Starting a Business

Business registration in Germany: legal form, tax office, business account, insurance and IHK.

1. 1
   Choose a Legal Form

   Decide on a legal form: sole proprietorship (simple, no minimum capital), GbR (with partner), UG (from €1, limited liability) or GmbH (€25,000 share capital). For startup, usually a sole proprietorship is sufficient.

   💡 Freelancers (e.g. doctors, lawyers, artists, IT consultants) do not need business registration — only registration with the tax office.
2. 2
   Business Registration

   Register your business with the competent local authority. Costs: €20-60 depending on the city. Online registration available in many cities. Required: ID card, possibly residence permit with work authorization.

   💡 After registration, IHK/HWK and the tax office will be automatically notified.
3. 3
   Tax Registration Questionnaire

   The tax office will send you a tax registration questionnaire (online via ELSTER). Here you select, among other things, the small business exemption (§19 UStG, up to €22,000 annual revenue without VAT).

   💡 The small business exemption saves bureaucracy, but you cannot deduct input VAT — calculate what's worthwhile for you.
4. 4
   Open a Business Account

   Open a separate business account. Mandatory for corporations (UG/GmbH), recommended for all. Providers: N26 Business, Kontist, Fidor, Sparkasse.

   💡 Separate personal and business finances from the start — this greatly simplifies bookkeeping.
5. 5
   Obtain Insurance

   Mandatory: health insurance, professional liability (depending on industry). Recommended: general liability, legal protection, disability insurance. Check if you are subject to Berufsgenossenschaft membership.

   💡 Compare quotes at Check24 or Clark. General liability insurance often costs only €100-300/year.
6. 6
   IHK/HWK Registration

   As a business operator, you are automatically a member of the IHK (Chamber of Commerce and Industry) or HWK (Chamber of Crafts). Fee: €0 in the first year, then graduated according to revenue.

   💡 The IHK offers free startup consulting — use it before starting your business!