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

Context

In a nutshell

• Choose between individual company, SA, Srl, cooperative based on capital and responsibility
• Compulsory registration with the cantonal trade register Fribourg
• Federal (IFD), cantonal and municipal taxation in 3 levels
• Mandatory LAMal within 3 months; AVS/AI/IPG contributions approx. 10.6%

Key facts

• What: opening a commercial, craft or service business in the Canton of Freiburg
• Where: at the administration/commercial register of the canton of Fribourg
• Who: entrepreneur, individual company, SA, Srl, cooperative
• Legal forms: company (0 min capital), SA (CHF 100,000), Srl (CHF20,000)
• Taxation: 3 levels — federal ESTV, cantonal, municipal (multiplier)
• Deadlines: registration within Freiburg deadlines; LAMal within 3 months; AVS/AI within 30 days
• Obligations: federal/cantonal taxes, social security, LAMal, possible VAT

Starting a business in the Canton of Freiburg requires first of all the choice of legal form. The decision between sole proprietorship, public limited company (SA), limited liability company (Srl), or cooperative depends on the capital needs, personal responsibility and management structure of the company.

Choice of legal form

The sole proprietorship is the simplest form: it requires no minimum capital, and the entrepreneur is personally responsible for his own assets. The SA, on the other hand, requires a minimum share capital of CHF 100,000 (half paid at the time of registration), while the Srl

Operational details

Three-tiered taxation: federal, cantonal, and municipal. The Fribourg entrepreneur faces a three-level taxation system. The Federal Direct Tax (IFD) is managed by the Federal Customs Administration (AFC/ESTV) and is proportional to the net income of the company declared. The Canton of Fribourg applies a cantonal tax on business income, with its own rates and rules set by the Cantonal Parliament. Finally, each municipality in the Canton applies a multiplier on the cantonal base, increasing the overall tax burden in a variable manner depending on the location. The total tax burden therefore depends not only on the legal form and income, but also on the specific municipality of Fribourg chosen for the activity's headquarters. A business in the capital Fribourg City pays different rates and multipliers compared to a reality located in a small mountain town. VAT and invoicing obligations. If the turnover exceeds the federal threshold of around CHF 100,000 per year, it is mandatory to register with the VAT register at the AFC/ESTV (Federal Customs Administration). The standard VAT rate is 8.1%, with reduced VAT rates available for certain sectors such as catering and media. For activities with lower turnover, it is possible but not mandatory to opt voluntarily for VAT if it is convenient. Mandatory health insurance and compulsory old-age insurance. The mandatory health insurance LAMal is mandatory for anyone residing in Switzerland and must be taken out within 3 months of starting the activity with a private insurer. The premiums vary depending on the age of the insured, the canton of residence (Fribourg has specific premiums), and the deductible chosen (CHF 300 to CHF 2,500 per year). It is not a tax or salary contribution, but a private insurance with individual premiums per capita. The Canton of Fribourg can provide subsidies (reduction of premiums) for those with low income. For professional pension insurance (LPP/BVG), if the company hires employees, it is mandatory to affiliate with a pension fund within the legal terms. The entrepreneur himself, if declaring income from independent activity, can opt for an autonomous complementary pension solution (third pillar 3a), with tax deductions that vary by canton and year.

Key points

Checklist operational: from idea to launch

1. Choose legal form — Evaluate whether individual company, SA, Srl or cooperative based on required capital, personal liability and planned size. 2. Draft articles of association/statutes — For SA and Srl, consult a notary for official drafting and authentication. 3. Register with the Fribourg Commercial Register — Present complete forms and documents; receive CHE (Swiss company identification number). 4. Register with the Federal Statistical Office (FSO) — To obtain the required BFS statistical number for official operations and communications. 5. Declare at AFC/ESTV if applicable — Required if turnover exceeds the VAT threshold; register with the Federal VAT Register. 6. Conclude LAMal within 3 months — Choose private insurer, deductible and coverage before the mandatory deadline. 7. Join a pension fund — If employees are hired, contact a pension fund for automatic registration. 8. Register with the AVS Compensation Fund — Pay AVS/AI/IPG contributions on declared net earnings (approx. 10.6% total with employer); usually automatic with CHE number. 9. Submit cantonal and communal tax declaration Fribourg — Complete and submit annual forms according to specific deadlines of the Canton.

Where to inform and useful contacts

For specific details on cantonal and communal taxes, registration costs, exact terms, and Fribourg-specific obligations, it is essential to contact directly:

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