What permits do you need for a restaurant or café?
For a restaurant or café in Switzerland, you usually need a hospitality license, a food law notification and, depending on the venue, additional construction, usage or outdoor permits.
Switzerland regulates the hospitality industry heavily at the cantonal level. This means: Whether your permit is called a "Patent", "operating license" or something else depends on the location. However, the same principle applies practically everywhere. As soon as you offer food or drinks for consumption on site for a fee, you should clarify which application is required with the responsible municipality or cantonal office before opening.
Food law must be distinguished from this. This applies throughout Switzerland. Anyone handling food must report the activity to the competent cantonal enforcement authority (Art. 20 Abs. 1 LGV). In the event of important changes in the business that could have an impact on food safety, as well as in the event of a business closure, there is also an obligation to report (Art. 20 Abs. 3 LGV).
An actual food law operating permit is primarily required for certain establishments that handle food of animal origin (Art. 11 Abs. 1 LMG, Art. 21 Abs. 1 LGV). However, many restaurants and cafés are at least subject to registration. Whether an additional permit is required should be checked in the specific business concept.
Why is food law so important?
Food law protects the health of guests, requires hygienic handling of food and protects consumers against deception (Art. 1 LMG).
In practice, this means: You do not only need clean processes during an inspection. You must ensure from the very beginning that purchasing, storage, cooling, preparation, cleaning, allergen declaration and personal hygiene work. Central is the self-control. Anyone who manufactures, treats, stores, transports or dispenses food must ensure that the statutory requirements are met (Art. 26 Abs. 1 LMG). Official control does not replace this duty (Art. 26 Abs. 2 LMG).
This point is often underestimated, especially at the start. A beautiful location is not enough if cold chains, cleaning plans or responsibilities are not documented. Anyone who wants to found a restaurant in Switzerland should therefore develop the hygiene concept in parallel with the business model and not just shortly before the opening.
Do you need a building permit or change of use?
A building permit may be necessary if you convert a venue, install a kitchen, adapt ventilation or exhaust air, plan outdoor seating or use spaces as a catering business for the first time.
The construction law requirements are regulated at cantonal and municipal level. The use of the location is particularly important. A space that has previously been used as a shop, office or warehouse may not automatically be operated as a café or restaurant. A terrace, a boulevard café, new advertising installations, fumoirs, kitchen ventilation or longer opening hours can also trigger additional permits.
The most important practical tip is therefore: Do not blindly sign a long-term lease agreement for a gastronomy venue. Clarify beforehand whether the planned use is permissible, whether structural adaptations can be approved and whether neighbors, noise, exhaust air or monument protection can cause problems.
Which legal form is suitable for a restaurant or café?
Many catering businesses start as a sole proprietorship, LLC or stock corporation. The right legal form depends on how much risk you want to bear, whether you are founding with partners or investors and how much you want to protect your personal assets.
A sole proprietorship is simple and cheap. However, it is personally linked to you. From a turnover of at least CHF 100,000 in the last financial year, a sole proprietorship must be entered in the commercial register (Art. 931 Abs. 1 OR). An LLC or stock corporation, on the other hand, must be entered in the commercial register from the very beginning (Art. 778 OR, Art. 640 OR).
In the case of restaurants and cafés, the question of liability is particularly important. Rental agreements, wage costs, supplier invoices, investments in expansion and equipment as well as potential operational risks can be significant. An LLC or stock corporation can therefore make sense if you want to clearly separate the business from your personal assets. If you need support with the topic of founding, Jurata is happy to help you at any time.
When does your restaurant become liable for VAT?
A restaurant or café is in principle liable for VAT if it operates a business and does not remain below the turnover limit. Anyone who generates less than CHF 100,000 in turnover from taxable services within one year is exempt from tax liability (Art. 10 Abs. 2 lit. a MWSTG).
