1. Commercial Register
Registering your business in the commercial register is a mandatory step for most types of businesses in Switzerland. This official registration provides legal recognition to your business and makes it publicly known. Here are the key steps involved:
- Choose the Legal Structure: Before registering, decide on the legal structure of your business (e.g., sole proprietorship, partnership, corporation).
- Prepare the Documentation: Gather all necessary documents, including your business plan, articles of association, and identification documents of the business owners.
- Submit the Application: Submit your application to the commercial register office in the canton where your business will be located. This can often be done online.
- Publication: Once your application is approved, your business will be published in the Swiss Official Gazette of Commerce, making it officially registered.
- Fees: Be prepared to pay the registration fees, which vary depending on the canton and the legal structure of your business.
2. VAT Registration
Registering for Value Added Tax (VAT) is essential for businesses in Switzerland that meet certain turnover thresholds. VAT is a consumption tax levied on the value added to goods and services. Key steps include:
- Determine VAT Liability: If your annual turnover exceeds CHF 100,000 from taxable supplies, you must register for VAT. Voluntary registration is also possible for businesses below this threshold.
- Application Process: Submit your application for VAT registration to the Federal Tax Administration (FTA). This can be done online or by mail.
- VAT Number: Once registered, you will receive a VAT number, which must be used on all invoices and official documents.
- Charge and Collect VAT: You must charge VAT on your sales and remit it to the FTA. The standard VAT rate in Switzerland is currently 7.7%, with reduced rates for certain goods and services.
- VAT Returns: Regularly file VAT returns, typically on a quarterly basis, detailing the VAT you have collected and paid.
3. Social Security Contributions
Registering your employees for social security is a crucial step to ensure compliance with Swiss labor laws and to provide necessary benefits to your workforce. Key requirements include:
- AHV/IV/EO Registration: Register your business and employees with the Old-Age and Survivors’ Insurance (AHV), Disability Insurance (IV), and Income Compensation Insurance (EO). This can be done through the cantonal compensation office.
- Accident Insurance: Employers must also register employees for mandatory accident insurance, which covers work-related and non-work-related accidents.
- Pension Fund: If your employees earn more than a certain threshold, you must register them with a pension fund (BVG/LPP) to provide occupational pension benefits.
- Unemployment Insurance: Contributions to unemployment insurance (ALV) are mandatory and must be deducted from employees’ salaries.
- Payroll Deductions: Ensure that all social security contributions are deducted from employees’ salaries and that both employer and employee contributions are paid to the relevant authorities.
- Reporting and Compliance: Regularly report to social security authorities and ensure compliance with all regulatory requirements. Maintain accurate records of all contributions and benefits.
