Opening a business in Solothurn: costs and procedures (cross-border guide)

Context

In short

• Four legal forms available: sole proprietorship, LLC, Corporation, cooperative
• Mandatory registration with the federal commercial register, centralized procedure
• Minimum capital CHF 20'000 for Corporation and LLC (at least half paid before registration)
• Federal insurance obligations: AHV/AI/IPG, LAMal, LAINF, LPP

Key facts

• What: Opening and registering activities in the Canton of Solothurn
• Where: Swiss federal commercial register (managed by the cantons)
• Who: Swiss citizens, permanent residents, foreigners with work permit
• Legal forms: Sole proprietorship, LLC, Corporation, cooperative
• Minimum capital: CHF 20'000 for Corporation and LLC
• AHV/AI/IPG contributions: 5.3% employee (10.6% total with employer)
• Maximum hours: 45 hours/week (industry, offices, sales) or 50 hours other sectors
• LAMal: Mandatory insurance for residents within 3 months of arrival

Opening a business in the Canton of Solothurn means navigating a federal and cantonal administrative system with uniform national regulations. Switzerland does not have a federal minimum wage — some cantons have their own — but requires registration with the federal commercial register, choice of legal form, and compliance with mandatory insurance and tax obligations.

The four legal forms

The choice of legal structure is the first critical step. Each form has different implications for liability, taxation, and administrative complexity.

The sole proprietorship is the simplest form: the entrepreneur is a natural person, with unlimited liability for business debts. It does not require minimum capital, but personal assets remain exposed. Ideal for freelancers and professionals who want reduced initial costs.

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Operational details

Minimum capital and registration fees

The minimum capital thresholds are set at the federal level for legal uniformity, but the registration fees for the commercial register are managed by the cantons, so they vary.

For a limited liability company, the minimum capital is CHF 20,000. At least half (CHF 10,000) must be deposited in a Swiss bank before registration. The remainder can be paid within 5 years without penalty, provided it is paid according to the company's regulations.

For a joint-stock company, the minimum capital is identical: CHF 20,000. Half must be deposited before registration.

A sole proprietorship has no mandatory minimum capital, making it a low initial cost option.

The registration fees for the commercial register in the Canton of Solothurn vary according to the legal form and the declared capital. It is advisable to contact the Solothurn Canton Commercial Register Office directly for exact amounts and updated procedures, as the rates can be reviewed annually.

The three-tier tax system

Anyone opening a business in Switzerland faces a tax burden determined by three levels of government:

Federal level: Federal direct tax (FDT) on individuals or business profits. Managed by the Federal Customs Administration. The rate is progressive and varies with income.

Canton level: Cantonal income and capital tax. In the Canton of Solothurn, it is managed by the cantonal administration. Rates vary significantly among Swiss cantons.

Municipal level: Multiplier applied to the cantonal tax. Each municipality applies its own multiplier, making the final rate variable even within the same canton of Solothurn. A common multiplier of 1.5 means that the cantonal tax is multiplied by 1.5 at the municipal level.

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Key points

Federal and cantonal insurance obligations

Anyone starting a business and hiring employees must comply with mandatory federal insurance obligations.

Health insurance (LAMal): Mandatory for all residents in Switzerland within 3 months of arrival. Premiums are private, per capita, and not deductible as salary contributions. Adult deductibles range from CHF 300, 500, 1000, 1500, 2000, 2500. Each canton offers premium reductions (subsidies) based on income bracket. In the Canton of Solothurn, subsidies are managed by the cantonal administration.

AVS/AI/IPG (mandatory pension): For each employee, the employer contributes 5.3% (matching the employee's 5.3%). The total amount is 10.6% of gross salary. Included: AVS 2.2% (employee) + AI 0.7% (employee) + IPG 0.5% (employee) + Unemployment reserve 1.1% (employee) + identical percentages for the employer.

Accident insurance (LAINF/LAA): Mandatory if employees are hired for more than 8 hours per week. The rate varies by economic sector: 0.7–1.5% of gross salary. For high-risk sectors, the rate is higher. Managed by SUVA or authorized private insurers.

Unemployment insurance (AD/AC): Mandatory for employees with a salary above a minimum threshold. Total contribution 1.1% up to an annual maximum. Employee and employer pay equal shares.

Professional pension (LPP/BVG): Mandatory for employees with a coordinated salary ≥CHF 22,050 annually (figure indexed each year). Contribution rates vary by age bracket: 7% (25–34 years), 10% (35–44 years), 15% (45–54 years), 18% (55+ years up to the reference age). Managed by authorized pension funds.

Step-by-step procedure to start a business

Step 1: Choose the legal form most suitable for your business model (sole proprietorship, LLC, corporation, cooperative).

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