Social insurance – the key is your company’s legal form

Sole proprietorship, general partnership, limited company or stock corporation? The rules for social insurance differ, depending on the legal form you choose when setting up your company. The OASI/IV information office can answer FAQs and provide information on the common types of legal entity and the social insurance obligations they entail.

Partnerships: what is and isn’t mandatory?

The advantages are readily apparent: a sole proprietorship or general partnership is easy to found and no minimum capital is required. But what’s the position when it comes to social insurance? When a business is established, OASI checks its legal form. If the new business is a partnership, the owners must take account of the following:

In the case of a corporation or limited company, occupational benefits are handled via a pension fund. Things are different with a partnership: business owners have to arrange their own pension plans. The self-employed can pay 20% of their annual income – up to a maximum of CHF 36,288 – into a Pillar 3a solution. Self-employed persons who want to remain insured in a pension fund can also join either the pension fund of their respective professional association or the Substitute Occupational Benefit Institution.

Corporations – watch out for gaps in cover

Those working for limited companies and stock corporations, including the company’s owners, are automatically classified as salaried employees for social insurance purposes. That means the following types of insurance are mandatory:

• OASI/IV/LEC (Pillar 1)
• Family allowance
• Unemployment insurance
• Pension fund – from an annual income of CHF 21,510
  Important: insurance obligation – begins at the earliest on 1 January of the year after the employee reaches the age of 17 (contribution for risks of death and disability) and, for retirement pensions, at the earliest on 1 January after reaching the age of 24 (savings contribution)
• Occupational accidents (AIA)
• Non-occupational accidents – from eight hours’ work for the employer per week
• Daily sickness benefits – if stipulated in the collective employment agreement
  

Compulsory pension insurance always prescribes minimum benefits only. It is thus worth checking right at the outset whether these minimum benefits are adequate in all areas. Better benefits than offered in the basic contract may be needed, particularly as regards the pension fund, accident insurance and daily sickness benefits.

Even though private pension provision – Pillar 3 – is voluntary, it’s worth investing in. You can use a private Pillar 3 pension to close further gaps in cover and provide for your dependants, partner and residential property . There are also tax advantages. Thus, setting aside money for retirement enables you to lead an independent life in old age.

Specific solutions for different risks

Who covers damage caused by fire, water or storms? And what happens if your company is broken into or an accident occurs involving machinery? These are just two examples of potential loss or damage. A tailored solution protects your business from the consequences of a range of risks, allowing you to focus all your attention on your core competencies – shaping and developing the business.

he type of insurance and pension provision you need is closely correlated with the type of business you are in and with your firm’s legal form. Talk to an expert. Together, you will identify risks and find the right solutions for the needs of your start-up.

IFJ and Helvetia: a strong partnership for start-ups

The Institute for Young Entrepreneurs (IFJ) is a pioneer in the area of start-ups and supports 3,000 prospective entrepreneurs every year on their path to founding a company. The IFJ makes the start-up process uncomplicated and affordable thanks to discounted and in some cases free courses. Helvetia has been supporting the IFJ as a premium partner since 2020 and offers generous premium discounts for start-ups. Helvetia is thus working together with the IFJ for the sustainable development of the Swiss start-up landscape.