Open business Thurgau: trade register and costs (cross-border guide)

Context

In a nutshell

• In Switzerland, business owners must register with the cantonal trade register within 30 days.
• Taxation on 3 levels: federal (IFD), cantonal and municipal.
• SUVA and LAMal mandatory for employees; AVS/LPP for pensions.

Key facts

• What: Registration in the trade register for new business
• Where: Canton Thurgau (cantonal administration)
• Who: Natural and legal persons (different legal forms available)
• When: Within 30 days from the start of the activity
• Taxes: 3 contemporary levels (federal, cantonal, municipal)

Anyone wishing to open a business in the canton of Thurgau must register with the commercial register as in every Swiss canton. The procedure is governed by federal and cantonal rules governing legal forms, taxation and insurance obligations. Taxation follows a system divided into three levels: direct federal tax (DFI), cantonal and municipal tax, each with its own rates.

The canton of Thurgau sets its own rates independently of other cantons; the municipalities, in turn, apply multipliers on the cantonal tax, varying the final tax burden. Those who are about to start a company must consider not only the registration costs (variable by canton), but also the tax structure that will affect them in the years to come, social security contributions, and mandatory insurance for employees.

Registration in the commercial register

In Switzerland, the register of

Operational details

Taxation at three levels: federal, cantonal, and municipal

The fiscal aspect is central to every entrepreneurial decision. In Switzerland, taxation operates simultaneously at three levels: federal, cantonal, and municipal. Each level has its own competencies and rates, creating a complex but transparent structure.

At the federal level, the Federal Tax Administration (FTA/ESTV) manages the federal direct tax (FDT) and the value-added tax (VAT). These taxes are uniform throughout Switzerland according to federal laws; no canton can modify them. VAT is particularly relevant for those with annual turnover above a federal threshold: registration with the VAT register becomes mandatory and requires invoicing services with VAT applied.

At the cantonal level, the Canton of Thurgau sets its own rates for corporate income tax, independently of Zurich, Bern, or Geneva. Each cantonal administration has its own tax laws and multipliers that vary significantly. Municipalities, in turn, apply a multiplier to the cantonal tax, effectively increasing the total burden. Two identical businesses, one in Frauenfeld and the other in a neighboring municipality of the Canton of Thurgau, may pay very different amounts in taxes.

Federal and Cantonal Competencies

The FTA/ESTV manages the FDT and VAT at the national level; cantonal administrations manage cantonal and municipal taxation and local tax incentives. Those opening a business in the Canton of Thurgau must register with the Thurgau cantonal administration for corporate income tax and with the municipal tax office of the municipality where the business is located. The Thurgau cantonal administration provides information on the current rates; it is advisable to consult them to understand the exact tax structure of your situation.

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Key points

Insurance and Pension Obligations

Whoever opens a business with employees must comply with strictly defined insurance and pension obligations in Switzerland. These obligations ensure the protection of workers and the stability of the national pension system.

Accident Insurance (SUVA) If the company employs at least one person, registration with SUVA (Swiss National Accident Insurance) is mandatory. SUVA covers professional risks — workplace accidents and occupational diseases — of employees. Premiums are calculated based on the economic sector and the number of employees; they vary significantly between a manufacturing industry and a professional office.

Health Insurance (LAMal) It is not a direct company obligation, but every resident in Switzerland, including employees, must subscribe to their own health insurance (LAMal/KVG) within 3 months of arrival in the canton or the start of employment. It is a private coverage with premiums varying by canton, age bracket, and chosen deductible. The Canton of Thurgau, like all cantons, offers subsidies (premium reductions) for insured persons with low income.

Pension: AVS/AI and LPP On every salary paid to an employee, the company pays contributions to the Old-Age and Survivors' Insurance (AVS/AI) and, if the employee has a coordinated salary above a certain threshold, to the Occupational Pension Scheme (LPP/BVG). The AVS/AI contributions are 5.3% of the gross salary for the employee; the employer pays the equivalent (for a total of 10.6%). The disability insurance (AI) and loss of earnings allowance (IPG) are part of the same AVS/AI contribution. The LPP covers the complementary occupational pension and the contributions vary based on the employee's age and coordinated salary.

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