What is the minimum capital to open a Sagl or SA in Switzerland?

For a Sagl the minimum share capital is CHF 20,000, of which at least CHF 10,000 paid up. For an SA the minimum capital is CHF 100,000, of which at least CHF 50,000 paid up. Sole proprietorships and partnerships do not require minimum statutory capital, but the entrepreneur responds with personal assets.

When is registration in the VAT register mandatory?

Registration in the VAT register is mandatory if the annual turnover exceeds CHF 2,500 of taxable services. VAT registration is always mandatory for all legal entities (SAGL and SA), regardless of turnover.

What wage contributions must an employer make in Switzerland?

The main contributions are: AVS/AI/IPG at 5.3% at the expense of the employee and 5.3% at the expense of the employer (total 10.6%); AD at 1.1% for both parties up to the annual ceiling; LAINF/LAA from 0.7% to 1.5% at the expense of the employer alone, depending on the sector. For the LPP, the minimum contributions range from 7% (25-34 years) to 18% (from 55 years to the reference age).

Within how many months of the start of activity should LAMal be stipulated?

Compulsory health insurance (LAMal) must be taken out within three months of arrival or commencement of activity. Premiums are per capita and vary by Canton and region; the Canton of Schwyz provides for premium reductions for modest incomes.

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

The first formal step is the registration at the cantonal office of the commercial register (Handelsregisteramt) of the Canton of Schwyz. After registration, the new entrepreneur receives an IDI number and is registered ex officio in the VAT and AVS registers.

Starting a business in the Canton of Schwyz: a practical guide

Di Redazione Frontaliere Ticino · Published on 30 August 2026

Storefront in a Canton Schwyz town with the Alps in the background

Complete procedure in the Canton of Schwyz: trade register, minimum capital for Sagl and SA, AVS, AD, LPP and LAMal obligations.

Context

In a nutshell

Opening a business in Switzerland requires registration in the cantonal trade register
The choice of legal form determines minimum capital and liability
Canton of Svitto: own tax laws and municipal multipliers
Insurance obligations (AVS, AD, LAINF, LPP) start from the first employee

Key facts

What: procedure to start a business in the Canton of Schwyz
When: Fulfilments to be completed before the start of activities
Where: Canton of Schwyz, German-speaking Switzerland
Who: future entrepreneur, cantonal trade register, tax offices
Amount: minimum variable capital according to the legal form
Taxes: registration fees in the commercial register
Insurance: LAMal within 3 months, AVS/AI/IPG 5.3% employee, AD 1.1%
Pension: coordinated PPI for age groups 25-34, 35-44, 45-54, 55+

Why Swivel

The Canton of Swabia is one of the twelve jurisdictions of central Switzerland. Those who intend to open a business in this Canton must interface with the cantonal and municipal authorities for local taxation, while direct federal tax (DFT) and value added tax (VAT) follow federal law. Registration with the cantonal office of the trade register is the first formal step.

Svitto applies a cantonal tax law and a municipal multiplier that varies from one municipality to another, as is the case in the rest of Switzerland: each municipality multiplies the cantonal tax with a

Operational details

Registration and tax obligations

After registration in the trade register, the new entrepreneur receives an IDI (business identification) number and is registered ex officio in the VAT and AVS registers. If the annual turnover exceeds the threshold of CHF 2,500 (taxable services), registration in the VAT register is mandatory. VAT registration is always mandatory for legal entities.

The IFD is a federal tax, managed by the AFC with progressive rates. Cantonal and municipal taxes are levied by cantonal tax administrations: in the case of Swift, by the Cantonal Tax Administration of the Swift Canton. The three levels (federal, cantonal, municipal) are summed up in the annual declaration.

Personnel costs

Employees must register as an employer with the AVS Compensation Funds and the Unemployment Fund. Compulsory wage contributions in Switzerland are:

Contribution	Employee Rate	Employer Rate	Total
AVS/AI/IPG	5.3%	5.3%	10.6%
AD (unemployment)	1.1%	1.1%	up to the annual ceiling
LAINF/LAA	–	0.7–1.5%	second sector

For occupational pension (LPP), the minimum contributions on the coordinated salary are:

Age	Minimum contribution
25–34 years	7%
35–44 years	10%
45–54 years	15%
55 years up to the reference age	18%

Operating costs

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 the Canton of Schwyz, the aspiring entrepreneur must follow this procedure:

1. Choice of legal form: evaluate between sole proprietorship, GmbH (Sagl), AG (SA) or partnership, considering capital, liability and administrative costs.

2. Name and articles of association check: for GmbH and AG, a notarised deed of incorporation and articles of association are required, authenticated by a public notary. For GmbH, the minimum initial capital must be paid into a blocked bank account.

3. Entry in the commercial register: the application is submitted to the Commercial Register Office of the Canton of Schwyz (Handelsregisteramt). The articles of association, deed of incorporation, proof of capital payment and, for GmbH, bank confirmation are required. Cantonal registration fees vary; consult the official tariff schedule on the Canton's website.

4. VAT registration: with the Federal Tax Administration (FTA), if taxable turnover exceeds CHF 2,500 or for all legal entities.

5. Social fund registration: AHV compensation fund, unemployment fund, SUVA for accidents (mandatory from the first employee). Employers must affiliate with a compensation fund and pay contributions.

6. Health insurance (LAMal/KVG): every resident — owner and family members — must take out a basic policy within three months of arrival or start of business. Standard annual deductibles range from CHF 300 to CHF 2,500.

7. Sector-specific authorisations: some activities (catering, healthcare, construction, transport) require additional cantonal or federal permits.

Deadlines and obligations

After starting up, the entrepreneur must:

…

Frequently Asked Questions

What is the minimum capital to open a Sagl or SA in Switzerland?: For a Sagl the minimum share capital is CHF 20,000, of which at least CHF 10,000 paid up. For an SA the minimum capital is CHF 100,000, of which at least CHF 50,000 paid up. Sole proprietorships and partnerships do not require minimum statutory capital, but the entrepreneur responds with personal assets.
When is registration in the VAT register mandatory?: Registration in the VAT register is mandatory if the annual turnover exceeds CHF 2,500 of taxable services. VAT registration is always mandatory for all legal entities (SAGL and SA), regardless of turnover.
What wage contributions must an employer make in Switzerland?: The main contributions are: AVS/AI/IPG at 5.3% at the expense of the employee and 5.3% at the expense of the employer (total 10.6%); AD at 1.1% for both parties up to the annual ceiling; LAINF/LAA from 0.7% to 1.5% at the expense of the employer alone, depending on the sector. For the LPP, the minimum contributions range from 7% (25-34 years) to 18% (from 55 years to the reference age).
Within how many months of the start of activity should LAMal be stipulated?: Compulsory health insurance (LAMal) must be taken out within three months of arrival or commencement of activity. Premiums are per capita and vary by Canton and region; the Canton of Schwyz provides for premium reductions for modest incomes.
What is the first formal step to open a business in the Canton of Schwyz?: The first formal step is the registration at the cantonal office of the commercial register (Handelsregisteramt) of the Canton of Schwyz. After registration, the new entrepreneur receives an IDI number and is registered ex officio in the VAT and AVS registers.