Opening activities in Soleta: legal forms, costs and procedures

Context

In brief

• Starting a business requires choosing a legal form and registering with the Commercial Register
• Taxation follows three levels: federal, cantonal, and municipal — each canton has its own rates
• Pension (AVS/LPP) and insurance (LAMal, SUVA) obligations are mandatory for businesses and employees

Key facts

• What: Procedure for starting an economic activity with different legal forms
• Where: Canton of Solothurn
• Who: Owner, self-employed, company
• Form: Sole proprietorship, SA, Sarl, simple partnership
• Register: Mandatory registration with the cantonal Commercial Register
• Taxes: Three levels — federal (IFD), cantonal, municipal

--- Starting a business in the Canton of Solothurn requires compliance with administrative, tax, and pension obligations at three levels: federal, cantonal, and municipal. Choosing the legal form is the first decisive step.

Legal forms: sole proprietorship, public limited company, limited liability company

In Switzerland, the entrepreneur chooses between a sole proprietorship (no legal personality, unlimited liability), simple partnership, limited partnership, public limited company (SA) or limited liability company (Sarl). Each form entails substantial differences: a sole proprietorship does not require minimum capital; an Sarl requires at least CHF 20,000 and is a company with legal personality; an SA requires at least CHF 100,000. The choice depends on the nature of the activity, the expected turnover, and the personal risk tolerance.

Registration with the Commercial Register

Registration with the Commercial Register of the Canton of Solothurn is mandatory to operate a commercial or craft business. This public register centralizes the legal identity of the company, the owner, the headquarters, and the legal form. The cantonal administration or the delegated municipal authority manages the registration and issues the trade certificate, a fundamental document for operating legally.

The three levels of taxation: federal, cantonal, municipal

The company becomes a taxable entity at three independent tax levels. The federal direct tax (IFD) is calculated by the Federal Tax Administration (FTA) on the net income. The cantonal tax of the Canton of Solothurn follows local cantonal regulations. The municipal tax is determined by the municipal multiplier applied to the cantonal taxable income. This system implies that the same income is subject to three successive taxations.

Pension and insurance obligations: AVS, LPP, LAMal, SUVA

The company registers with the pension authorities. For each employee, contributions to AVS (Old-Age and Survivors' Insurance) and AI (Disability Insurance) are mandatory. If the coordinated salary exceeds the federal threshold, professional pension (LPP) is mandatory. The sole proprietor pays AVS contributions independently. Health insurance (LAMal) is mandatory for residents. Accident insurance (SUVA) is mandatory if the company has employees.

Operational details

Taxes on three levels

Swiss taxation is not centralized in a single federal rate. The Solothurn company will pay three separate taxes: the federal direct tax (IFD) calculated by the Federal Tax Administration (FTA), the cantonal tax determined by the Canton of Solothurn with its own rates, and the municipal tax calculated on the cantonal income multiplied by the municipal multiplier. Each level has separate deadlines, calculation methods, and payment offices. A single company submits three annual declarations and receives three tax assessments. This three-tier system is stable in all Swiss cantons: no canton has a centralized taxation system.

Pension obligations: AVS, AI, LPP

For each employee hired, the employer is required to pay contributions to the Old-Age and Survivors' Insurance (AVS) and the Disability Insurance (AI). The employee's share is 5.3% of the gross salary, while the employer pays their share of 5.3%, for a total of 10.6%. The contributions are mandatory and paid to the Solothurn Cantonal Pension Fund or an authorized private fund.

Professional Pension (LPP) is mandatory if the coordinated salary (gross salary minus a federal deduction) exceeds the normed minimum. LPP contributions vary according to the insured's age: the employer contributes from 7% to 18% of the coordinated salary, depending on the employee's age class. Additionally, the owner of a sole proprietorship pays AVS contributions on themselves — not from the salary, but on an independent contribution base calculated on net income. This payment is optional if the activity is secondary, mandatory if it is primary.

Health insurance and liability insurance

Health insurance (LAMal) is mandatory for every resident in Switzerland. It is not a salary contribution, but a private policy with a per capita premium: the owner and employees must subscribe to it within three months of starting the activity. The deductibles for adults range from CHF 300 to CHF 2,500 at the insured's choice. LAMal does not cover occupational accidents (competence of SUVA) nor dental care, except for optional coverages. Accident insurance (SUVA or equivalent mutual entity) is mandatory if the company has employees and covers injuries and occupational diseases; the contribution varies by sector of activity.

Useful planning tools

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

Key points

Operational procedure: step by step

The procedure to start a business in the Canton of Solothurn follows a well-defined administrative sequence, to be completed according to specific deadlines.

Phase 1: Choice of legal form — Consult a tax advisor or lawyer to evaluate which legal form (sole proprietorship, LLC, Corporation) is most suitable for the type of activity, available capital, and desired liability. Each form has different tax, accounting, and organizational implications.

Phase 2: Opening a bank account — Before registering with the Commercial Register, open a business account with a Swiss bank. Banks require documentation on the legal form, the articles of association (for companies), and the owner's data.

Phase 3: Registration with the Commercial Register — Contact the Commercial Register office of the Canton of Solothurn at the cantonal administration or the delegated municipal authority. Complete the official registration form and attach documents: certificate of previous trade (if any), identity document, articles of association (for companies). Registration is mandatory; without it, it is not lawful to carry out the activity.

Phase 4: Registration with the AFC — After registration with the Commercial Register, the VAT number/AFC customer number is automatically assigned or upon request. This number is essential for invoicing, VAT obligations, and communication with the Federal Tax Administration.

Phase 5: Registration with social security — Register with the cantonal social security institute of the Canton of Solothurn (or with an authorized private fund) for the employees' AHV/IV. The employer receives an affiliation number and a communication of the payment deadlines (usually monthly or quarterly).

Phase 6: Health insurance — Subscribe to a LAMal policy with a Swiss health insurance fund within three months of starting the activity.

Phase 7: Accident insurance — If the company has employees, conclude an accident insurance contract with SUVA or an equivalent mutual insurance company.

Administrative deadlines and payments

The federal tax return must be submitted to the AFC by the federal deadline (usually March-April of the following year). The Canton of Solothurn and the municipalities set their own deadlines for the cantonal and municipal declarations. The tax installments are communicated following the initial declaration and paid on annual dates set by the administrations.

Social security contributions (AHV/IV/LPP) are paid monthly or quarterly, depending on the agreement with the pension fund. Late payments incur interest and administrative penalties. Always consult local tax advisors in the Canton of Solothurn, who know the specific cantonal and municipal regulations and can guide the entrepreneur through all deadlines and payments.

To estimate the federal, cantonal, and municipal tax burden of your company, it is useful to use tax and salary calculation tools. Tax and social security planning advice helps optimize the company structure and payments. To learn more about professional pension and AHV/LPP obligations, consult the cantonal social security institute of Solothurn directly.