What legal forms can you choose to open a business in St. Gallen?

The main legal forms provided for by Swiss law are: sole proprietorship (without minimum capital, unlimited liability), partnerships (simple partnership, in a collective name, limited partnership, without its own legal personality, jointly and severally liable shareholders) and limited liability companies (SA and Sagl, with legal personality and liability limited to the capital contributed). The choice determines minimum capital and administrative complexity.

What documents do I need to register with the trade register in St. Gallen?

The Commercial Registry Office of the Canton of St. Gallen requires for registration: deed of incorporation, articles of association, proof of having contributed capital and identification of persons with the right to sign. For SAGs and SAs, a public deed drawn up by a notary is required. The application must be submitted with the payment of federal and cantonal registration fees.

When do the insurance obligations for the new company start?

The insurance obligations (AVS, LPP, LAMal) start from the incorporation of the company, that is, from the moment of registration in the commercial register. The new entity must affiliate with Swiss social insurance and, if the turnover so requires, register with the AFC for VAT. Registration on a voluntary basis (so-called optional taxation) is also possible below the threshold.

Open a business in St. Gallen: procedure and costs (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 30 August 2026

View of St. Gallen old town with Abbey library

Legal forms, minimum capital, registration in the commercial register and insurance obligations in the Canton of St. Gallen.

Context

In a nutshell

Starting a business in Switzerland requires legal form, capital and registration
The Swiss tax system has three levels: federal, cantonal and municipal
Insurance obligations (AVS, LPP, LAMal) start from the establishment of the company
The cantonal offices manage the registration in the commercial register

Key facts

What: procedure to open a business in the Canton of St. Gallen
When: current administrative procedure
Where: Canton of St. Gallen, Switzerland
Who: future entrepreneur or founder
Amount: minimum capital and registration fees according to the legal form

Those who want to open a business in the Canton of St. Gallen are faced with a defined administrative path: choice of legal form, constitution of capital, registration in the trade register and opening of contributory accounts. Federal Switzerland regulates the types of companies and capital requirements, while the cantons manage the execution of procedures through their trade register offices.

Main legal forms

The sole proprietorship is the simplest form: it does not require minimum capital, but the entrepreneur responds unlimitedly with his own assets. The partnership (simple partnership, partnership, limited partnership) does not have its own legal personality; the shareholders are jointly and severally liable. The limited company — the joint stock company (SA) and the limited warranty company (SAGL)

Operational details

Practical analysis: what changes in the entrepreneur's life

Opening a business in St. Gallen is not just an administrative act: it is the start of a series of recurring obligations towards the Confederation, the Canton and the Municipalities. Understanding the structure of these obligations is essential to avoid penalties and properly plan the treasury.

# Three-tier taxation

Switzerland applies a three-tier tax system: the direct federal tax (DFI) is collected by the Confederation through the AFC; cantonal and municipal taxes are regulated by the legislation of the Canton of St. Gallen and by the municipal multiplier. Each Sangallen municipality applies its own multiplier on the basis of the cantonal tax. For an enterprise, this means three coordinated statements but potentially with different deadlines.

Salary contributions

If the activity involves employees, the employer pays AVS/AI/IPG contributions (10.6% total, of which 5.3% is borne by the employee), AD/AC contributions (1.1% up to the annual ceiling) and LAINF/LAA premiums (between 0.7% and 1.5% depending on the sector). For compulsory occupational pension (LPP), the employer's minimum contributions on the coordinated salary are: 7% (25–34 years), 10% (35–44), 15% (45–54), 18% (55+ up to the reference age). SUVA is the standard insurer for occupational accidents in many industries.

Founder Health Coverage

The founder resident in Switzerland must take out health insurance

Useful planning tools

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

Key points

Operational procedure: how to start the business

Starting a business in the Canton of St. Gallen requires a precise sequence of steps. Here is a practical guide based on the information from the source and on general notions of Swiss law.

Step 1 — Choose the right legal form

The decision influences minimum capital, liability, and administrative complexity. The sole proprietorship (ditta individuale) is suited for low-risk activities; the Sagl (GmbH equivalent) balances asset protection and management simplicity; the SA (AG equivalent) is suitable for projects with many investors or plans for going public.

Step 2 — Draft the articles of incorporation

For SA and Sagl, a notarial public deed is required, including the articles of association, subscribed and paid-in capital, and appointment of the governing bodies (board of directors, audit office if mandatory). For a sole proprietorship and partnerships, a notary is not required.

Step 3 — Deposit the capital

The capital must be paid into a bank account in the name of the new company, or covered by documented contributions in kind. The bank issues a payment confirmation required for registration.

Step 4 — Register with the commercial register

The application for registration must be submitted to the Commercial Register Office of the Canton of St. Gallen, together with the required documents and payment of the federal and cantonal registration fees. The source indicates that these fees are regulated; the exact amounts are not specified in the provided text and must be verified with the cantonal office.

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Frequently Asked Questions

What legal forms can you choose to open a business in St. Gallen?: The main legal forms provided for by Swiss law are: sole proprietorship (without minimum capital, unlimited liability), partnerships (simple partnership, in a collective name, limited partnership, without its own legal personality, jointly and severally liable shareholders) and limited liability companies (SA and Sagl, with legal personality and liability limited to the capital contributed). The choice determines minimum capital and administrative complexity.
What documents do I need to register with the trade register in St. Gallen?: The Commercial Registry Office of the Canton of St. Gallen requires for registration: deed of incorporation, articles of association, proof of having contributed capital and identification of persons with the right to sign. For SAGs and SAs, a public deed drawn up by a notary is required. The application must be submitted with the payment of federal and cantonal registration fees.
When do the insurance obligations for the new company start?: The insurance obligations (AVS, LPP, LAMal) start from the incorporation of the company, that is, from the moment of registration in the commercial register. The new entity must affiliate with Swiss social insurance and, if the turnover so requires, register with the AFC for VAT. Registration on a voluntary basis (so-called optional taxation) is also possible below the threshold.