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Withdrawal of pension funds

Young entrepreneurs often think of withdrawing their pension fund when starting their own business. Here is a guide for the withdrawal.

1. With which legal forms is an early withdrawal of pension funds possible?

The withdrawal of pension funds is only possible when a sole proprietorship or general partnership is founded. It is not possible to withdraw funds if you will use the money to found a GmbH or AG.

An entry in the Commercial Register is not required for sole proprietorships that have less than CHF 100,000 sales/a. However, it is highly recommended to register early on when founding the company. This helps to increase the credibility of the company. With the registration you will also receive an official document you can use in business transactions – the certificate of registration.

2. Procedure to withdraw pension funds

Ideally, you should wait to apply at the compensation office for the withdrawal until you have received the certificate of registration. Next you should create a file containing the necessary documents:

  • Commercial register extract
  • Copy of termination letter from previous employer
  • Min. 3 bids and min. 3 bills
  • Logo, stationary and business cards
  • Brief description of your activity
  • Possible rental agreement and further evidence if at hand

Together with the completed questionnaire you can send this file to your compensation fund. After 10-14 days you should receive a confirmation from the compensation fund that you have been accepted as self-employed.

This confirmation of your compensation office has then to be sent to your pension fund or your bank (if you have a vested benefits account). After that the funds of your pension should be paid out. However please do note that 5% (varies from canton to canton) of the payed out pension amount should be kept in the account so the tax bill can be paid. 

STARTUPS.CH can help you when applying for the pension fund withdrawal. Just contact us.