relying on it to fund your next job.
Insurance, site safety and construction defects
Compulsory insurance and collective employment agreements
Employees must have occupational accident insurance under the Accident Insurance Act. Businesses within Suva’s statutory remit must insure with Suva. Non-occupational accident cover starts at eight hours a week with the same employer. A self-employed contractor also needs to register with the competent social insurance compensation office.
Check which collective agreement covers the trade and worksite. For main construction trades, start with the Convention nationale pour le secteur principal de la construction en Suisse (CN, German abbreviation LMV). For finishing trades in French-speaking Switzerland, check the Convention collective de travail du second œuvre romand. The SECO list of agreements (French) gives the coverage, territorial scope and extensions. It may govern pay, hours, allowances, insurance, contributions and early retirement. Public bad-weather compensation has its own unemployment insurance rules. For business liability cover, ask whether the policy covers damage to customers’ property in your care, custody or control, damage after handover and claims arising from subcontractors’ work. Replacing your own defective work is often treated differently from damage to a third party.
Construction defects in contracts made from 2026
For the relevant contracts concluded from 1 January 2026, the statutory period for giving notice of a defect is 60 days. It runs from delivery for apparent defects and from discovery for hidden defects. The contract cannot shorten it. For the immovable works covered by the law, an advance clause restricting or excluding the right to free rectification is void.
The limitation period for claims over defects in immovable works is generally five years from acceptance and cannot be shortened to the customer’s detriment under the revised rules. Distinguish that period from the notice deadline. Check older contracts separately. If the parties incorporate SIA 118, the general conditions for construction work published by the Swiss Society of Engineers and Architects, specify how it applies alongside mandatory law. Switzerland has no general equivalent of France’s compulsory ten-year construction insurance. A customer can still require a bank guarantee or specific insurance.
Quotes, subcontractors and getting paid
A construction quote should identify the scope, exclusions, materials, price, VAT, deadlines and payment terms. Have variations accepted before doing the extra work. The invoice should let the customer reconcile the agreed price with approved extras. Retain correspondence, measurements and acceptance records.
Verify subcontractors’ qualifications, insurance, employment status and working conditions. In construction and finishing trades, the main contractor can, under certain conditions, be liable for subcontractors’ breaches of minimum pay and employment conditions. Public tenders on SIMAP, the Swiss public procurement platform, have their own evidence requirements. Read them before investing in a bid.
Deposits, progress payments and the builder’s lien
Agree the deposit before ordering materials. Identify the milestones, how progress is measured and who can approve extras. Keep the accepted quote, site reports and evidence of when each part of the work was completed.
Under Articles 837 and 839 of the Swiss Civil Code, eligible contractors and subcontractors may secure payment against the property through a statutory lien. Registration in the land register must take place within four months of completion of the contractor’s work. An overdue reminder or an application filed on the last day does not by itself preserve the claim. Obtain advice in time to arrange provisional registration where necessary.
Translation note. The English translation on Fedlex is not legally binding and refers to filing an application. Under the authoritative French and German texts, the lien itself must be entered, at least provisionally, within four months of completion of the work.
The owner can prevent registration by providing sufficient security for the contractor’s claim. Under Article 839(3), that security must also cover ten years of default interest. Check the amount and duration of any guarantee offered.
A variation adding CHF 2,500 of materials and ten hours
Record the extra work, price, effect on the completion date and the person authorised to approve it. Keep their acceptance with the job file before proceeding. Otherwise both the scope and the amount can be disputed when the bill arrives.
Find your first customers
Show two or three comparable jobs with the customers’ permission. State your service area and the work you do in-house. Architects, property managers, general contractors and past customers you are free to approach are natural starting points.
Prepare a subcontractor file
Provide company details, named supervisors, authorisations, insurance and evidence of compliance with employment conditions. Define interfaces with other trades and the handover documents. Check who supplies tools, directs workers and bears the risk. A business identification number and an invoice are insufficient evidence of independence. A labour supply arrangement may need a different legal assessment.
Before accepting the first contract
Check that you are authorised and insured for the actual work. Price the job, document the approval of extras and identify the largest cash shortfall. These checks give you a practical basis for deciding which jobs you can deliver and finance.
Frequently asked questions
Can I start a painting or renovation business without a Swiss trade diploma?
There is no blanket diploma requirement for all building businesses. Check each service separately. Some technical installations require qualifications or authorisation even when other services on the same job do not.
Can a cross-border commuter start a Swiss construction company?
Yes, subject to the applicable residence, work and business organisation rules. Establishing a Swiss business is different from providing temporary services from abroad or posting employees.
What VAT rate applies to renovation work?
Taxable construction and renovation work generally attracts the Swiss standard rate of 8.1%. There is no general reduced rate for residential renovation. Special real estate transactions need separate analysis.
How can a new contractor avoid cash-flow problems?
Estimate payments before accepting the job, agree deposits, invoice progress promptly and monitor when cash actually arrives. Track expected margin and available cash separately.
Can one Swiss company offer several building trades?
Yes. List each service and verify its requirements. Painting and electrical installations have different rules. Use an authorised business for regulated work if your company does not hold the necessary authorisation.
Sources and further reading
Have a question about starting your business?
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Romain Prieur is a Swiss Certified Public Accountant and the founder of Entreprendre.ch. He has more than ten years of experience in audit and business advisory in Switzerland and advises entrepreneurs on company formation, accounting and tax.
