Opening a business in Thurgau: costs and procedure

Context

In brief

• Three tax levels: federal, cantonal and municipal (multiplier on cantonal)
• AVS/AI 5.3% for employees, LPP 7–18% according to age from coordinated salary
• Mandatory registration in the commercial register before starting activity
• LAMal mandatory, deductibles from 300 to 2500 CHF per year, premiums per canton/region

Key facts

• What: Complete procedure to open a company, corporation or other legal form
• Where: Canton of Thurgau (same procedures throughout Switzerland)
• Who: Cantonal registration offices, AFC/ESTV, municipal administration, UFAS/BSV pension
• Legal forms: Sole proprietorship, general partnership, limited partnership, SA, Sàrl, cooperative
• Mandatory contributions: AVS/AI, LAINF (if employees), LPP, LAMal
• Tax levels: IFD federal + cantonal tax + municipal

Starting a business in the Canton of Thurgau follows the same procedures and regulations that apply throughout the Swiss Confederation. Whether you choose to open a sole proprietorship, a limited liability company or a corporation, the administrative and tax path remains structured around three fundamental elements: the choice of legal form, registration in the commercial register, and compliance with tax and insurance obligations. Swiss taxation operates at three distinct levels — federal, cantonal and municipal — and each canton has its own laws and different tax multipliers, although the basic principles remain uniform at the national level.

Legal forms: which to choose

The choice of legal form is the first decisive step. A sole proprietorship allows for agile management and no federal minimum capital requirement, but the owner is personally liable with their own assets. A general partnership binds several partners in joint liability. A limited partnership separates limited partners (limited liability) from managers. A corporation (SA) requires a minimum number of shareholders and capital, offering asset protection through limited liability. A limited liability company (Sàrl) is a hybrid form, suitable for small businesses with multiple owners. Cooperatives remain an option for collaborative models. No form is absolutely better: the choice depends on the number of partners, available capital, the nature of the activity and the desired level of asset protection. A cantonal accountant or notary can guide you in making the most appropriate decision according to your specific case.

Before any other registration, consult the commercial register office of the Canton of Thurgau to verify the specific requirements of the chosen legal form and the procedures for depositing the constitutive documents. Registration in the register is mandatory and must take place before starting the activity. Once registered, the company acquires legal personality and tax rights/obligations.

Operational details

Three-tier taxation and tax registration

 In Switzerland, every entrepreneur is subject to three levels of taxation: the direct federal tax (DFD) administered by the Federal Customs and Tax Administration (FTA/ESTV), the cantonal tax administered by the Thurgau authorities, and the municipal tax, which is calculated using a multiplier applied to the cantonal tax base. The multiplier varies from municipality to municipality: one municipality may have a low multiplier, while a neighboring municipality may have a higher multiplier. This three-tier structure means that the overall tax burden depends both on the chosen geographic location within the canton (such as municipality) and on the applicable federal and cantonal tax rates. There is no federal minimum wage in Switzerland, although some cantons have introduced their own at the cantonal or municipal level: check whether the Canton of Thurgau has minimum wage regulations that apply to you.

 Registration with the Federal Customs Administration for VAT and other federal obligations is mandatory if your annual turnover exceeds the VAT registration threshold (annually indexed amount; see AFC/ESTV for the current figure). If you’re just starting out, you can self-register even below the threshold. Cantonal and municipal tax registration is carried out through the respective Thurgau offices, generally at the same time or shortly after registration in the commercial register. Within the timeframe established by the canton (check deadlines),

Useful planning tools

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

Key points

Step-by-step procedure to start a business

Once you have decided on the legal form, follow these steps in sequence:

1. Constitution and documents: Draw up or have drawn up the constitutive documents (articles of association, statutes, partnership agreement depending on the form). Have the signatures authenticated by the cantonal notary if necessary.

2. Registration with the commercial register: Submit the original documents to the commercial registration office of your canton of Thurgau. Check the official website for the procedures (paper, electronic, opening hours) and registration fees (which vary according to canton and form). Generally, you must indicate: business name, legal form, address of the registered office, partners/managers, business sector.

3. Obtaining the IDE number: Once registered, you will receive the company identification number (IDE) — a unique code to identify the company in the federal registers. Keep this number: it will be needed for all future tax obligations.

4. Federal VAT registration (AFC/ESTV): If you expect turnover above the VAT threshold, or if you voluntarily register, complete the registration form with AFC/ESTV. You can do this online on the federal portal or on paper. You will receive a VAT number.

5. Canton-commune tax registration: Contact the tax office of the Canton of Thurgau and your municipality. They will ask for a copy of the commercial registration, IDE, tax IDE if applicable, and information about partners/managers. You will complete a declaration on the form of management and source of income.

6. AVS/AI registration: If you are self-employed, you must register with the AVS compensation fund of your canton. Provide a copy of the commercial registration, extract from the register, and personal data. You will receive an AVS number for self-employed management with a progressive contribution rate.

7. Accident insurance (LAINF): If you hire employees, you must take out accident insurance with SUVA or a registered private insurer. If you are a sole proprietorship without employees, LAINF is optional but recommended. Register before hiring your first employee.

8. Professional pension scheme (LPP/BVG): If you hire employees, you must affiliate the company with a pension fund (pension institution, foundation, collective solution, insurance). They provide the policy, regulations, and guide you through the payment procedures. Check with an accountant which form is most efficient for your case.

9. Business bank account: Open a current account with a Swiss bank in the name of the company (provide constitutive documents, IDE, copy of commercial registration). Necessary to separate personal and business transactions.

10. LAMal subscription: You and any employees must take out compulsory health insurance with a health insurance fund. You can choose from providers in your canton/region. Couples/families get reduced rates if they sign up together. Check for cantonal subsidies for low incomes.

11. Accounting and first declaration: Open an accounting register (mandatory for companies; also recommended for sole proprietorships). Record each transaction. Keep invoices, receipts, bank statements. Within the deadlines set by the canton (generally within 3–4 months of the calendar year), you must submit the tax return (cantonal model) attaching the balance sheet (if accounting obligation) or simplified statement.

⚠️ Deadlines: The procedures listed above have different timelines: commercial registration is immediate (hours/days), federal VAT takes 1–2 weeks, AVS/AI similarly, cantonal taxes within 1 month, LAINF and LPP must be completed before hiring the first employee. Do not postpone these obligations: the authorities charge penalties for omissions.

Useful tools and next steps

To calculate the AVS/AI and LPP contribution burden on your projected income, use the salary and pension calculator. Remember that contributions change every year (indexed figures). To delve into the second and third pillars and plan your pension as a self-employed person, consult the Pensions and Provision section. To understand the LAMal options and compare premiums, use the health insurance tool.

Finally, rely on a cantonal tax advisor or accountant for an audit of the chosen legal form, tax optimization, and administrative-accounting management. The initial investment in consulting will save you costly mistakes along the way.

Official sources: Cantonal tax multipliers and rates (FTA) · Switzerland–Italy tax agreement (Fedlex) · Old-age insurance system (FSIO)