How to Start a Business in Germany: Step-by-Step Guide

Why Germany is a Great Place to Start a Business Germany is the largest economy in Europe and one of the world’s most attractive destinations for business. With a stable economy, strong legal framework, and access to the EU market, it offers great opportunities for entrepreneurs and foreign investors. If you’re thinking about starting a business in Germany, this guide will walk you through the legal, financial, and practical steps you need to take.

Peter Herzig

3/4/20252 min temps de lecture

Step 1: Choose the Right Business Structure

Before registering your company, you must decide on the legal structure that best suits your business. The most common options include:

✅ GmbH (Gesellschaft mit beschränkter Haftung) – The most popular choice for medium-sized businesses, requiring €25,000 in share capital.

✅ UG (Unternehmergesellschaft) – A low-cost alternative to GmbH, requiring only €1 capital, but with additional financial restrictions.

✅ AG (Aktiengesellschaft) – Suitable for large corporations, requiring at least €50,000 capital.

✅ Freelancer (Freiberufler) – For professionals like consultants, doctors, and lawyers with fewer registration requirements.

✅ Sole Proprietorship (Einzelunternehmen) – Easy to start, but comes with unlimited personal liability.

Step 2: Register Your Business (Handelsregister & Gewerbeamt)

Once you decide on the structure, you need to officially register your company in Germany.

📌 Business Registration Process:

1️⃣ Choose a company name – Ensure it’s unique and not already registered.

2️⃣ Prepare legal documents – Articles of association, shareholder agreements, and director appointment.

3️⃣ Notarization – GmbH, UG, and AG companies must have their documents notarized by a German notary.

4️⃣ Register with the Commercial Register (Handelsregister) – Required for GmbH, UG, and AG companies.

5️⃣ Register at the Trade Office (Gewerbeamt) – Mandatory for all businesses, including freelancers.

6️⃣ Get a Tax Number from the Finanzamt – You need a Steuernummer (tax ID) before starting operations.

Step 3: Open a Business Bank Account

In Germany, companies like GmbH, UG, and AG must have a business bank account before completing their registration.

📌 To open a business account, you need:

✔ Company registration certificate (Handelsregisterauszug)

✔ Notarized articles of association

✔ Valid passport & visa (for non-EU residents)

Step 4: Obtain Necessary Licenses & Permits

Some industries require special licenses before operating in Germany.

📌 Examples of regulated industries:

✔ Food & Beverage – Health and safety permits.

✔ Finance & Insurance – BaFin licensing.

✔ Construction & Engineering – Industry-specific certifications.

Step 5: Tax & Accounting Registration

All businesses in Germany must register for taxation and comply with German tax laws.

📌 Tax Obligations:

✔ Corporate Tax (Körperschaftsteuer) – 15% for GmbH & AG.

✔ Trade Tax (Gewerbesteuer) – Varies by city, usually 7-17%.

✔ Value-Added Tax (VAT/Mehrwertsteuer) – 19% standard rate (7% for some goods/services).

Step 6: Hire Employees & Register for Social Security

If you plan to hire staff, you must register with German social security authorities.

📌 Employer Responsibilities:

✔ Register employees for health insurance & pension plans.

✔ Ensure fair wages (comply with Germany’s minimum wage).

✔ Follow employment law regulations (contract rules, probation periods, etc.)