Business registration, change and de-registration
Before you think about registering your own business in Germany and becoming self-employed, we will clarify a few questions and terminology for you that you should know in advance.
What are the advantages of having your own business in Germany?
The advantages cannot be denied. You are practically your own boss and responsible for all of your actions. You have the freedom to choose the general conditions yourself (hourly rate, working hours, duration of deployment, etc ...) and to reject unpleasant orders.
So you only spend time on the jobs of your choice and you are not accountable to anyone.
When do you start your own business in Germany?
So you only spend time on the jobs of your choice and you are not accountable to anyone.
When do you start your own business in Germany?
What is a german business?
Because there is freedom of trade in Germany, anyone can start it´s own business. The formal act begins with the business registration.
When is it better to open a business in Germany and not in your home country?
Reasons for registering a business in Germany:
If you do not yet have a business in your home country and want to work in Germany for the greater part of the year and want to earn more, then a business in Germany is exactly the right thing for you.
This also applies if you want to relocate your main place of residence and permanent residence to Germany. It is worth registering a business in Germany.
If you want to apply for child benefit in Germany, you must be registered in Germany, as a tax "residence" in Germany is required in order to receive child benefit here.
Reasons against registering a business in Germany:
If you are already self-employed in your home country, registering a business in Germany is not worthwhile.
Even if you later want a good pension from your home country, it is rather not worth registering a business in Germany, as here as a self-employed person you are responsible for your pension entitlement and have to pay into the pension fund for at least 5 years in order to be entitled to a pension to get!
When do you have to register my business?
Everyone who intends to make recurring profits in Germany has the obligation to register a business before starting his commercial activity!
In principle, only the liberal professions, i.e. a group of self-employed people with a special status due to their professional activity, are exempt from the obligation to trade.
The then issued business license is the official confirmation that a business has been registered and can be officially operated by you.
In principle, only the liberal professions, i.e. a group of self-employed people with a special status due to their professional activity, are exempt from the obligation to trade.
The then issued business license is the official confirmation that a business has been registered and can be officially operated by you.
Do I need a business plan?
Whether you need a business plan depends on whether you need financing. A business plan is only necessary if you want to convince someone of the sustainability of your business. Banks usually request a business plan if you are to finance self-employment. The business plan consists of two parts, the business concept and the financial plan.
As a rule, however, you do not need a business plan!
As a rule, however, you do not need a business plan!
How do you register a business without permanent residence in Germany?
Here we make it easy for you. Contact us with your plan to register a business! We will then send you the necessary contracts and documents for cooperation.
Which documents are required for the business registration?
We don't need that much preparation from you for a business registration in Germany.
We only need additionally:
Because we do the rest of the business registration for you.
We only need additionally:
- Your written power of attorney that we can represent you officially
- Copy of your ID card
Because we do the rest of the business registration for you.
Where can I get a German permanent establishment from?
Don't worry, we will take this burden off your shoulders and give you a place of business in one of our branches.
You can then use this address on all your correspondence. In addition, we provide you with a communal office at the business premises, where you can do a wide variety of office work.
You can then use this address on all your correspondence. In addition, we provide you with a communal office at the business premises, where you can do a wide variety of office work.
What are the costs of registering a business?
For our business registration, re-registration or de-registration service, we charge you from 40, - € including VAT.
If you switch to us from another office service / accounting office, then the business registration for our permanent establishment is free for you. In addition, we will give you 1-3 months of our office service for free.
If you switch to us from another office service / accounting office, then the business registration for our permanent establishment is free for you. In addition, we will give you 1-3 months of our office service for free.
What is the business tax? When is this due?
If you earn less than € 24,500 in profits in one year and thus remain below the tax exemption, you are exempt from business tax for this year.
Anyone who generates profits from this has to pay tax on the amount in excess. For small businesses there is usually no business tax because they make less profit.
Anyone who generates profits from this has to pay tax on the amount in excess. For small businesses there is usually no business tax because they make less profit.
Do I need a sales tax number (VAT ID)?
If you do not achieve more than € 22,000.00 in profits in the first financial year and not more than € 50,000.00 in the following years, then you are free to choose whether you want to use the small business regulation (according to german §19 UStG) or whether you still want to insist on being issued a VAT ID.
Who is a small business for?
If your clientele consists mainly of private individuals, then they will be happy to receive a gross = net invoice without any VAT.
However, if your customers are mainly business customers, you should think about a VAT ID, as they would rather receive invoices with VAT shown!
Who is a small business for?
If your clientele consists mainly of private individuals, then they will be happy to receive a gross = net invoice without any VAT.
However, if your customers are mainly business customers, you should think about a VAT ID, as they would rather receive invoices with VAT shown!
What about bogus self-employment?
If you're self-employed, then do it right! Anyone who is self-employed must also maintain business relationships with several customers. If you are self-employed and only have business relationships with one customer, you are considered self-employed and risk your self-employed status.
We therefore recommend that you maintain business relationships with at least 3 customers!
We therefore recommend that you maintain business relationships with at least 3 customers!
