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what exactly is a sole proprieter?

I am totally confused and hope someone here can help. I want to work in Geneva as an independent journalist and am battling with the Geneva authorities over this right now.


I have also been told that I can become a sole proprietor, but it's not clear to me if this is different than getting independent status. I only know that it is NOT the same as setting up an Sarl (which I am not considering).


Can someone please help me understand? Thank you.

The text you are quoting:

I am totally confused and hope someone here can help. I want to work in Geneva as an independent journalist and am battling with the Geneva authorities over this right now.


I have also been told that I can become a sole proprietor, but it's not clear to me if this is different than getting independent status. I only know that it is NOT the same as setting up an Sarl (which I am not considering).


Can someone please help me understand? Thank you.


eveyansasSep 30, 2013 @ 13:51
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Re: what exactly is a sole proprieter?
Post 1

Hi from a fellow journalist, though not self-employed


A sole proprietor is a entreprise individuelle in the Swiss law. It means that you are an independant worker, sole owner of your business and that in case you get in debt in your business, you can be liable on your private property. So it's the same thing as being an independant.


Here is an explanation in English: http://www.gruenden.ch/en/founding-process/preparation/legal-forms/sole-proprietorship/


For more details in French, German or Italian : http://www.kmu.admin.ch/kmu-gruenden/03153/03190/index.html?lang=fr


With which authorities are you battling with? Did you try the Promotion économique? They're supposed to be here to help you. Else, you can ask the Service de promotion of the Fédération des entreprises romandes Genève (www.fer-ge.ch), they're very helpful

The text you are quoting:

Hi from a fellow journalist, though not self-employed


A sole proprietor is a entreprise individuelle in the Swiss law. It means that you are an independant worker, sole owner of your business and that in case you get in debt in your business, you can be liable on your private property. So it's the same thing as being an independant.


Here is an explanation in English: http://www.gruenden.ch/en/founding-process/preparation/legal-forms/sole-proprietorship/


For more details in French, German or Italian : http://www.kmu.admin.ch/kmu-gruenden/03153/03190/index.html?lang=fr


With which authorities are you battling with? Did you try the Promotion économique? They're supposed to be here to help you. Else, you can ask the Service de promotion of the Fédération des entreprises romandes Genève (www.fer-ge.ch), they're very helpful


Bustan_A, Sep 30, 2013 @ 14:25
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Re: what exactly is a sole proprieter?
Post 2

Thank you! I was afraid that it meant the same thing. It is the Geneva AVS office. I haven't tried the promotion économique but will see if I can find a contact person there. I initially appllied to the FER but they actually referred me to the AVS people, saying they couldn't handle my dossier (perhaps because I'm a journalist? I don't know). But perhaps it's worth a call there anyway to see if I can reach someone who can help or provide some guidance.

The text you are quoting:

Thank you! I was afraid that it meant the same thing. It is the Geneva AVS office. I haven't tried the promotion économique but will see if I can find a contact person there. I initially appllied to the FER but they actually referred me to the AVS people, saying they couldn't handle my dossier (perhaps because I'm a journalist? I don't know). But perhaps it's worth a call there anyway to see if I can reach someone who can help or provide some guidance.


eveyansas, Sep 30, 2013 @ 14:28
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Re: what exactly is a sole proprieter?
Post 3

I've heard from other people that it can be challenging getting a work permit as an independant because their definition of what constitutes an independant worker (e.g. having at least 3 concurrent clients) is not realistic for some professions, such as IT consultants.

The text you are quoting:

I've heard from other people that it can be challenging getting a work permit as an independant because their definition of what constitutes an independant worker (e.g. having at least 3 concurrent clients) is not realistic for some professions, such as IT consultants.


Andy C, Sep 30, 2013 @ 14:53
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Re: what exactly is a sole proprieter?
Post 4

You must be approved by the AVS to work as an independent. There is specific critieria that they are looking for. Basically, if you are working as a de facto employee they won't approve your status. 


They have the criteria listed on thier website somewhere. I just can't find it now. I'll try to have another look later. 


 

The text you are quoting:

You must be approved by the AVS to work as an independent. There is specific critieria that they are looking for. Basically, if you are working as a de facto employee they won't approve your status. 


They have the criteria listed on thier website somewhere. I just can't find it now. I'll try to have another look later. 


 


Lucy L, Sep 30, 2013 @ 14:53
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Re: what exactly is a sole proprieter?
Post 5

I've heard from other people that it can be challenging getting a work permit as an independant because their definition of what constitutes an independant worker (e.g. having at least 3 concurrent clients) is not realistic for some professions, such as IT consultants.


