Starting a business in Graubünden: costs and procedures

Context

In brief

• Three main legal forms: sole proprietorship, simple partnership, limited liability company (LLC)
• Mandatory registration with the Canton of Graubünden commercial register
• Variable costs depending on canton and legal form; taxation at three levels
• Insurance obligations: AHV (9.8%), LAMal, SUVA if you have employees

Key facts

• What: Opening a business in the Canton of Graubünden
• Where: Canton commercial register + federal and cantonal tax authorities
• Who: Sole proprietorship, simple partnership or LLC
• Capital: No minimum for sole proprietorship; variable for partnerships
• Obligations: AHV registration, LAMal, SUVA (if employees), annual tax returns

The legal forms: the fundamental choice

Opening a business in the Canton of Graubünden first requires choosing the legal form. In Switzerland, the main forms are four: sole proprietorship, simple partnership, limited liability company (LLC) and public limited company (PLC).

The sole proprietorship is managed by a single person, who is personally and unlimitedly liable for the company's debts. It does not require a minimum capital and is the simplest structure to set up, but offers less asset protection: the owner's personal credit is exposed to business risks.

The simple partnership (SP) involves at least two partners and is suitable for small collaborations. It does not require a formal minimum capital and provides unlimited and joint liability of the partners, meaning each partner is personally liable for the company's debts.

The limited liability company (LLC) is the most common form for small and medium-sized enterprises. It offers protection of the personal liability of the partners up to the capital contributed. It requires a notarial deed of incorporation and mandatory registration with the commercial register. It is suitable for those who wish to separate personal and business assets.

The public limited company (PLC) is more complex, suitable for companies with high capital. It requires a corporate governance structure (board of directors, shareholders' meeting) and higher capitalization.

Registration with the Canton commercial register

In the Canton of Graubünden, as in the rest of Switzerland, registration with the commercial register is mandatory for all forms of partnerships and for sole proprietorships that carry out commercial activities (excluding non-commercial liberal professions). Registration produces a publicity effect and, for partnerships, confers legal personality.

The required documents depend on the form. For a sole proprietorship, personal data, a description of the activity and a copy of the identity card are needed. For an LLC, the notarial deed of incorporation, the minutes of the constituent assembly and the data of the partners and managers are required.

The registration fees are set at the cantonal level and vary significantly between the twenty-six Swiss cantons. The procedure with the Canton commercial register office usually takes 1–2 weeks.

Operational details

Taxation at three levels: federal, cantonal, municipal

Anyone exercising a commercial activity in Switzerland is subject to three levels of taxes: federal direct tax (FDT), cantonal tax, and municipal tax. In the canton of Graubünden, the cantonal rate is determined by the canton itself, while each municipality applies its own multiplier to the cantonal taxable income. This system means that two entrepreneurs in the same canton but in different municipalities can have slightly different tax burdens.

The FTA (Federal Tax Administration) collects the FDT, while the cantonal administration of Graubünden manages the cantonal tax and reports to the relevant municipalities. Each entrepreneur must submit an annual declaration to the federal tax authorities (by the cantonal deadline, usually late February/early March) and provide complete accounting.

Insurance and contribution obligations

Professional pension AVS/AI is mandatory for self-employed workers. The rate is 9.8% on the net income of the activity (income minus costs). It is not withheld from salary (unlike employees, who pay 5.3% of AVS/AI) and is paid directly to the cantonal AVS fund. Registration is free and must be done within three months of starting the activity.

Professional pension LPP is not mandatory for self-employed workers without employees. However, if you hire employees, you are required to offer professional pension in accordance with federal law. The rate is divided by age groups: 7% for 25–34 years, 10% for 35–44, 15% for 45–54, and 18% for 55 years until the reference age (65 for men, 64 for women).

Accident insurance (SUVA/LAA) is mandatory only if the company has employees and exercises non-agricultural activities. The rate varies between 0.7% and 1.5% depending on the sector and specific risk. For the self-employed worker without employees, coverage is optional but strongly recommended.

Health insurance (LAMal) is mandatory for all residents in Switzerland, including entrepreneurs. Unlike AVS and LPP, it is not a salary contribution but a private insurance with a per capita premium. In the canton of Graubünden, premiums vary by geographic region and by chosen deductible (CHF 300, 500, 1000, 1500, 2000 or 2500 annually). The canton provides subsidies to those with low total income.

Registration with the competent authorities

Registration with AVS as a self-employed worker is done with the cantonal AVS fund of Graubünden or with a private compensation fund recognized by the UFAS/BSV. SUVA is the single insurance entity for accidents in Switzerland. If you hire employees, they must be registered with AVS within three months of the start of the employment relationship.

Useful planning tools

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

Key points

Opening procedure in 7 steps

Step 1: Choosing the legal form Evaluate whether to operate as a sole proprietorship (unlimited liability, less bureaucracy) or as a company (asset protection, greater administrative complexity). For a company (Ltd, SA), a notarial deed will be required.

Step 2: Verifying cantonal requirements Consult the cantonal administration of Graubünden to verify if the activity sector requires special permits or authorizations (business license, health authorization, license for certain sectors, etc.).

Step 3: Registration with the Commercial Register Submit the documents to the cantonal Commercial Register office of Graubünden. Prepare: copy of a valid ID, detailed description of the activity, and (for companies) the notarial deed. The procedure usually takes 1–2 weeks. Once registered, you will receive a registration certificate.

Step 4: Registration with AVS Contact the cantonal AVS fund of Graubünden or a recognized private compensation fund. Provide your personal data, a description of the activity, and the estimated income for the first year. Registration is free and generates an AVS insurance number (retirement number).

Step 5: Insurance coverage If you hire employees, registration with SUVA occurs automatically; you will pay the monthly premiums. Take out private health insurance within 3 months of residence in Switzerland (if you are new to the country). Also consider professional liability insurance to protect your personal assets.

Step 6: Registration with tax authorities Once registered with the Commercial Register, the federal (AFC/ESTV) and cantonal tax authorities are automatically notified. You will receive forms for the annual income declaration. If you hire employees, request a compensation number to pay the AVS/AI contributions of the employees.

Step 7: Registration as an employer (if hiring) If you intend to hire your first employee, register with the cantonal register office. Each employee must be registered with AVS within three months of the start of the employment relationship. You will need to provide a monthly salary certificate and pay the AVS/AI contributions.

Critical deadlines and recurring obligations

LAMal registration: mandatory within 3 months of arrival in Switzerland. Failure to meet this deadline results in significant fines.

Annual tax declaration: must be submitted by the deadlines set by the canton of Graubünden (usually by February 28 or March 31 of the following year). Keep all accounting documentation for at least 7 years.

VAT payment: if the annual turnover exceeds CHF 100,000, VAT registration becomes mandatory. You will need to pay VAT on a monthly or quarterly basis according to the system registered with the AFC/ESTV. Purchase and service costs become deductible (VAT credit).

AVS contribution payment: pay monthly or quarterly to the cantonal AVS fund, according to the schedule set by the compensation fund.

For specialized support, contact the cantonal Commercial Register of Graubünden or an external tax consultant (fees are deductible from taxable income). Many municipal administrations offer free guidance services to new entrepreneurs.

Use the tax and contribution calculator to estimate the tax and contribution burden according to the estimated income of your activity.