Open activities Basel City: register and costs

Context

In a nutshell

• Opening a business requires a choice of legal form (company, SA, SAGL, simple company)
• Compulsory registration in the commercial register of the canton of Basel-City
• Social contributions (AVS/AI 10.6%, AD 1.1%, LAMal) mandatory immediately
• Federal, cantonal and municipal taxes in three levels

Key facts

• What: Registration in the trade register for new economic activities
• Where: Canton of Basel-City (cantonal administration)
• Who: Individual entrepreneurs, partners, shareholders according to legal form
• When: Before starting economic activity
• Legal forms: Sole proprietorship, simple company, SA, SAGL, cooperative
• Taxes: Three-level system — federal (IFD), cantonal, municipal
• Compulsory contributions: AVS/AI 10.6%, AD 1.1%, private LAMal, LPP if employees

Opening a business in the canton of Basel-City means facing an administrative and fiscal system structured on three levels of taxation and numerous social security obligations. The initial choice concerns the legal form: the tax regime, minimum capital requirements and insurance charges vary significantly between sole proprietorships, partnerships, public limited companies (SAs) and limited liability companies (SAGS).

The first concrete step is the registration in the commercial register of the canton of Basel-City. It is not an optional requirement: every economic activity exercised in a professional capacity must be registered before

Operational details

The Swiss tax system: three levels

Taxation in Switzerland consists of three distinct levels: direct federal tax (DFI), cantonal tax and municipal tax. Basel City, as a semi-canton, has its own cantonal multipliers and Basel municipalities apply municipal multipliers on a cantonal basis. This means that two businesses with the same turnover in different municipalities of Basel City can pay slightly different amounts of municipal tax, although the federal and cantonal basis remains identical.

A SA will pay corporate net income taxes at the three levels according to the federal progressive rates, the cantonal rate of Basel City and the specific municipal multiplier. A sole proprietorship will pay personal professional net income taxes, reducing the tax base with deductions for mandatory social contributions (AVS/AI, unemployment insurance) and documented professional expenses. A SAGL combines elements of both: the entity is taxed on income, but with greater distributional flexibility than an SA.

Social security and insurance obligations

Health insurance (LAMal) is mandatory for anyone residing in Switzerland and must be taken out within 3 months of the start of residence or the start of business for those who already reside. LAMal is not a tax or a salary contribution: it is a private insurance with per capita premiums that vary by canton and sick fund. Basel

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Step-by-Step Procedure for Registration

Phase 1: Preliminary Preparation

Before contacting the commercial register, define the legal form of your activity. If you choose a sole proprietorship, you will need a business name (denomination), the company address (Swiss address), and a brief description of the activity. If you choose a SA or SAGL, you must draw up a statute or founding deed, designate administrative bodies (board of directors, manager), and pay the minimum capital to a bank (depositary trustee). The simple partnership requires a written agreement between partners.

Phase 2: Registration with the Cantonal Office

The canton of Basel City has a central office for the commercial register where you can submit the registration application. At the national level, information on uniform procedures is coordinated between cantonal administrations, but the actual request is made to the cantonal office. Typical documents include:

• Completed registration form (available at the cantonal office)
• Bank certificate (if capital payment)
• Statute/founding deed (for SA, SAGL, simple partnership)
• Designation of administrators and legal representatives with authenticated signature
• Identity document of the applicant

Phase 3: Notification to Tax and Insurance Authorities

After registration with the commercial register, the Federal Administration of Customs and Taxes (AFC) automatically receives the data from the cantonal database. However, you must notify your cantonal residence of the tax situation (federal and cantonal declarations) and conclude health insurance within 3 months. If you have employees, you must also register the company with the competent administrative office for professional pension management (LPP) for your sector and canton.

Phase 4: Opening a Bank Account and Accounting

Open a bank account in the company's name (SA/SAGL) or in your name (sole proprietorship). If your activity has invoiced above a certain limit, you may need to request a VAT number from the AFC for invoicing and paying the value-added tax. The accounting must be regularly updated and kept for at least 7 years for potential tax audits.

Deadlines and Recurring Obligations

After registration, annual obligations include:

• Federal and cantonal tax declarations: within the terms set by the AFC and canton (typically spring/summer of the following year)
• Payment of AVS/AI, AD contributions: according to the calendar of the Commercial Register Office and cantonal administration
• Payment of LPP contributions (if employees are registered): monthly to the company's pension fund
• Balance sheet declaration (for SA, SAGL; less stringent for sole proprietorship): within 6 months of the end of the year
• LAMal renewal and annual verification of cantonal subsidies

Tools for Calculating Your Tax Burden

Use the salary calculator to simulate the impact of different levels of gross income and see how the withholding system (AVS, AD, federal and cantonal taxes) affects the net available. This simulation helps understand if the overall cost structure is sustainable.

To understand the context of living costs in the canton of Basel City and Switzerland in general, consult the guide on cost of living. Remember that each canton has margins of maneuver on cantonal tax rates, and common ones apply their own multipliers.

For details on pension and retirement, consult the guide dedicated to AVS/LPP calculations for self-employed workers. For health insurance, check the updated LAMal premiums in your canton and the conditions for subsidies.

Next step: Contact the Commercial Register Office of Basel City for the updated registration form, or consult a tax advisor familiar with local fiscal dynamics. Initial investment in a brief consultation will save you costly errors in administration and tax declarations.