6 August 2021, text: Simon Gantner, photo: Depositphotos
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.
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, where the partners have to provide for their retirement income themselves. The self-employed can pay 20% of their annual income – up to a maximum of CHF 34,416 – 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.
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:
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.
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 many potential sources of loss or damage. A tailored package solution protects your business from the consequences of a range of risks, allowing you to focus all your attention on what really matters – shaping and developing the business. Some of the key elements of such a solution solution are:
One thing is clear: the 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. That is why Helvetia recommends you seek professional advice as early as possible and obtain a customized solution from a single source.