For companies with their registered office, domicile or permanent establishment in Switzerland, tax liability begins with the commencement of business activity (Art. 14 Abs. 1 lit. a MWSTG). Anyone who becomes subject to tax must register, without being requested to do so, with the Federal Tax Administration within 30 days (Art. 66 Abs. 1 MWSTG).
For gastronomy, it is particularly important which tax rate applies. The standard rate is 8.1 percent (Art. 25 Abs. 1 MWSTG). Food of course is in principle subject to the reduced rate of 2.6 percent (Art. 25 Abs. 2 lit. a Ziff. 2 MWSTG). However, the standard rate applies to food dispensed as part of hospitality services (Art. 25 Abs. 3 MWSTG).
This is the rule for restaurants and cafés. Hospitality services exist in particular when food or drinks are prepared or served or when consumption facilities are available for consumption on the spot (Art. 25 Abs. 3 MWSTG). The Value Added Tax Ordinance specifies that cooking, heating, mixing, preparing and blending count as preparation (Art. 53 Abs. 1 MWSTV). Serving services include arranging on plates, serving drinks, setting and clearing tables as well as serving guests (Art. 53 Abs. 2 MWSTV).
Take-away can be billed at the reduced rate if food is intended for take-away or delivery and appropriate organizational measures are taken for differentiation (Art. 25 Abs. 3 MWSTG). Without clean separation, the standard rate applies. Anyone who wants to found a restaurant in Switzerland and offers both seating and take-away should therefore set up the cash register and bookkeeping correctly right from the start.
What additional accounting and tax obligations arise?
In addition to VAT, you need clean bookkeeping so that you can correctly record profits, wages, social security, supplier costs and tax liabilities.
Legal entities, in particular LLC and stock corporation, are subject to the obligation to keep accounts and file financial statements (Art. 957 Abs. 1 Ziff. 2 OR). Sole proprietorships and partnerships must keep full accounts if they have achieved at least CHF 500,000 in turnover in the last financial year (Art. 957 Abs. 1 Ziff. 1 OR). Below this threshold, simplified accounting of income, expenditure and assets is in principle sufficient for sole proprietorships and partnerships (Art. 957 Abs. 2 Ziff. 1 OR).
In gastronomy, solid bookkeeping also makes sense below the legal thresholds. Cash, card payments, tips, vouchers, delivery services, cost of goods sold, staff meals and take-away can quickly become confusing.
What applies if you employ staff?
As soon as you employ staff, labor law obligations apply. The Employment Act is in principle applicable to private businesses that employ workers (Art. 1 Abs. 1 ArG, Art. 1 Abs. 2 ArG).
To protect health, the employer must take all measures that are necessary by experience, applicable according to the state of technology and appropriate to the conditions of the business (Art. 6 Abs. 1 ArG). He must also design equipment and workflows in such a way that health hazards and overstraining are avoided as far as possible (Art. 6 Abs. 2 ArG).
Working hours are particularly important for restaurants and cafés. Day work and evening work are in principle free of permit, with work from 6 am to 8 pm being day work and work from 8 pm to 11 pm being evening work (Art. 10 Abs. 1 ArG). Night work is in principle prohibited unless an exception applies (Art. 16 ArG). However, the law provides for special provisions for certain businesses, including businesses providing catering (Art. 27 Abs. 2 lit. b ArG). Ordinance 2 to the Employment Act defines catering establishments as establishments that accommodate persons for a fee or supply food or drinks for consumption on the spot (Art. 23 Abs. 3 ArGV 2).
In practice, this means: Duty rosters, breaks, rest periods, Sunday work, night work and supplements must be planned cleanly from the very beginning. Anyone who improvises here risks conflicts with employees and authorities.
What applies specifically in the Canton and City of Zurich?
In the Canton of Zurich, anyone who dispenses food or drinks for consumption on the spot in generally accessible places with commercial intent in principle needs a permit. This also reservation where the business is not profit-seeking. The legal basis can be found in § 2 Gastgewerbegesetz des Kantons Zürich.
