Summary
In Germany, trade registration at the local trade office is required for most commercial activities; liberal professions and farming are exceptions. To complete trade registration you file a registration form, show ID, and for companies provide a Commercial Register extract, then receive the Gewerbeschein. The office informs the tax office and the IHK/HWK, and you finish the tax registration. Fees are usually around €20–€60 and you must register before starting operations. Some activities need extra permits or reliability checks (for example crafts or catering).
Contents
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What is a ‘trade’?
The term 💬Gewerbe translates to trade and refers to self-employed activity that is outside the liberal professions (as well as agriculture, forestry, fishing and mining) to earn a profit. You might also see it referred to as ‘commercial business’. As a general rule, all production and processing activities (industry and craft) count as trades.
The German trade act 💬Gewerbeordnung or GewO gives entrepreneurs the right to pursue a trade. Anyone can register a trade, as long as no restrictions prevent you from doing so.
Who is required to register a trade?
Generally, anyone wishing to become self-employed and earn a profit must register with the local trade office 💬Gewerbeamt (§ 14 GewO).
This extends to business activities that have a fixed location 💬stehendes Gewerbe and autonomous or dependent branch offices.
Trade activities pursued as a side business 💬Nebengewerbe must also be registered.
Who is not required to register a trade?
Those in the liberal professions 💬freie Berufe do not need to register with the trade office. Common professionals that carry this label include doctors, journalists and lawyers, for example.
Where do I register my trade?
In Germany, this varies from state to state. Often, you register at the trade office responsible for your business’s district or the public order office 💬Ordnungsamt. Entrepreneurs don’t always have to register in person. Some trade offices allow entrepreneurs to send the application by mail or complete the entire registration process online. Check the web to find your options.
When do I have to register my trade?
Generally, you have to register your trade as soon as your business activities commence. The law states that you have four weeks. Late registrations may be met with fines, though not all trade offices enforce such policies strictly.
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What do I need to be able to register?
Although some entrepreneurs only need to show their ID when registering their trade, there are several professions and activities where industry-specific certifications or permits are additionally needed.
In most cases, you need a master craftsman’s certificate 💬Meisterbrief to work as a craftsman.
Some professions require a special permit to practise on a self-employed basis, e.g. operating gambling arcades, selling weapons or pharmaceuticals. The same goes for when working as an insurance consultant, broker, property developer or travel agent.
💡 ID is the basic requirement for registration. But, depending on your business one or more of the following may be necessary:
Trades requiring supervision
Certain trades require supervision 💬überwachungsbedürftige Gewerbe, they are more strictly regulated. They usually require a police clearance certificate and an excerpt from the central trade register. The latter is necessary for proving that you’ve not violated any trade act regulations, nor have been fined or banned from running a business in the past.
Buying and selling of used goods:
- High-value consumer goods (e.g. entertainment electronics, computers, cameras)
- Motor vehicles and bicycles
- Precious metals, gemstones, pearls and jewellery
- Scrap metal
Services:
- Credit reference agencies
- Private investigation services
- Marriage and relationship brokering
- Operation of travel agencies and accommodation brokering
- Distribution and installation of building security systems, including locksmith services
- Manufacture and sale of specialised tools used for theft-related entry
Trades requiring licenses or additional qualifications
For some trade business owner have to take out special permits or proof certain skills.
- Ambulatory nursing care services
- Taxi companies
- Skilled craft businesses
- Hospitality venues
- Driving schools
- …
Find a full list of trade licenses and all the requirements here.
Regardless of which trade you wish to pursue, find out ahead of time the unique requirements (ie, background checks, licenses, permits, qualifications) of your industry because there might be many more than you think.
How much does it cost to register a trade?
It usually costs between €20 and €60 to register a trade. Each municipality sets its own fee. Find out ahead of time what your competent trade office charges for trade licenses.
If you are registering an LLC such as a GmbH or UG—rather than a simple GbR or a sole proprietorship— you’ll need a certificate of incorporation before registering.
For sole proprietorships, this depends on whether or not you classify as a registered merchant 💬eingetragener Kaufmann, or e.K.
How can I register a trade?
To submit a trade registration form, provide the following details.
- Personal information: name, address, birthplace, etc.
- Name and legal form of the planned business
- Address of the business premises
- Company objective: a description of your planned business activities
- City and number of the commercial register entry, if applicable
- Names of all shareholders/partners, if applicable
- Number of managing partners, if applicable
- Number of legal representatives, if applicable
Documents
- Trade registration form
- Valid ID
- Craftsman’s card, if applicable
- Commercial register entry, for corporations and registered merchants
- Trade license, if applicable
- Police clearance certificate, excerpt from the central trade register, for trades requiring supervision
Afterwards, you’ll receive a stamped copy of the registration form as confirmation or as your trade license.
If you can’t fill out or submit the form in person, you can authorise a third party to do so for you via a power of attorney.
💡 Do your trade registration by submitting the official form. Don’t forget the licences, permits and proof of qualifications that may be obligatory for your trade.
If your company required a commercial register entry, you will need the those registration details as well.
After registration
Tax office
Once you’ve successfully registered your trade, the tax office will contact you for tax registration. This is a form you fill in with specific details about your business activities, working capital, revenue forecast and which bookkeeping and profit calculation you’ll use. This will get you your tax ID number and VAT ID, which is necessary for issuing invoices.
Chamber membership
Your local Chamber of Industry and Commerce 💬Industrie- und Handelskammer or Chamber of Crafts 💬Handwerkskammer will also be in touch with you, as membership is mandatory for most businesses.
Employer liability insurance association
You will have to register with the relevant employer liability insurance association. They provide statutory accident insurance for employers and employees.
Deregistering your trade
If you want to terminate or relocate your business, you have to deregister your trade or change your business’s legal company form.
Depending on your municipality, you may be able to do so online, in person, or by mail. Simply fill out the form with the same details you provided when registering. It doesn’t cost anything to deregister, and you don’t need to submit any additional documents.
Note: The trade registration is one of many steps in the company incorporation process in Germany. Find out what those other steps are here.
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Conclusion
Timely trade registration let’s you start legally and helps avoid fines or shutdowns. Prepare the required documents and register with the correct municipality before you start a business. If you run a company, align with the Commercial Register process and get your tax number quickly. Check whether your activity is regulated and secure needed permits in advance. With careful planning around trade registration you launch faster and stay compliant.
