What is the first step to open a business in the Canton of Glarus?

The first step is to choose the legal form (sole proprietorship, Sàrl, SA), as this decision determines tax and social security obligations. Once chosen, it is mandatory to register the activity in the cantonal trade register, which assigns the company identification number (UID) necessary to operate legally and to interact with tax and social authorities.

What are the costs of registering with the trade register in Glarus?

The fees for registration in the trade register vary slightly depending on the specific municipality and the legal form chosen. It is advisable to contact directly the office of the Commercial Registry of the Canton of Glarus to obtain an accurate quotation of the administrative expenses and any municipal taxes applied.

Am I required to pay AVS and LPP if I open a business and have no employees?

Yes, as a self-employed person you are obliged to pay AVS/AI contributions even without employees. The AVS clearinghouse will generate an annual invoice based on your estimated net income. LPP (occupational pension) is mandatory only if you hire employees; as a self-employed person without employees, you can subscribe to the third pillar 3a as an additional form of social security savings and tax deduction.

How long do I have to take out LAMal health insurance?

Health insurance (LAMal) must be taken out within 3 months of arrival in the Canton of Glarus or from the date of commencement of activity if you are already a resident. Insurance is private with variable premiums per canton and region. Standard adult deductibles range from CHF 300 to CHF 2500. The Canton of Glarus offers cantonal subsidies to reduce premiums based on income.

What labor law obligations must a company that hires employees comply with?

An employer in Switzerland must respect the maximum hours of 45 hours per week (industry, offices, sales) or 50 hours in other sectors, guarantee a minimum of 4 weeks of annual leave (5 if the employee is under 20), pay AVS/AI contributions (5.3%), unemployment benefits (AD, approximately 1.1%) and accident insurance (LAINF/LAA, 0.7-1.5% per sector), enroll the employee in an LPP fund with contributions variable by age (7–18%).

Open Glarus business: costs and obligations (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 30 August 2026

Entrepreneur reviewing business registration documents at a modern office in Switzerland

Complete practical guide on legal form, three-level taxation, AVS/LPP contributions and LAMal for those starting a business in the Canton of Glarus.

Context

In a nutshell

Taxation at three levels: federal, cantonal and municipal
Compulsory registration in the cantonal trade register
AVS/LPP contributions mandatory for employees and the self-employed
Mandatory LAMal within 3 months for all residents

Key facts

What: Start an economic activity in the Canton of Glarus
Where: Canton of Glarus, eastern Switzerland
Who: Entrepreneurs, freelancers, companies
Taxation: Three levels (federal, cantonal, municipal)
Pension: AVS/AI 5.3% employee; LPP 7–18% for coordination
Insurance: LAMal mandatory with deductibles CHF 300–2500

The first step: choosing the legal form

Starting a business in the Canton of Glarus requires first of all the choice of legal form. An entrepreneur can operate as a sole proprietorship, if the activity is simple and manageable by a single person, or set up a limited company (joint-stock company or limited liability company) for more complex structures. The decision affects not only administrative management, but also tax and social security obligations.

Once the legal form has been defined, registration in the commercial register of the Canton of Glarus is mandatory for all merchants in the commercial, industrial or craft professions. This fulfillment is the prerequisite to operate legally and allows the company to have a company identification number (UID) necessary for all relations with the

Operational details

Legal form and minimum capital

The legal form chosen directly influences the administrative complexity and upfront costs. A sole proprietorship does not require minimum capital and represents the least onerous solution for small businesses, but exposes the entrepreneur to unlimited liability on his personal assets. A limited liability company (Sàrl/SARL) provides minimal capital and offers protection of personal assets, while a public limited company (SA) is suitable for larger structures and attracts external investors.

In the Canton of Glarus, municipalities can apply for registration in the trade register with documents that vary slightly depending on the form chosen. No matter which form you choose: registration is mandatory and must take place at the cantonal trade register office, which issues the company identification number (UID) necessary for tax and social security purposes.

Cost Deduction and Tax Planning

Once operational, the business generates operating costs (rent, utilities, salaries, supplies) that are deductible from the tax base for the calculation of direct federal tax (DFI). This feature reduces the tax burden, but requires accurate documentation and the submission of a detailed annual tax return.

The Swiss tax system at three levels (federal, cantonal, municipal) creates very different scenarios depending on the municipality chosen, given

Useful planning tools

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

Key points

Practical checklist: the steps to start a business

Phase 1: Legal and administrative foundations

The first step is to decide between a sole proprietorship, an Sàrl (GmbH), or an SA (AG). This decision determines tax and social security obligations throughout the company's entire life. Consulting an accountant or a cantonal business advisory office to assess the implications is strongly recommended, as mistakes in the early stages are costly to correct.

Immediately afterwards, contact the Commercial Register office of the Canton of Glarus with the required documents (articles of incorporation for companies, copy of identity document, certificate of good conduct). After approval, you will receive the business identification number (UID/IDI), which is essential to operate legally and to interact with tax and social authorities.

Opening a business bank account is the next step. Go to a local bank with the UID number and corporate documents. A dedicated account allows you to operate officially and to separate personal financial flows from business ones — an informal requirement but strongly recommended by tax authorities to avoid disputes.

Phase 2: Social security and health insurance

Contact the cantonal AVS compensation office (usually managed by a common or regional body in Glarus) to register as an employer or self-employed person. Obtain the affiliation number required for periodic contributions.

If you will be hiring employees, register the company with a professional pension fund (LPP/BVG) appropriate to the economic sector of the activity. Contributions start from the employment start date and vary according to the employee's age.

…

Frequently Asked Questions

What is the first step to open a business in the Canton of Glarus?: The first step is to choose the legal form (sole proprietorship, Sàrl, SA), as this decision determines tax and social security obligations. Once chosen, it is mandatory to register the activity in the cantonal trade register, which assigns the company identification number (UID) necessary to operate legally and to interact with tax and social authorities.
What are the costs of registering with the trade register in Glarus?: The fees for registration in the trade register vary slightly depending on the specific municipality and the legal form chosen. It is advisable to contact directly the office of the Commercial Registry of the Canton of Glarus to obtain an accurate quotation of the administrative expenses and any municipal taxes applied.
Am I required to pay AVS and LPP if I open a business and have no employees?: Yes, as a self-employed person you are obliged to pay AVS/AI contributions even without employees. The AVS clearinghouse will generate an annual invoice based on your estimated net income. LPP (occupational pension) is mandatory only if you hire employees; as a self-employed person without employees, you can subscribe to the third pillar 3a as an additional form of social security savings and tax deduction.
How long do I have to take out LAMal health insurance?: Health insurance (LAMal) must be taken out within 3 months of arrival in the Canton of Glarus or from the date of commencement of activity if you are already a resident. Insurance is private with variable premiums per canton and region. Standard adult deductibles range from CHF 300 to CHF 2500. The Canton of Glarus offers cantonal subsidies to reduce premiums based on income.
What labor law obligations must a company that hires employees comply with?: An employer in Switzerland must respect the maximum hours of 45 hours per week (industry, offices, sales) or 50 hours in other sectors, guarantee a minimum of 4 weeks of annual leave (5 if the employee is under 20), pay AVS/AI contributions (5.3%), unemployment benefits (AD, approximately 1.1%) and accident insurance (LAINF/LAA, 0.7-1.5% per sector), enroll the employee in an LPP fund with contributions variable by age (7–18%).