Geschäftskonto: How to open a business bank account in Germany

Contents

• What exactly is a Geschäftskonto?
• Who has to open one?
• Why should I open one?
• What should I look for?
• What are the costs?
• What documents do I need?
• SCHUFA
• Business vs. private bank accounts
• Can I use an existing bank account?
• When should I open one?
• Who must be at the bank appointment?
• Is a bank statement enough for the notary?
• How long does it take?
• What else should I keep in mind?
• Checklist
• Want to know more? 

What exactly is a business account?

A business bank account is known as a Geschäftskonto – an account that you open independently of your private bank account when you start a business. A company’s transactions take place in this account. Depending on your company’s legal form, you may be required to pay your Stammkapital (share capital) into a business account. You can open a business account at a branch bank or at a direct bank (a purely digital bank).

Who is required to open a business account?

Business accounts are mandatory for capital companies such as the GmbH or UG. Sole proprietorships, partnerships and freelancers who can do without special services may not need a company account. Special services include participation in direct debit transactions, corporate loans and cheap credit cards, which is why business current accounts can also be significantly more expensive than private accounts. However, an additional account can be advantageous for all business matters to keep an overview.

Why should I open a business account?

If you are a sole trader or freelancer with comparatively few business transactions, a separate account is not always worthwhile, as it may incur costs. However, as soon as your transactions reach a certain volume or you set up as a partnership or corporation, a business account always makes sense, and it may even be mandatory (i.e., for corporations). This is the only way you can separate your company payments from your private payments and keep track of them.

Even for smaller partnerships (such as the GbR), it’s advisable to open a business account, since the tax office (Finanzamt) is granted access to your account through the obligation to provide proof of business payment transactions. If you use your private account for business purposes, you have to both separate the payments in detail and disclose your private payment transactions – not only concerning the burden of proof but also if someone does the accounting for you and then has to distinguish between private and business payments.

For companies with several shareholders, whether as partnerships or corporations, it’s also quite common for several shareholders to make payments via the company account. Ideally, these should not be made via your private account. Using a private account can also make it difficult to see what salary you’re paying yourself.

What should I look for in a business bank account?

Before you open your business account, you should check the costs and fees involved. The following checklist can help you to compare the most important key points of the business accounts offered:

• Costs for opening an account (Kontoeröffnung)
• Fees for account management (Kontoführung)
• Costs for individual bookings (Einzelbuchungen)
• Amount of interest on credit balances (Guthabenverzinsung)
• Line of credit (Kreditrahmen) including at short notice and the fees for it
• Distribution of ATMs and the possibility of withdrawing money from third-party ATMs
• ATM withdrawal fees
• Costs for EC/credit card

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Business account comparison: How much does an account cost?

To give you an idea of what an account for entrepreneurs costs and where you can best open yours, we’ve put together a summary of what’s out on offer in Germany.

(Status: 05.12.2018)
The respective banks reserve the right to adjust conditions and prices at any time. There’s no claim to the conditions specified in this table.

What documents do I need to open a business account?

As an Einzelunternehmen (sole proprietorship), you only need proof of identity to open a business account; your identity card is sufficient. Where appropriate, banks may also require proof of a trade licence. As this is usually not available at the time the account is opened, it must be submitted later.

Freiberufler (liberal professionals) only need proof of identity. Eingetragene Kaufmann (e.K.) (registered commercial trader) must provide a certificate of incorporation and later submit the extract from the commercial register and, if applicable, the trade licence.

Personengesellschaften (partnerships) such as oHG or GbR must submit proof of the identity of all partners in addition to the partnership agreement (Gesellschaftsvertrag) when opening a business account.

For the oHG, the list of partners (Gesellschafterliste), an extract from the commercial register (Handelsregister) and, if applicable, a trade licence (Gewerbeschein) must additionally be submitted.

GbRs do not have to register a business if they consist exclusively of freelancers. In some cases, the trade licence must be submitted to the bank at a later date.

For corporations, on the other hand, the bank requires more documents. Founders of a GmbH, UG or AG must submit not only proof of identity, the list of shareholders (Gesellschafterliste) and articles of association (Gesellschaftervertrag) but also certificates of incorporation (Gründungsurkunden). If necessary, the bank will also request a trade licence (Gewerbeschein). In this case, this must be submitted after the company has been formed.

As the companies to be entered in the commercial register (AG, GmbH, UG, e.K., oHG) are still “in the process of formation” (“in Gründung” – i.G.) at the time of opening the business account, and the entry in the commercial register can only be made after payment of the share capital (Stammkapital), the opening of the account is always subject to reservation. The Handelsregister extract must be submitted after the company account has been opened.

When forming a company as a team, you will still need an account authorisation for the other shareholders or the authorised signatory or signatories – provided that they also plan to use the business account. So consider ahead of time which co-owners should have access to the account and prepare the corresponding powers of attorney.

The required documents may vary from bank to bank, so it’s always a good idea to ask what you need to bring before the bank appointment. Here’s an overview of the documents that are usually requested:

SCHUFA

In modern direct banks, the business account cannot generally be overdrawn in the basic models, which is why no SCHUFA information is required when opening a company account. Founders with low liquidity or perhaps a less-than-ideal credit score therefore always have the opportunity to open a business account on a credit basis – not only in exceptional cases, but with most providers. If your business account is going to be overdrawn, the bank will request some form of credit check before opening the account.