Sep 30, 13 14:53

It's not really the number of clients but whether or not you are just a de facto employee. The more clients you work for at the same time, the less likely you are a de facto employee for one company. 


IT "contractors" are basically just temporary employees. People who are really "consultants" don't spend 8 hrs a day 5 days a week chained to a computer at the employers office. ;) 

The text you are quoting:

It's not really the number of clients but whether or not you are just a de facto employee. The more clients you work for at the same time, the less likely you are a de facto employee for one company. 


IT "contractors" are basically just temporary employees. People who are really "consultants" don't spend 8 hrs a day 5 days a week chained to a computer at the employers office. ;) 


Lucy L, Sep 30, 2013 @ 14:59
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Re: what exactly is a sole proprieter?
Post 6

They told me I should have five contracts, which is really a lot. I have four, but they discarded two out of hand - one because it's with the UN and they said that doesn't count because the UN doesn't pay social security and the other because the employer (an author) isn't registered an employer. So it seems they go out of their way NOT to allow people as independents, even though I know lots of people in my profession in Geneva who are independents (and they only have one contract!). I am thinking maybe I should consult a lawyer (I've spoken with a couple of accountants but they don't really know what to do in my case).

The text you are quoting:

They told me I should have five contracts, which is really a lot. I have four, but they discarded two out of hand - one because it's with the UN and they said that doesn't count because the UN doesn't pay social security and the other because the employer (an author) isn't registered an employer. So it seems they go out of their way NOT to allow people as independents, even though I know lots of people in my profession in Geneva who are independents (and they only have one contract!). I am thinking maybe I should consult a lawyer (I've spoken with a couple of accountants but they don't really know what to do in my case).


eveyansas, Sep 30, 2013 @ 15:03
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Re: what exactly is a sole proprieter?
Post 7

Five seems quite a lot. You can always say that you are working on getting more. 


But the other things doesn't make sense because you as the sole proprietor would be paying the "employers" part of the contributions anyway. So whether or not the UN pays seems irrelevant. 


Don't know how your French is. Could it be a misunderstanding? 

The text you are quoting:

Five seems quite a lot. You can always say that you are working on getting more. 


But the other things doesn't make sense because you as the sole proprietor would be paying the "employers" part of the contributions anyway. So whether or not the UN pays seems irrelevant. 


Don't know how your French is. Could it be a misunderstanding? 


Lucy L, Sep 30, 2013 @ 15:07
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Re: what exactly is a sole proprieter?
Post 8

We spoke in English. It seemed like his main goal was to ensure that I would not be declared independent. One of the accountants said five is what I should have but that they may accept three. The man at AVS said they won't give a permit as independent based on future contracts.

The text you are quoting:

We spoke in English. It seemed like his main goal was to ensure that I would not be declared independent. One of the accountants said five is what I should have but that they may accept three. The man at AVS said they won't give a permit as independent based on future contracts.


eveyansas, Sep 30, 2013 @ 15:13
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Re: what exactly is a sole proprieter?
Post 9

It's not really the number of clients but whether or not you are just a de facto employee. The more clients you work for at the same time, the less likely you are a de facto employee for one company. 

IT "contractors" are basically just temporary employees. People who are really "consultants" don't spend 8 hrs a day 5 days a week chained to a computer at the employers office. ;) 


Sep 30, 13 14:59

Actually, a very high percentage of genuine consultants work full-time for a single client for a period of time, because large projects demand it.  The fact that the work is project based and, therefore limited in time and in the level of assimilation of the consultant into the employed work-force, qualifies this work as independant in most countries.  (At least, in most countries where independant consultants are allowed to work at all.)


Most of the large, well known consultancies place large numbers of their people on client sites full-time, and there is no question that these people are consultants.

The text you are quoting:

Actually, a very high percentage of genuine consultants work full-time for a single client for a period of time, because large projects demand it.  The fact that the work is project based and, therefore limited in time and in the level of assimilation of the consultant into the employed work-force, qualifies this work as independant in most countries.  (At least, in most countries where independant consultants are allowed to work at all.)


Most of the large, well known consultancies place large numbers of their people on client sites full-time, and there is no question that these people are consultants.


Andy C, Sep 30, 2013 @ 15:07
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Re: what exactly is a sole proprieter?
Post 10

Ah.... you dont' have a permit yet. Well... that could be different. I don't know.


But anyway, here is the PDF to tell you what is considered an independent. 


