Opening a business in Glarus: trade register and costs (cross-border guide)

Context

In a nutshell

• Glarus: legal form, minimum capital and registration in the commercial register
• Registration fees and notary fees variable at cantonal level
• Insurance obligations: AVS, LPP and LAMal also for employers
• Swiss tax system at 3 levels: federal, cantonal and municipal

Key facts

• What: Opening a business in the Canton of Glarus requires the choice of a legal form, registration in the trade register and compliance with federal and cantonal insurance and tax obligations.
• When: Registration must be made before the start of the activity; individual companies without an obligation to register must be registered for VAT purposes if they exceed the established thresholds.
• Where: Canton of Glarus; cantonal office of the trade register and competent tax authorities.
• Who: Future entrepreneur or founder; cantonal trade register office; AFC/ESTV for IFD and VAT; UFAS/BSV for AVS and LPP.
• Amount: Minimum capital for Sagl/GmbH established by federal law; registration fees and notary fees defined at cantonal level.

Starting a business in Switzerland is a choice that always goes through the commercial register: every company based in Swiss territory must in fact be registered with the competent cantonal office, and in some cases also with a central federal register. In the Canton of Glarus, the procedure follows the federal rules of the Code of Bonds, but the rates, forms and aspects

Operational details

Practical analysis: costs and operational choices

Minimum capital and incorporation costs

The minimum capital for joint-stock companies is set by federal law (Code of Bonds) and does not vary from canton to canton: what changes, from Glarus to Zurich, are notary fees and registration fees in the cantonal register. The latter are determined by the commercial register office of the Canton of Glarus and depend on the legal form and complexity of the deed of incorporation.

For a sole proprietorship, the upfront costs are generally lower: no minimum capital or public deed is required. For a SAGL or an SA, in addition to the federal minimum capital, notary fees, cantonal registration fees and the possible establishment of a occupational pension fund for employees must be provided for.

Tax obligations: three levels

The Swiss tax system is divided into three levels: direct federal tax (DFI), cantonal tax and municipal tax. The IFD is a progressive federal tax, administered under the rules of the AFC and collected by the cantons under federal supervision. The cantonal tax is governed by the tax law of the Canton of Glarus, with a municipal multiplier that varies from municipality to municipality. This means that two companies with the same turnover may have a different tax burden depending on their location.

On the VAT side, registration is mandatory when exceeding the thresholds provided for by

Useful planning tools

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

Key points

Step-by-step procedure to open a business in Glarus

Before registration

1. Choose the right legal form: sole proprietorship, Sagl (GmbH), AG (SA) or another form provided by the Code of Obligations. The choice affects minimum capital, liability and accounting obligations. 2. Check the cantonal requirements: each canton may require specific authorizations for certain activities (professional regulations, licences, permits). 3. Define the registered office: the address must be in Glarus in order to be registered in the cantonal register.

Registration in the Commercial Register

4. Prepare the founding deed: for capital companies a public deed drawn up by a notary is required. For a sole proprietorship, a registration declaration with the required data. 5. Deposit the minimum capital: with a Swiss bank, with issuance of the payment confirmation required for registration. 6. Submit the application to the Commercial Register Office of the Canton of Glarus: with articles of association, founding deed, bank confirmation and identity documents of the founders. 7. Receive the UID number: necessary to operate with federal authorities and for subsequent registrations (VAT, compensation funds, etc.).

Subsequent obligations

8. Registration for VAT purposes (if mandatory or optional) through the competent federal portal. 9. Registration as an employer with the AVS compensation fund, unemployment insurance and SUVA or other LAINF insurer. 10. Registration with the occupational pension scheme if you hire personnel subject to the BVG/LPP. 11. Registration with the cantonal tax office for cantonal and municipal tax, and filing of the DFI/IFD according to federal deadlines.

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