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 Appenzello Interno: a practical guide (cross-border 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:

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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.

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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.