Business bank accounts vs. private accounts

There’s no fundamental difference between a private and a business account because the business account serves the same purpose as a private account. However, the way private and business accounts differ is the transaction fees. A business account’s paper-based (bank transfers, cheques, cash payments) and paperless (online transfers/standing orders, direct debits, etc.) transactions will be charged a corresponding fee for each booking. Although it will cost more, business accounts can be used for direct debit and instant bank transfer, giving your customers more payment flexibility.

Can I use an existing account?

Converting from a private to a business account is theoretically possible, but should be well thought out in advance. Transactions that were made before starting a business can be unnecessarily confusing. It’s, therefore, better for entrepreneurs to set up their businesses with a new account designed for business operations.

Do I open an account before or after the notary appointment?

This depends on the legal form you choose. A company that needs to be entered in the commercial register (Handelsregister), requires a notarised certificate of incorporation to open an account. This must be presented when opening a business account.

After opening a business account, you must send your notary a certificate of payment of the share capital so that he or she can certify it and send it to the commercial register.

Who must be present at the bank appointment?

While some banks require the presence of all authorised representatives, in most cases the presence of the CEO is sufficient. Be sure to have the appropriate powers of attorney if there are shareholders or authorised signatories. Other shareholders or authorised signatories are only entitled to access the business checking account if they have account authorisation. Check with your bank in advance to find out who must be present at the opening so that you can avoid delays.

Can I be represented as CEO at the opening of the company account?

No. As a CEO, you must be present at the opening of your business account. This also serves to verify your signature.

If you open an account with a direct bank, you must also use the PostIdent or VideoIdent procedure yourself and cannot be represented by someone else.

Opening a business account: Will a bank statement be enough for the notary?

When opening a business account, the bank will issue you with a deposit receipt for the paid-in share capital; in some cases, a bank statement will suffice, provided that the deposit/transfer can be seen there.

Find out at your notary appointment what kind of proof you need in order to be prepared for your bank appointment.
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How long does it take to open a bank account?

That depends entirely on where and with which legal form you open your account. In the case of branch banks, checking the documents usually takes less time as they can be checked directly on-site at your appointment.

Opening a business account with a direct bank can take less than two days, depending of course on your legal form and the documents that need to be checked. In addition, when opening a business account with a direct bank, you can easily and quickly identify yourself with the PostIdent or VideoIdent procedure, which further streamlines and shortens the opening process.

What are PostIdent and VideoIdent?

Using the relatively modern PostIdent and VideoIdent procedures, you can confirm your identity for opening an account without having to be at the bank. These procedures are often used by direct banks or if you cannot appear in person at your bank, for example, if you live abroad and cannot appear at the actual bank date.

In order to follow the PostIdent procedure, you must go to a Deutsche Post branch with an ID document. An employee at the counter then carries out the identification.

The VideoIdent process can be done completely from home – but only if you have a device equipped with a camera, such as a laptop with a webcam or smartphone. You then use this device to make a video call to your bank during which you must hold your ID document in the camera. A customer service agent then checks your data.
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What else should I keep in mind when opening a business account?

If your company needs a business bank account that can be accessed by its CEO as well as one or more shareholders, it can be managed as a joint account. In this case, you can choose between an AND account and an OR account. With the AND account, each transaction must be approved by all account holders – however, this procedure is not very practical in day-to-day business. Many entrepreneurs, therefore, opt for the OR account. Here, each account holder can independently dispose of the account and is authorised to execute transactions.

Opening a German bank account as a non-German citizen can also have its challenges, so make sure you do your homework well before you start on any new business ventures.

Geschäftskonto checklist: How to open a business bank account

The following points summarise the procedure and the documents you need to open your company account:

Opening a business account with a branch bank

☑️  Bring all necessary documents with you: Proof of identity as well as, if applicable to your legal form, the notarised certificate of incorporation (Gründungsurkunde), articles of association (Gesellschaftervertrag), list of shareholders (Gesellschafterliste)
☑️  CEOs must be present
☑️  Ideally paid in cash in the original deposit
☑️  Have confirmation of deposit issued
☑️  Send the deposit slip to the notary
☑️  Submit Handelsregister excerpt as soon as available
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Opening a corporate account with a direct bank

☑️  Scan in documents and send them together with the registration form
☑️  CEO identifies himself by PostIdent or VideoIdent
☑️ Make an initial deposit
☑️  Have your deposit confirmation issued
☑️  Send the deposit slip to the notary
☑️  Submit Handelsregister excerpt as soon as available

As soon as you’ve successfully opened your business account, send the receipt for the payment of the share capital to your notary public, who will then arrange for entry in the commercial register. Of course, this step only occurs if you establish a GmbH, UG, AG, oHG or as e. K. sole proprietorships.

What else do you need to know when forming a company? Use our checklist to find out.

Want to know more about business bank accounts in Germany?

Banking

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Opening a German Bank Account as a Non-German Citizen
Why entrepreneurs should have five bank accounts in Germany

Master list of all articles on starting a company

Master list: Company Formation

Checklist for setting up a company

Opening a German business bank account is one of the 22 steps in the company formation process.

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