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

Context

In brief

• Three main legal forms (sole proprietorship, LLC, corporation) with different minimum capitals and liabilities
• Registration with the commercial register within 30 days of starting operations
• Taxation on three levels: federal (IFD) + cantonal (Solothurn) + municipal (variable multipliers)
• Mandatory social contributions: AVS/AI 5.3% for employees, SUVA, LAMal within 3 months

Key facts

• What: Starting a business in the canton of Solothurn with commercial registration
• When: Registration within 30 days of starting operations
• Where: Solothurn cantonal commercial register office
• Who: Aspiring entrepreneur residing or with a valid federal permit
• Legal forms: Sole proprietorship (no minimum capital), LLC (min. CHF 20,000), Corporation (min. CHF 100,000)
• AVS/AI contributions: 5.3% of employee salary; 10.6% total with employer

Starting a business in the canton of Solothurn — whether as a sole proprietorship, limited liability company (LLC), or corporation — requires compliance with precise administrative procedures and federal, cantonal, and municipal tax payments. The first step is registration with the cantonal commercial register, mandatory within 30 days of starting operations. Subsequently, tax declaration obligations and social contribution payments (AVS/AI/IPG, SUVA, LAMal, LPP if hiring employees) begin.

Legal forms: which to choose

The choice of legal form depends on the level of personal liability you are willing to accept, the initial capital available, and the organizational complexity of the business.

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Operational details

Federal, cantonal, and municipal taxation

Swiss taxation follows a three-tier model. The direct federal tax (DFT), managed by the Federal Customs Administration (FCA), applies to net income and assets according to federal rates uniform across the country. In the canton of Solothurn, the cantonal tax is levied according to the canton's own rate, which varies from canton to canton. Finally, each municipality applies its own multiplier to the cantonal rate: the taxpayer pays the cantonal tax amount multiplied by the municipal coefficient. The municipal multipliers in Solothurn vary from municipality to municipality; it is essential to verify them with the Tax Office of the municipality where the activity will be conducted before starting operations.

The value-added tax (VAT), managed by the FCA, applies when the turnover exceeds CHF 100,000 in 12 consecutive months (mandatory registration), or voluntary registration can be requested if more convenient for the activity. VAT does not constitute an additional tax cost for the company but rather a periodic declaration procedure (quarterly or annual depending on the chosen regime) with the right to deduct qualified purchases.

Social contributions: AHV, IV, EO, SUVA, LAA, LAMal

If you are the owner of a self-employed activity, you are automatically enrolled in the AHV/IV/EO system (Old-Age and Survivors' Insurance, Disability Insurance; Maternity/Paternity Allowance according to federal law EO). The contributions are:

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Key points

Step-by-step procedure: from registration to first deadlines

Starting a business in the canton of Solothurn requires the orderly completion of these steps:

1. Choose the legal form (sole proprietorship, LLC, Corporation). If you opt for a company, consult a notary or accounting firm for the drafting of the articles of association and the bylaws (mandatory for companies).

2. Register with the commercial register of the canton of Solothurn within 30 days of the actual start of the activity. Provide: valid ID document, articles of association and bylaws (for companies), declaration of start of activity, brief description of the activity, legal address, bank details. Registration involves a cost that varies by canton and municipality (to be verified with the cantonal commercial register office).

3. Register with AVS/AI/IPG within 5 days of hiring the first employee, or immediately if you are self-employed. AVS-100 form available at the cantonal AVS office of the canton of Solothurn. Provide social security number, personal data, company data.

4. Apply for VAT registration (if the estimated turnover exceeds CHF 100,000 annually or voluntary choice). Application with the Federal Customs Administration (FCA/ESTV), form available online.

5. Register staff with SUVA/LAA and ensure accident coverage from the first day of work. Registration with SUVA (if not employed in agriculture) or LAA.

6. Take out health insurance (LAMal) within 3 months of the start of operational activity. Mandatory for the owner and employees resident in Switzerland. Choose a fund from those authorized in the canton, considering the deductible and premium.

7. Periodic payments and declarations:

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