Opening a business in Thurgau: costs and procedure (cross-border guide)

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.

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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.

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