What is the minimum capital required to open a sole proprietorship?

The sole proprietorship does not require a minimum capital: the owner can start with their own funds as they decide. Unlike SA (minimum CHF 100,000) or Sagl (minimum CHF 20,000), the sole proprietorship offers maximum initial flexibility. However, the owner is liable unlimitedly with his personal assets for the debts of the company.

How does the registration in the trade register of Obvaldo work?

Registration takes place by filling in the specific cantonal form for the chosen legal form (sole proprietorship, SA or Sagl) and delivering it to the competent offices of the Canton of Obvaldo, preferably before the start of the activity. Identity document, authenticated signature, and (for SA/Sagl) deed of incorporation and bylaws are required. The registration fee is fixed per canton. Once registered, the company receives official confirmation and registration number.

What are the insurance obligations for those who hire employees?

Employees must register the company with the AVS fund (to pay social security contributions) and accident insurance (SUVA in the private sector). AVS/AI/IPG contributions are 10.6% total (5.3% employee + 5.3% employer); SUVA varies from 0.7% to 1.5% depending on the sector. In addition, each employee must join a pension fund (LPP) with contributions that vary by age group.

Do I need to take out health insurance before I open the business?

If you reside in the Canton of Obvaldo, health insurance is mandatory and must be taken out within 3 months of arrival (or, for those who open a business, within 3 months of starting residence). It is not a tax or a salary contribution, but private insurance at per capita premiums. The Canton applies premium reductions for low-income residents according to its own criteria.

How is business taxation structured in Switzerland?

Taxation operates on three cumulative levels: federal direct tax (IFD) identical throughout Switzerland, cantonal tax (fixed by the Canton of Obvaldo), and municipal tax (applied as a cantonal tax multiplier). This means that the same profit for the year is subject to three simultaneous withdrawals. The total tax burden varies significantly by cantonal and municipal combination.

Opening a business in Obvaldo: guide to legal forms and costs (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 23 August 2026

Entrepreneur preparing registration documents for Swiss business formation.

Complete guide: choice of legal form, registration in the trade register, minimum capital, taxes and insurance obligations (AVS, LAMal, SUVA).

Context

In a nutshell

Three legal forms: sole proprietorship, SA, Sagl — with minimum capital and different obligations
Compulsory registration in the cantonal trade register within the established deadlines
Taxation on three levels: federal, cantonal and municipal
Mandatory AVS/AI/IPG contributions of 5.3% for employees (10.6% total with employer)

Key facts

What: Registration in the trade register and choice of legal form
When: Before starting the activity, within the deadlines set by the cantonal procedure
Where: Canton of Obvaldo, at the competent registration offices
Who: Sole proprietor, SA/SAGL director, or legal representative
Amount: Minimum capital CHF 100,000 for SA, CHF 20,000 for Sagl; no minimum for sole proprietorship

Starting a business in the Canton of Obvaldo requires fundamental choices about the legal structure and compliance with federal and cantonal obligations. The legal form chosen determines the minimum capital required, the accounting obligations and the personal liability of the holder towards third parties.

Legal Forms: Features and Minimum Capital

The sole proprietorship is the simplest form: the owner manages the business on his own, responds unlimitedly with personal assets and does not have to pay a minimum initial capital. The costs of registration in the trade register are low, and the accounting requirements are reduced compared to other forms.

The public limited company (SA)

Operational details

Federal, cantonal and municipal taxation

Business taxation in Switzerland operates on three simultaneous levels. The federal direct tax (IFD) is collected by the Federal Administration of Customs and Taxes (AFC/ESTV) and is identical throughout the national territory. To this is added the cantonal tax and the municipal tax, the latter generally calculated as a percentage multiplier of the cantonal tax.

The Canton of Obvaldo, like every Swiss canton, has its own tax legislation and its own municipal multipliers. This means that the same profit for the year is subject to three cumulative tax levies, the total amount of which varies significantly depending on the cantonal and municipal combination chosen. There is no federal minimum wage; some cantons have established their own, while others leave the bargaining to the parties.

Social security obligations: AVS/AI/IPG and LPP

Those who hire employees must register with the AVS compensation fund and pay the mandatory contributions. The AVS/AI/IPG contribution is 5.3% borne by the employee and 5.3% by the employer (total 10.6%). The contributions for unemployment insurance (AD) and occupational accident insurance (AC) are additional: 1.1% up to a federally fixed annual ceiling.

Employees are also required to join a pension fund (LPP/BVG). Contributions vary by age group: for example, 7% (age

Useful planning tools

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

Key points

Step-by-Step Procedure: From Planning to Registration

Before starting the activity, it is necessary to clearly define the legal form and verify the availability of the desired name at the commercial register. Many cantons and municipalities make online databases available to check in real-time if the name is already registered.

Next, obtain the registration forms for the commercial register of the Canton of Obvaldo. These forms vary slightly depending on the legal form (sole proprietorship, SA, Sagl) and contain personal information of the owner/administrator, business address, description of the economic activity, and authenticated signature.

For a sole proprietorship, the form includes the commercial name, domicile, and branch of activity. For a SA or Sagl, the following are required: the social denomination, address, list of administrators and shareholders, and the amount of capital stock paid in.

Registration with the commercial register has a fixed cost (variable by canton) and must occur before the activity is operational. Once registered, the company receives a registration number and an official confirmation.

In parallel, it is necessary to:

Register with the competent AVS/AI fund (for the payment of social security contributions)
Conclude a health insurance policy within 3 months (if residents in the canton)
Register with the company pension fund, if employees are hired
Register with the federal tax administration for the UID number
Register with the cantonal tax administration for cantonal and municipal taxes

…

Frequently Asked Questions

What is the minimum capital required to open a sole proprietorship?: The sole proprietorship does not require a minimum capital: the owner can start with their own funds as they decide. Unlike SA (minimum CHF 100,000) or Sagl (minimum CHF 20,000), the sole proprietorship offers maximum initial flexibility. However, the owner is liable unlimitedly with his personal assets for the debts of the company.
How does the registration in the trade register of Obvaldo work?: Registration takes place by filling in the specific cantonal form for the chosen legal form (sole proprietorship, SA or Sagl) and delivering it to the competent offices of the Canton of Obvaldo, preferably before the start of the activity. Identity document, authenticated signature, and (for SA/Sagl) deed of incorporation and bylaws are required. The registration fee is fixed per canton. Once registered, the company receives official confirmation and registration number.
What are the insurance obligations for those who hire employees?: Employees must register the company with the AVS fund (to pay social security contributions) and accident insurance (SUVA in the private sector). AVS/AI/IPG contributions are 10.6% total (5.3% employee + 5.3% employer); SUVA varies from 0.7% to 1.5% depending on the sector. In addition, each employee must join a pension fund (LPP) with contributions that vary by age group.
Do I need to take out health insurance before I open the business?: If you reside in the Canton of Obvaldo, health insurance is mandatory and must be taken out within 3 months of arrival (or, for those who open a business, within 3 months of starting residence). It is not a tax or a salary contribution, but private insurance at per capita premiums. The Canton applies premium reductions for low-income residents according to its own criteria.
How is business taxation structured in Switzerland?: Taxation operates on three cumulative levels: federal direct tax (IFD) identical throughout Switzerland, cantonal tax (fixed by the Canton of Obvaldo), and municipal tax (applied as a cantonal tax multiplier). This means that the same profit for the year is subject to three simultaneous withdrawals. The total tax burden varies significantly by cantonal and municipal combination.