There are exceptions, for example for alcohol-free small businesses with a maximum of ten standing or seating places. This exception is in § 3 Gastgewerbegesetz des Kantons Zürich. Anyone planning a very small non-alcoholic café should therefore check exactly whether an exception applies. As soon as alcohol is served or more places are available, the permit question regularly becomes relevant.
The permit is granted if the legal requirements are met. Rooms and facilities of catering establishments must comply with statutory regulations. In addition, the person applying for a permit must have legal capacity. This results from § 6 Gastgewerbegesetz des Kantons Zürich, § 13 Gastgewerbegesetz des Kantons Zürich and § 14 Gastgewerbegesetz des Kantons Zürich.
In the Canton of Zurich, the application for a catering permit must be submitted to the municipal authority four weeks before start of operations. Accompanying documents are, among other things, a certificate of capacity, an extract from the federal central criminal register and a declaration as to whether distilled spirits are served. This results from § 7 der Verordnung zum Gastgewerbegesetz des Kantons Zürich.
If alcohol is served, additional obligations apply. In the Canton of Zurich, the provision of alcoholic beverages to drunk, mentally ill, alcohol- or drug-dependent persons is prohibited. Distilled spirits may not be given to minors under the age of 18. Alcoholic beverages may not be served to minors under the age of 16. These rules are in § 25 Gastgewerbegesetz des Kantons Zürich. For distilled spirits, a levy is also due. This results from § 34 Gastgewerbegesetz des Kantons Zürich, § 35 Gastgewerbegesetz des Kantons Zürich, § 14 der Verordnung zum Gastgewerbegesetz des Kantons Zürich and § 15 der Verordnung zum Gastgewerbegesetz des Kantons Zürich.
The City of Zurich explains on its official page on the Weg zum Restaurant that a catering permit and an operating license are required for a catering business. Before the application, the rooms must comply with statutory regulations. In many cases, a legally binding building permit and a project permit for the gastronomy project are required beforehand. The documents must be submitted in full and at least four weeks before opening.
The operational acceptance is also particularly important in the City of Zurich. According to municipal information on Gastronomie und Lebensmittelbetrieben, a catering business may only be opened after successful structural operational acceptance. Anyone planning a boulevard café on public ground additionally needs a permit for the use of public ground.
What mistakes should you avoid before opening?
The most common mistake is checking permits too late. Especially in the case of conversion, ventilation, outdoor space, serving of alcohol or take-away, several authorities can be involved.
A second mistake is the wrong sequence. Signing a lease agreement first, then planning the conversion, and only asking the authorities shortly before the opening can be expensive. It is better to plan the location, use, construction issues, food registration, hospitality permit and VAT early together.
A third mistake concerns taxes. If on-site consumption and take-away are mixed, a clear distinction is required. Otherwise, the reduced rate for take-away can be lost and the standard rate applies (Art. 25 Abs. 3 MWSTG).
Anyone who wants to found a restaurant in Switzerland should therefore not only plan culinarily but also administratively. Good preparation saves time, money and nerves.
Frequently asked questions about founding a restaurant or café
Do I need a host permit in every canton?
No, requirements differ from canton to canton. Some cantons require a classic host permit or a certificate of capacity, others know other permit models. In the Canton of Zurich, the catering permit is in the foreground. The municipality of the location is in principle responsible.
Do I have to register my café as a food business?
Yes, if you handle food, you must in principle report your activity to the competent cantonal enforcement authority (Art. 20 Abs. 1 LGV). This also applies to many small cafés, take-away businesses and bakery-cafés.
Does the reduced VAT rate always apply to take-away?
No. The reduced rate only applies if food is intended for take-away or delivery and appropriate organizational measures are in place to distinguish it from hospitality services (Art. 25 Abs. 3 MWSTG). Alcoholic beverages are excluded from this.
Am I allowed to open in Zurich before operational acceptance?
In the City of Zurich, a catering business may in principle only be opened after successful structural operational acceptance according to municipal information. Plan the acceptance early and submit the complete application documents in good time.
