Starting a business in Bern, Switzerland’s capital city, involves several legal and administrative processes. Entrepreneurs need to obtain the required business licenses and permits to ensure compliance with regulations at the federal, cantonal, and municipal levels. This comprehensive guide provides detailed insights into the types of licenses and permits needed, the process of obtaining them, associated costs, and the timeline for approval. Whether you are an emerging entrepreneur or an experienced business person, this blog will walk you through the essential steps of starting a business in Bern.
Overview of Bern’s Business Environment
Bern, the political center of Switzerland, offers a robust and diversified economy with a focus on government services, technology, and innovation. The city is home to many small and medium enterprises (SMEs) and offers favorable conditions for new businesses. However, establishing a business here requires thorough planning and adherence to Swiss laws, including acquiring the necessary business licenses and permits.
Choosing the Right Business Structure
The first step to starting a business in Bern is selecting the legal structure that suits your company’s needs. Each structure has different registration processes and permit requirements. The most common business structures in Switzerland include:
- Sole Proprietorship (Einzelfirma): Best for small businesses run by individuals.
- Limited Liability Company (GmbH): Ideal for small to medium-sized businesses, offering liability protection for shareholders.
- Public Limited Company (AG): Suitable for larger companies with shareholders and significant capital investment.
- Branch Office: Foreign companies looking to establish a presence in Switzerland may opt for a branch office.
Once you’ve selected your business structure, you can begin the process of securing the necessary licenses and permits to operate legally.
Federal Business Permits
The Swiss federal government imposes a number of requirements that apply to all businesses in the country, including those in Bern. Here are the key permits and licenses required at the federal level.
1. Commercial Registry (Handelsregister)
All businesses operating in Bern must register with the Swiss Commercial Registry (Handelsregister). This registration ensures that your business is legally recognized and can operate within Switzerland.
- Application Process: Submit the necessary documentation outlining your business’s legal structure, ownership, and purpose to the Bern Commercial Registry Office.
- Cost: Registration costs typically range from CHF 600 to CHF 1,000, depending on the business structure and size.
- Timeline: The process generally takes 5-10 business days.
2. VAT Registration (Mehrwertsteuer)
Businesses with an annual turnover exceeding CHF 100,000 must register for Value Added Tax (VAT) with the Swiss Federal Tax Administration. VAT is charged on taxable goods and services, and businesses are responsible for collecting and remitting this tax.
- Application Process: Register online through the Federal Tax Administration’s website.
- Cost: There is no direct cost for registration, but you are responsible for remitting VAT at the standard rate of 7.7% (or lower rates for specific industries).
- Timeline: Registration typically takes 1-2 weeks.
3. Social Security Registration (AHV/IV)
Employers must register with Switzerland’s social security system (AHV/IV) to ensure compliance with pension and disability insurance contributions for employees.
- Application Process: Register through the Swiss Compensation Office.
- Cost: Employers contribute around 5.275% of employee salaries to the AHV/IV system.
- Timeline: The registration process generally takes 2-4 weeks.
Cantonal Business Permits in Bern
The Canton of Bern imposes additional regulations and permits for businesses operating within its jurisdiction. Here are some of the key permits required at the cantonal level.
1. Building and Zoning Permits
If you are planning to construct, renovate, or modify a commercial property for your business, you must obtain the appropriate building and zoning permits from the Canton of Bern. These permits ensure that your building complies with safety, environmental, and zoning regulations.
- Application Process: Submit your plans to the Bern Building Department (Bauinspektorat) for approval.
- Cost: The cost for building permits ranges from CHF 500 to CHF 10,000, depending on the scale and complexity of the project.
- Timeline: The approval process generally takes 4-8 weeks.
2. Environmental Permits
If your business operations have the potential to impact the environment (e.g., manufacturing, waste disposal), you will need an environmental permit from the Canton of Bern.
- Application Process: Submit an environmental impact assessment to the Cantonal Environment Office.
- Cost: Fees vary depending on the size and nature of the business, typically starting at CHF 1,000.
- Timeline: Approval can take 4-12 weeks, depending on the complexity of the project.
3. Health and Safety Permits
Certain industries, such as food service, healthcare, and manufacturing, must comply with health and safety regulations. If your business falls into one of these sectors, you must obtain health and safety permits from the Bern Health Department.
- Application Process: Submit your application to the Bern Health Department (Gesundheitsamt).
- Cost: Fees vary based on the business size and the nature of the industry, ranging from CHF 200 to CHF 2,000.
- Timeline: Health and safety permits are typically issued within 2-4 weeks.
