What is the minimum capital for an SA?

A public limited company (SA) requires a minimum paid-in capital of CHF 100,000 at the time of foundation, according to the Code of Obligations (CO). This capital must be deposited with a Swiss bank or a notary before registration in the commercial register. You are not allowed to start an SA without having that amount.

Do I need to register for VAT now?

VAT registration is mandatory only when the annual turnover reaches CHF 100,000. Up to this threshold, enrollment is optional. If your turnover is lower, you can still opt for voluntary enrollment to recover VAT on purchases and handling costs. Contact the AFC/ESTV to evaluate the convenience in your specific case.

What insurances are mandatory for employees?

The following are mandatory: AVS/AI (5.3% employer + 5.3% employee), AD/AC (1.1% up to the annual ceiling), LAINF/LAA (0.7–1.5% depending on the sector), LAMal (health insurance, per capita, paid by each resident). Registration with the competent bodies must take place within the established deadlines, under penalty of penalties.

How to register with the commercial register for the Inner Appenzell Canton?

Please contact the commercial register office of the cantonal jurisdiction. You will need to submit the registration form, bylaws (for SA/Sarl), copy of identity, financial documentation (for SA/Sarl attesting to the payment of the minimum capital) and, if applicable, business authorisations for regulated sectors. Deadlines and addresses are available on the canton's official website.

What terms do I have to abide by for employee cancellations?

There is no federal minimum wage in Switzerland, but labour law provides for cancellation periods: 1 month during the first year of employment, 2 months from the second to the ninth year, 3 months from the tenth year onwards (for both parties). The minimum holiday is 4 weeks per year (5 for employees under 20). Maternity covers 14 weeks at 80%; paternity 2 weeks.

Opening a business in Appenzell Innerrhoden: a practical guide

Di Redazione Frontaliere Ticino · Published on 26 August 2026

Modern startup office desk with Swiss minimalist design, business documents and laptop, welcome nameplate, natural daylight, sharp focus

Legal forms, minimum capital, trade register registration and tax, contribution and insurance obligations to start a business in Switzerland.

Context

In a nutshell

Switzerland requires precise legal forms: SA (CHF 100,000 capital), Sarl (CHF20,000), sole proprietorship without minimum
Each canton manages the trade register; tax competences divided between AFC/ESTV (federal/VAT) and cantonal administrations
Employees mean obligations: AVS/AI (5.3% employer + 5.3% employee), AD/AC (1.1%), SUVA work accidents, LAMal

Key facts

What: Start a business in Switzerland with a choice of legal form and official registration with the cantonal administration
Legal forms: Company (no minimum capital), SA (CHF 100,000), Sarl (CHF20,000), Cooperative (variable)
Competences: AFC/ESTV for IFD and VAT; cantonal administrations for trade register and local taxes
Compulsory insurance: SUVA for accidents at work (employees), LAMal for health (per capita)
Social contributions: AVS/AI 5.3% + 5.3% employer, AD/AC 1.1% up to annual ceiling, LAINF/LAA 0.7–1.5% by sector, LPP 7–18% by age group

In Switzerland, starting a business is governed by coexisting federal and cantonal procedures. The Inner Appenzell Canton, like all other cantons, entrusts the local trade register with the task of formally registering the new company and coordinating tax obligations with the Federal Administration of Customs (AFC) and the Federal VAT Office (ESTV). The choice of legal form — sole proprietorship, public limited company (SA), company to

Operational details

The Swiss tax system operates on three overlapping levels: federal (FTA — Federal Direct Tax), cantonal, and municipal. It is not simple decentralization, but rather parallel and coordinated jurisdiction. The FTA/ESTV manages exclusively VAT and federal direct taxes; cantonal administrations manage cantonal and municipal taxes. The municipal multiplier varies from municipality to municipality: there is no single value for the entire Appenzell Innerrhoden, but each municipality sets it in accordance with cantonal law.

Federal and Cantonal Tax Obligations

VAT registration becomes mandatory when annual turnover exceeds CHF 100,000. The FTA/ESTV requires online registration on the official federal administration portal. If turnover remains below this threshold, registration remains optional, but allows you to recover VAT on purchases; it is advisable to evaluate case by case.

The Federal Direct Tax (FDT) applies to the net income of the individual enterprise or corporation. For sole proprietorships and partnerships, profit is taxed to the owner at the federal, cantonal, and municipal level. For corporations (AG, GmbH), business profit is taxed to the company; any dividend to shareholders is subject to additional taxation (Swiss classical system, with exceptions for qualified shareholdings).

The Appenzell Innerrhoden cantonal administration sets its own cantonal and municipal tax rates. Since these values vary and are updated annually, it is essential to contact the cantonal tax office or the specific municipality to find out the current multipliers.

Mandatory Insurance and Social Contributions

When you hire your first employee, mandatory contribution obligations are automatically triggered:

AHV/AI (Old-age, survivors' and disability insurance): the employer pays 5.3% on the employee's salary; the employee contributes a further 5.3%. This is a joint payment to the cantonal contribution office. It is mandatory for every employee, regardless of sector.

UI (Unemployment insurance): 1.1% of gross salary up to an established annual ceiling. Employer and employee contribute in equal measure.

WICA (Workplace accident insurance): mandatory for employees. The premium ranges from 0.7% to 1.5% depending on the sector of activity. Higher-risk sectors (construction, mining, work at height) have higher rates. It is the employer's responsibility to register workers with a SUVA-approved insurer within the established deadlines.

