STARTING A BUSINESS IN GERMANY
BUSINESS FORMS
- Einzelunternehmen (Sole proprietorship) — no minimum capital
- GmbH (Limited liability company) — 25,000€ minimum capital
- UG (haftungsbeschränkt) — "mini GmbH", 1€ minimum capital
- GbR (Civil law partnership) — 2+ partners, no minimum
GEWERBEANMELDUNG (Business registration):
- Register at local Gewerbeamt (trade office)
- Cost: 15-65€ depending on city
- Documents: ID/residence permit, completed form
- Freelancers (Freiberufler): register directly at Finanzamt instead
UG (most popular for immigrants):
- Only 1€ minimum capital (but 10,000-15,000€ recommended)
- Must retain 25% of profits until reaching 25,000€
- Notarized articles of association (Gesellschaftsvertrag): ~300-500€
- Handelsregister entry: ~150€
- Business bank account required
FOR NON-EU CITIZENS
- Need residence permit with work authorization
- Self-employment permit (§21 AufenthG): requires viable business plan, sufficient capital, positive economic effect
- Ausländerbehörde + IHK (Chamber of Commerce) evaluate the application
TAXES
- Income tax: 14-45% (progressive)
- Trade tax (Gewerbesteuer): 7-17% depending on municipality
- Corporation tax (GmbH/UG): 15% + 5.5% solidarity surcharge
- VAT (Umsatzsteuer): 19% standard, 7% reduced
- Kleinunternehmerregelung: exempt from VAT if revenue < 22,000€/year
USEFUL LINKS
- Gewerbeanmeldung: local Bürgeramt
- Handelsregister: handelsregister.de
- IHK: ihk.de