Municipal (City of Bern) Business Permits
In addition to federal and cantonal requirements, businesses in Bern must comply with municipal regulations. Below are key permits that must be obtained at the city level.
1. Local Business License (Gewerbebewilligung)
Most businesses operating in Bern will require a local business license from the City of Bern. This license ensures that your business complies with local trade and industry regulations.
- Application Process: Apply to the Bern Office of Economic Affairs (Wirtschaftsamt).
- Cost: Business license fees range from CHF 100 to CHF 1,000, depending on the size and nature of the business.
- Timeline: Approval typically takes 1-2 weeks.
2. Alcohol License (Gastgewerbegesetz)
If your business involves the sale of alcohol, such as a restaurant or bar, you must obtain an alcohol license from the City of Bern.
- Application Process: Submit your application to the Bern Department of Commerce (Handelsamt).
- Cost: Fees for alcohol licenses range from CHF 200 to CHF 2,000, depending on the type of establishment.
- Timeline: The approval process typically takes 2-4 weeks.
3. Outdoor Seating and Signage Permits
If your business involves outdoor seating or requires signage, you must obtain additional permits from the City of Bern.
- Application Process: Applications for outdoor seating and signage permits are submitted to the Bern Department of Public Space (Öffentlicher Raum).
- Cost: Fees for these permits typically range from CHF 100 to CHF 500.
- Timeline: Approval generally takes 1-3 weeks.
Industry-Specific Licenses
Certain industries in Bern have additional licensing requirements, depending on the nature of the business. Below are examples of industry-specific permits that may be required.
1. Financial Services License
Bern is home to numerous financial institutions, and businesses in this sector require a financial services license from the Swiss Financial Market Supervisory Authority (FINMA).
- Application Process: Submit detailed business plans, financial records, and proof of capital to FINMA.
- Cost: Application fees can range from CHF 5,000 to CHF 50,000, depending on the size and type of the financial institution.
- Timeline: Approval can take 3-6 months.
2. Pharmaceutical and Medical Licenses
Businesses in the pharmaceutical or healthcare sector must obtain a license from Swissmedic, the Swiss agency responsible for the regulation of therapeutic products.
- Application Process: Submit detailed product descriptions, safety protocols, and operational plans to Swissmedic.
- Cost: Application fees range from CHF 2,000 to CHF 15,000, depending on the nature of the business.
- Timeline: Licensing typically takes 3-6 months.
3. Hospitality Licenses
Businesses in the hospitality sector, such as hotels, restaurants, and catering services, require additional permits relating to food safety, hygiene, and service regulations.
- Application Process: Submit your application to the local health and safety authorities in Bern.
- Cost: Fees for hospitality licenses vary, typically ranging from CHF 500 to CHF 5,000.
- Timeline: The approval process generally takes 2-4 weeks.
Steps to Obtain Business Licenses and Permits
Below is a step-by-step guide to help you navigate the process of obtaining business licenses and permits in Bern.
- Select Your Business Structure: Choose the legal form of your business (Sole Proprietorship, GmbH, AG, etc.).
- Register with the Commercial Registry: Complete the registration process through the Swiss Commercial Registry.
- Apply for VAT and Social Security: Ensure you register for VAT (if applicable) and social security contributions.
- Obtain Cantonal Permits: Apply for any required building, zoning, environmental, or health permits from the Canton of Bern.
- Apply for Municipal Permits: Obtain your local business license and other necessary permits from the City of Bern.
- Secure Industry-Specific Licenses: For regulated industries, ensure that you obtain the appropriate licenses from FINMA, Swissmedic, or other relevant authorities.
Costs and Timelines Overview
| License/Permit | Cost (CHF) | Timeline (weeks) |
|---|---|---|
| Commercial Registry | 600 – 1,000 | 1-2 weeks |
| VAT Registration | No cost | 1-2 weeks |
| Social Security Registration | Varies (based on salary) | 2-4 weeks |
| Building/Zoning Permit | 500 – 10,000 | 4-8 weeks |
| Business License | 100 – 1,000 | 1-2 weeks |
| Alcohol License | 200 – 2,000 | 2-4 weeks |
Conclusion
Starting a business in Bern, Switzerland, requires careful planning and strict adherence to federal, cantonal, and municipal regulations. By following the necessary procedures to obtain licenses and permits, entrepreneurs can ensure that their business operates legally and efficiently. Bern’s strategic location as the capital city, combined with its strong economy and regulatory framework, makes it an attractive destination for businesses across various sectors. With the right preparation, your business can thrive in this historic and economically vibrant city.