LAMal/KVG (Mandatory health insurance): every resident in Switzerland must take out health insurance within 3 months of arrival. Premiums are per capita — they vary by canton and region — and are not deducted from the payslip but paid by the employee directly to the insurer. Deductibles for adults range from CHF 300 to CHF 2,500 annually. Many cantons provide premium subsidies for incomes below a certain threshold.

LPP/BVG (Occupational pension fund): if the company employs employees with coordinated salary above a minimum threshold, registration with a pension fund is mandatory. Contributions vary by age group: 7% (25–34 years), 10% (35–44), 15% (45–54), 18% (55+ until retirement age).

Useful planning tools

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

Key points

Opening a business in Switzerland follows a precise sequence. Here are the main steps to complete before operationally launching your company.

Step 1: Choose legal form and verify name availability

Decide between sole proprietorship, SA, Sarl or cooperative based on size, desired liability and available capital. If you choose a business name, verify its availability at the cantonal commercial register: many cantons offer free online search. Make sure the name is not already registered and that it complies with any cantonal regulations on business names.

Step 2: Prepare constitutional documentation

For SA and Sarl, draw up the bylaws (or articles of association) according to cantonal models or with the help of a notary. For sole proprietorship, the registration form is sufficient. If the business has multiple partners, it is advisable to draw up a partnership agreement that regulates rights, duties, exit criteria, and profit distribution.

Step 3: Registration at the cantonal commercial register

Contact the commercial register office of your cantonal jurisdiction. Present:

Registration form (available at the office or online on the canton's website)
Bylaws or articles of association (for SA/Sarl)
Authenticated copy of the owner/partners' identity card
Financial documentation: bank statement or bank letter certifying the payment of minimum capital (for SA/Sarl)
Any commercial authorization if required by the sector (catering, pharmacy, hairdresser, etc.)

Registration generates a CHE number (company identification number). The commercial register automatically notifies the FTA/ESTV.

Step 4: VAT registration (if applicable)

If your expected or actual turnover exceeds CHF 100,000 annually, register for VAT with the FTA/ESTV within 30 days of reaching the threshold. Registration is mandatory; delays result in penalties. Use the tax calculator to estimate your federal tax burden and assess whether voluntary registration is worthwhile.

Step 5: Declaration of activity with the tax authority

Contact the cantonal tax office to report the start of your business. You will receive guidance on declaration deadlines (usually annual) and payment methods. You will need an account number for periodic payments.

Step 6: Registration for social insurance and contributions

Register with the cantonal contribution office (AVS/AI/AD/AC) and with a SUVA insurer for LAINF. Provide CHE number, list of employees with personal data and salaries, and business sector.

Step 7: Conclusion of mandatory insurance

Ensure that each employee has LAMal (health insurance). If not yet taken out, the employee must do so within 3 months of their first day of work. Also consider obtaining professional liability insurance (not mandatory in all sectors, but strongly recommended to protect the company from compensation claims).

Overall timeline

The process from documentation preparation to official registration generally takes 2–4 weeks. The registration fees for the commercial register vary from canton to canton and are not specified here; contact the cantonal administration directly for details.

Daily management and recurring deadlines

Once operational, the company will have recurring deadlines: VAT declarations (quarterly or annual), federal and cantonal tax declaration (annual), social insurance data communication (annual), and financial statements (for SA/Sarl with possible audit). You must also comply with labor regulations: maximum 45–50 hours/week depending on the sector, minimum 4 weeks annual vacation (5 for employees under 20 years old), regular social contributions, and notice periods (1, 2 or 3 months depending on years of service).

If you hire foreign employees, verify residence permits with the State Secretariat for Migration (SEM): short-term permits (L), residence (B), domicile (C) or cross-border (G) have different regimes.

Use our tax calculator to estimate the tax burden of your newly opened business. To search for and contact employees in Switzerland, consult our database of hiring companies.

Frequently Asked Questions

What is the minimum capital for an SA?: A public limited company (SA) requires a minimum paid-in capital of CHF 100,000 at the time of foundation, according to the Code of Obligations (CO). This capital must be deposited with a Swiss bank or a notary before registration in the commercial register. You are not allowed to start an SA without having that amount.
Do I need to register for VAT now?: VAT registration is mandatory only when the annual turnover reaches CHF 100,000. Up to this threshold, enrollment is optional. If your turnover is lower, you can still opt for voluntary enrollment to recover VAT on purchases and handling costs. Contact the AFC/ESTV to evaluate the convenience in your specific case.
What insurances are mandatory for employees?: The following are mandatory: AVS/AI (5.3% employer + 5.3% employee), AD/AC (1.1% up to the annual ceiling), LAINF/LAA (0.7–1.5% depending on the sector), LAMal (health insurance, per capita, paid by each resident). Registration with the competent bodies must take place within the established deadlines, under penalty of penalties.
How to register with the commercial register for the Inner Appenzell Canton?: Please contact the commercial register office of the cantonal jurisdiction. You will need to submit the registration form, bylaws (for SA/Sarl), copy of identity, financial documentation (for SA/Sarl attesting to the payment of the minimum capital) and, if applicable, business authorisations for regulated sectors. Deadlines and addresses are available on the canton's official website.
What terms do I have to abide by for employee cancellations?: There is no federal minimum wage in Switzerland, but labour law provides for cancellation periods: 1 month during the first year of employment, 2 months from the second to the ninth year, 3 months from the tenth year onwards (for both parties). The minimum holiday is 4 weeks per year (5 for employees under 20). Maternity covers 14 weeks at 80%; paternity 2 weeks.