It will pop up the PDF directly when you click, at least hopefullly. ;)


 2.02 - Cotisations des indépendants à l'AVS, à l'AI et aux APG 


 

The text you are quoting:

Ah.... you dont' have a permit yet. Well... that could be different. I don't know.


But anyway, here is the PDF to tell you what is considered an independent. 


It will pop up the PDF directly when you click, at least hopefullly. ;)


 2.02 - Cotisations des indépendants à l'AVS, à l'AI et aux APG 


 


Lucy L, Sep 30, 2013 @ 15:15
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Re: what exactly is a sole proprieter?
Post 11

Actually, a very high percentage of genuine consultants work full-time for a single client for a period of time, because large projects demand it.  The fact that the work is project based and, therefore limited in time and in the level of assimilation of the consultant into the employed work-force, qualifies this work as independant in most countries.  (At least, in most countries where independant consultants are allowed to work at all.)

Most of the large, well known consultancies place large numbers of their people on client sites full-time, and there is no question that these people are consultants.


Sep 30, 13 15:07

I'm just teasing. Note the ";)".


But anyway, the Swiss don't seem to like that kind of system. Shrug. 

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I'm just teasing. Note the ";)".


But anyway, the Swiss don't seem to like that kind of system. Shrug. 


Lucy L, Sep 30, 2013 @ 15:17
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Re: what exactly is a sole proprieter?
Post 12

I'm just teasing. Note the ";)".

But anyway, the Swiss don't seem to like that kind of system. Shrug. 


Sep 30, 13 15:17

Sorry - didn't mean to be snappy.  Anyway, what matters is, as you say, how the Swiss authorities view it.

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Sorry - didn't mean to be snappy.  Anyway, what matters is, as you say, how the Swiss authorities view it.


Andy C, Sep 30, 2013 @ 15:19
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Re: what exactly is a sole proprieter?
Post 13

I only with the Swiss did have this kind of system! The thing it, I easily got my G work permit (I'm a frontalier) but it's the AVS problem that has got me stumped.


 

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I only with the Swiss did have this kind of system! The thing it, I easily got my G work permit (I'm a frontalier) but it's the AVS problem that has got me stumped.


 


eveyansas, Sep 30, 2013 @ 15:21
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Re: what exactly is a sole proprieter?
Post 14

Sorry - didn't mean to be snappy.  Anyway, what matters is, as you say, how the Swiss authorities view it.


Sep 30, 13 15:19

don't worry. i rarely get offended. :D


 


"I only with the Swiss did have this kind of system! The thing it, I easily got my G work permit (I'm a frontalier) but it's the AVS problem that has got me stumped."


Sorry. You have your permit? If it's just getting the approval from AVS then read through the PDF I linked to and point out to them all the ways you meet the critieria. And maybe find someone else who will say they are your client. They don't have to actually go through with it after. 


Personally, I'd go keep going back and talk to someone else until I got the answer I wanted. But go back asking them for their advice on what you need to do next. They like to be asked for their expertise. ;) Flattery will get you everywhere. ;)



The text you are quoting:

don't worry. i rarely get offended. :D


 


"I only with the Swiss did have this kind of system! The thing it, I easily got my G work permit (I'm a frontalier) but it's the AVS problem that has got me stumped."


Sorry. You have your permit? If it's just getting the approval from AVS then read through the PDF I linked to and point out to them all the ways you meet the critieria. And maybe find someone else who will say they are your client. They don't have to actually go through with it after. 


Personally, I'd go keep going back and talk to someone else until I got the answer I wanted. But go back asking them for their advice on what you need to do next. They like to be asked for their expertise. ;) Flattery will get you everywhere. ;)




Lucy L, Sep 30, 2013 @ 15:30
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Re: what exactly is a sole proprieter?
Post 15

Yes, it's just the AVS people who are giving me the problem. But you're probably right - maybe I can find someone else to speak with who would be more open to my situation. They are really pushing for me to register as an employee. :(

The text you are quoting:

Yes, it's just the AVS people who are giving me the problem. But you're probably right - maybe I can find someone else to speak with who would be more open to my situation. They are really pushing for me to register as an employee. :(


eveyansas, Sep 30, 2013 @ 15:37
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Re: what exactly is a sole proprieter?
Post 16

Definately go back and ask them "what do I need to do?" and don't go to the same person. I'd go with you, but you're a bit far. :) 


Good luck!

The text you are quoting:

Definately go back and ask them "what do I need to do?" and don't go to the same person. I'd go with you, but you're a bit far. :) 


Good luck!


Lucy L, Sep 30, 2013 @ 19:44
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