Starting a business in Solothurn: registration and costs

Context

In brief

• Legal form, register, minimum capital, and insurance.
• The tax system has three levels: federal, cantonal, and municipal.
• AFC/ESTV handles federal direct tax and VAT; the Canton handles local taxes.
• OASI/IV/EO: 5.3% employee share, 10.6% total.

Key facts

• Territory → Canton of Solothurn
• Tax → Federal direct tax + cantonal tax + municipal tax
• Register → Commercial register entry
• AFC/ESTV → Federal direct tax and VAT
• OASI/IV/EO → 5.3% employee share; 10.6% total
• ALV/AC → 1.1% up to the annual ceiling
• UVG/LAA → 0.7-1.5% depending on the sector
• BVG/LPP → 7%, 10%, 15%, and 18% on the coordinated salary

Three tax levels — federal direct tax, cantonal tax, and municipal tax — serve as the primary map for those wishing to start a business in the Canton of Solothurn. The project includes choosing the legal form, registering with the commercial register, verifying the minimum capital, paying registration fees, and fulfilling insurance obligations. The process starts from the chosen structure and extends to salary management.

The first distinction concerns jurisdiction. The AFC/ESTV manages federal direct tax and VAT. Cantonal administrations handle cantonal and municipal taxes; for municipalities, the mechanism used is a multiplier applied to the cantonal tax. Each Canton has its own law and multiplier: the calculation for Solothurn should therefore not be confused with that of another Canton.

Legal form and register

The commercial register is an independent part of the process. Before finalizing registration, the plan must link the legal form to the minimum capital and the registration fee. These three items answer different questions: which structure is chosen, what minimum capital applies, and what administrative cost must be budgeted. Keeping them separate prevents presenting the initial cost as a single, indistinct amount.

Social security also has a precise scope. The FSIO/BSV covers social security, including OASI/IV/BVG, and does not set taxes. Once the business has employees, the reading of contributions becomes distinct from taxation: OASI/IV/EO, ALV/AC, UVG/LAA, and BVG/LPP are separate items, with bases and percentages indicated individually. The tax return must therefore be placed in the tax block, not the insurance one.

The catalog of authorities does not include the FSO/BFS as a tax authority: the FSO/BFS produces statistics and does not set tax rates. This distinction matters when looking for data for the business plan: the rate and the multiplier must be traced back to the competent authorities, while social security remains within the scope of the FSIO/BSV. For the owner, the result is an initial folder divided into three sections: form and register, taxes, and insurance and salaries.

Operational details

The economic weight of starting a business becomes clear when moving from the setup phase to monthly management. For the Canton of Solothurn, a clear cost plan separates what relates to the legal form, what arises from commercial registry registration, what depends on the three tax levels, and what follows the salary. The municipal multiplier applies to the cantonal tax, as indicated in the tax framework.

When the business has staff

Regarding salary, OASI/IV/EO indicates 5.3% borne by the employee and 10.6% total including the employer. The UI/AC is equal to 1.1% up to the annual ceiling. The UVG/LAA ranges between 0.7% and 1.5% depending on the sector. For the BVG/LPP, on the coordinated salary, the indicated percentages are 7% between 25 and 34 years, 10% between 35 and 44, 15% between 45 and 54, and 18% from 55 years until the reference age. Checking the Swiss payslip helps to avoid adding items that have different bases.

The work calendar adds other budget constraints. There is no federal minimum wage, while some Cantons have their own. The maximum working hours are 45 hours per week for industry, office, and retail, or 50 hours in other sectors. Minimum vacation is four weeks, five for those under 20. Maternity leave provides 14 weeks at 80% via EO; paternity leave is two weeks. Notice periods are one, two, or three months depending on seniority: first year, from the second to the ninth, and from the tenth year onwards.

A separate personal cost

The LAMal/KVG follows a different logic. It is mandatory for residents and must be taken out within three months of arrival. Premiums are per capita, depend on the Canton and region, and can be accompanied by a cantonal reduction; they are neither a tax nor a salary contribution. For this reason, the business plan must distinguish labor costs from personal health coverage. The health insurance fund must therefore be evaluated in the resident's family budget, not on the same line as OASI/AHV contributions.

Useful planning tools

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

Key points

The opening can be transformed into a sequence of checks, keeping the components of the estimate distinct.

The operating sequence

1. Start with the legal form. Record the minimum capital linked to the chosen structure, any registration in the commercial register and the related fee. Do not merge these items: they are needed to assess the start-up cost.

2. Draw up the tax map. Separate direct federal tax (IFD) and VAT, which fall under AFC/ESTV, from cantonal and municipal taxes administered by the cantonal authorities. For the municipality, record the multiplier applied to the cantonal tax.

3. Prepare the salary block if the activity will have staff. Enter AVS/AI/IPG at 5.3% for the employee and 10.6% in total including the employer, AD/AC at 1.1% up to the annual maximum, and LAINF/LAA between 0.7% and 1.5% depending on the sector. Add LPP/BVG on the coordinated salary, with bands of 7%, 10%, 15% and 18% linked to age.

4. Check the applicable labour rules. The limit is 45 hours per week for industry, offices and sales, and 50 in the other sectors. Include four weeks of vacation, five for those under 20, in addition to the 14 weeks of maternity leave at 80% and the two weeks of paternity leave. Notice periods are 1, 2 or 3 months. There is no federal minimum wage; some Cantons have their own.

5. If the owner or an employee is resident, keep LAMal separate from the salary: it is mandatory and must be taken out within three months of arrival. Premiums are per capita, vary by Canton and region, and may be subject to a cantonal reduction; they are not taxes or payroll contributions.

Verification of the residence permit

For a foreign national, SEM distinguishes the short-term L permit, lasting up to one year, the renewable B residence permit, the C settlement permit, normally after 10 years of residence or 5 for EU/EFTA citizens, and the G permit for cross-border commuters. Before linking the activity to the personal situation, identify the correct category and its duration.

In the final check, capital and the register, taxes, salaries, insurance and residence remain separate. Then measure the effect on disposable income with the calcolatore stipendio.