A business must be registered for several legal and organisational reasons:
Legal basis: In Germany, business registration is required by law. Anyone who takes up a commercial activity is obliged to register it with the relevant authorities in accordance with the Trade, Commerce and Industry Regulation Act (GewO). This serves to monitor economic activities and ensure that they take place within the framework of the applicable laws.
Tax recordingBusiness registration also informs the tax office and other authorities. The tax office requires this information in order to register the trader for tax purposes and to levy the corresponding taxes (e.g. trade tax). Without registration, the tax registration and taxation of income could not be carried out correctly.
Social securityTradespeople can also be included in social security systems, such as pension or health insurance, if these are mandatory for the respective entrepreneur.
Authorisation for certain activitiesRegistration is a prerequisite for obtaining a business licence in some sectors, such as property trading or the security industry. Certain activities may only be carried out with a corresponding licence, which is linked to registration.
Transparency and consumer protectionBusiness registration creates transparency about business activities and protects consumers. It ensures that businesses are officially registered and therefore easier to check.
Who has to register commercially and what is required
Anyone intending to become self-employed or start a business activity in a company must register a trade at the beginning of their self-employment. This applies, for example, to
Retailer
Service provider
Operators of online shops
Restaurateurs
Craftsman
In the case of a corporation (e.g. GmbH or UG), the managing director registers the business.
Freelancers are an exception: If the planned activity is classified as a liberal profession, you do not need to register a business. You can find out whether your activity is classified as a liberal profession in the list of catalogue professions in Section 18 EStG. Freelancers do not have to register with the trade office, but with the tax office in order to start their self-employment.
Holding companies, i.e. companies with the corporate purpose of “managing their own assets”, are also exempt from the obligation to register a business.
Documents for business registration
A business registration can be completed online in Berlin and in other federal states at the relevant trade office (this is usually part of the citizens’ registration office or residents’ registration office) without an appointment. However, it is important that you bring the necessary documents with you to the registration.
You should have the following documents ready for business registration:
For everyone: Identity card or passport together with a registration certificate, as well as a valid credit card for the payment of the fee of 15 euros
Für GmbH und andere Kapitalgesellschaften oder oHG: An extract from the commercial register
For foreign founders: A valid residence permit
Certain professional groups must also submit additional documents in order to successfully register the trade. In special cases, such as industries that require monitoring or trades that require a special licence, additional requirements must be met. A business licence in accordance with § 34c of the Trade, Commerce and Industry Regulation Act (GewO) is required particularly frequently.
Business registration step by step
As in other articles, we have taken screenshots to help you with the business registration step by step:
1. go to the website of the Berlin administration
Step 18: Last step: Now it’s time for the payment process.
It will then take one to two weeks until your business is registered. You will be notified of this. This notification is also known as a trade licence.
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