How to start a company in Germany: This is your ultimate roadmap

Before you begin

Before you start registering your business, make sure you’ve prepared these essentials:

• Name: Your business name must follow legal naming rules. For LLCs, request a name check from the local Chamber of Industry and Commerce 💬Industrie- und Handelskammer.
• Business address: Every company must have an official business address in Germany 💬 Geschäftsadresse. Virtual offices may be acceptable in some cases. If you are going for an LLC keep in mind that the selected location will determine your trade tax multipliers—and those vary dramatically from municipality to municipality.
• Business activities: Write a short, clear activity description 💬Unternehmensgegenstand. This determines your tax classification and whether licensing applies. Learn more.
• Documentation: In any case you need valid identification.

📌 Creating a basic business plan 💬Businessplan can help with banking, licensing, and grant applications—even if it’s not legally required.

Key requirements by legal form

* If two or more liberal professionals partner up, your GbR won’t need a trade registration.
** There is an exception for GbRs that hold property.

Liberal profession

Liberal professionals 💬Freiberufler offer non-commercial services typically in the fields of health, education, law, science, or art. These usually require higher education and proof of expertise. Examples include consultants, engineers, architects, and physiotherapists. This regulated group of professions benefits from tax exemptions.

How to register a Freiberufler business

1. Complete the tax registration form via the official tax authority platform ELSTER.
2. Submit your data.
3. If your profession is regulated, register with your professional chamber 💬Berufskammer.
4. Receive your tax number 💬Steuernummer and you are ready to send out invoices.

📌 Liberal professionals are not required to register with the trade office or commercial register. Learn more about Freiberufler here.

Sole proprietorship

Sole proprietorships 💬Einzelunternehmen are a very common way to get a new business started without a lot of preparation. This structure suits individuals running a commercial business on their own. It’s ideal for tradespeople, retailers, and service providers not covered under liberal professions. Here is our deep dive into sole proprietors.

How to register a sole proprietorship

1. File a trade registration 💬Gewerbeanmeldung with your local trade office 💬Gewerbeamt. Learn how.
2. Pay the registration fee (usually €20–60).
3. Receive your trade registration certificate 💬Gewerbeschein.
4. The trade office automatically notifies the tax office and the relevant chamber (IHK or HWK).
5. Complete your tax registration via ELSTER and receive your tax number.

📌 Many trades require additional licenses 💬Gewerbeerlaubnis e.g., such as hospitality, construction, or beauty services. Check regional requirements before offering services.

Civil Law Partnership

The German Civil Law Partnership 💬Gesellschaft bürgerlichen Rechts (GbR) is a simple business partnership between two or more people without limited liability. It’s often used by small consultancies, creatives, and hobby-based ventures. GbRs are not listed in the commercial register and do not require notarisation. Learn more about this legal form.

How to register a civil law partnership

1. Draft a partnership agreement 💬GbR-Vertrag (recommended but not mandatory).
2. Each partner files a trade registration as a sole proprietor💬Gewerbeanmeldung. If you are liberal professionals you can skip this step!
3. Submit a shared tax registration form via ELSTER and apply for a VAT ID, if necessary.
4. Receive a joint tax number.

📌 Licensing or chamber obligations may apply depending on your business sector. Each partner may be subject to different rules. Read our full guide here.

Limited liability company (e.g. UG or GmbH)

LLCs provide limited liability for founders. The UG is a streamlined form requiring less capital, while the GmbH is a standard corporate entity popular for SMEs and startups.

How to register an LLC

1. Choose a company name and get it checked by the Chamber of Commerce.
2. Draft founding documents:
   • Either standard articles 💬Musterprotokoll
   • Or customised articles of incorporation 💬Satzung
3. Attend a notary appointment to formally incorporate the new company.
4. Open a business bank account 💬Geschäftskonto.
5. Deposit share capital 💬Stammkapital:
   • UG: from €1 (realistically €500–1,000)
   • GmbH: €25,000 (at least €12,500 must be paid in)
6. Get a confirmation of deposit from the bank.
7. The notary submits your documents to the commercial register 💬Handelsregister.
8. Once registered:
   • File a trade registration
   • Complete tax registration via the ELSTER platform
   • Register with the transparency register 💬Transparenzregister

📌 Some activities—like financial services, hospitality, or healthcare—require special permits before registration. Apply for these early to avoid delays.

Here are our extensive how-to guides for setting up a UG or GmbH.

Additional steps for non-EU founders

If you’re not an EU or EFTA citizen, you’ll need to:

• Apply for a visa and residence permit 💬Aufenthaltserlaubnis linked to business activity. Check our comprehensive guide to get started.
• Translate and legalise foreign documents (apostille or notarised). Learn more here.
• Start looking for a German business bank account early. Banks in Germany can be cautious when dealing with foreign nationals, especially those from high-risk or conflict regions.

FAQ

What is the fastest way to register a company in Germany?
The fastest way is to register as a sole proprietor or under a liberal profession. These legal forms require no notary and can be set up within 1–2 weeks.

Do I need a business address to register a company in Germany?
Yes. All legal forms require a German business address 💬 Geschäftsadresse. It must be physical and accessible — virtual offices are only accepted in specific cases.

Can I register a company in Germany without living there?
Yes, but additional steps apply. You may need to appoint a legal representative, provide notarised documents with apostilles, and work with banks that accept non-residents.

How much capital do I need to start?
The amount of capital you need depends on your business type. Freiberufler and sole proprietors can often start with very little—just enough to cover basic setup costs like insurance or a business address. If you’re setting up a UG, you can start with a few hundred euros to cover the formation costs. A GmbH requires €25,000 in share capital, with at least €12,500 paid during registration. In all cases, you’ll also need enough working capital to cover early expenses like taxes, rent, and equipment.

Is registering with the tax office enough to run a business?
No. Most business types also require trade registration 💬Gewerbeanmeldung and possibly other registrations, licenses or memberships (e.g. transparency register, insurance providers). Only liberal professionals are exempt from trade office registration.

Do I need a license to start a business in Germany?
That depends on your business activities. Some require special licenses 💬Gewerbeerlaubnis (e.g. catering, crafts, healthcare, financial services). Always check local requirements before operating.