How to open a kindergarten in Germany: A guide to your childcare centre

 

What is the best legal form for your new Kita?

Kitas are usually established using one of the following legal forms.

Opening a Kita as a non-profit GmbH

Forming a gGmbH is a common alternative to opening a Kita as an association 💬Verein. A gGmbH is a non-profit GmbH, a legal company form with limited liability. Just like a gGmbH, kindergartens exist to pursue a charitable purpose. gGmbHs may take the form of care, cultural or educational facilities.

The gGmbH enjoys tax privilegesand is partially exempt from certain taxes. Only the gGmbH’s share capital (minimum €25,000) is at risk, not the shareholders’ private assets. If you can’t provide enough share capital for a gGmbH you can choose a gUG, the non-profit equivalent to a UG. This legal form requires a minum share capital of €1 per shareholder.

Opening a Kita as a non-profit association

The advantages of opening a childcare centre as an association are the association’s limited liability and the tax privileges you enjoy as the centre’s founder. This legal form requires you to find seven founding members and draw up articles of association. Private Kitas are often founded as the result of a parent initiative aimed at improving their local childcare situation.

Associations are partially exempt from certain taxes. There is also relatively little bureaucracy to deal with when founding the association, and no share capital is required to get started.

How do I register a Kita?

Opening and registering your Kita business

Whichever legal form you choose, you will need to register your Kita with your local trade office. Then you need to do your tax registration online via ELSTER. Once the tax office has checked your documents, you’ll receive your tax number, which you need to send out invoices. Find out here how to write a German invoice.

If you set up your Kita as an association, you will only need to register your business when it generates enough income to become subject to VAT. If this is the case, consult a tax adviser.

Do I need to enter my Kita in the commercial register?

The commercial register is a public index of registered merchants and incorporated entities under the jurisdiction of their respective registry court. Corporations like the GmbH and gGmbH as well as all merchants must be entered.

Trade insurance institutions & Kitas

As carriers of German statutory accident insurance, employer liability insurance associations 💬Berufsgenossenschaften (BGs) are responsible for companies and their employees. If you open a Kita, register yourself with the appropriate institution. In your case, that would be the Berufsgenossenschaft für Gesundheitsdienst und Wohlfahrtspflege (social accident insurance institution for health and welfare services).

If you have further questions, the German statutory accident insurance umbrella association, the DGUV (Deutsche Gesetzliche Unfallversicherung) can be reached under +49 800 60 50 40 4.

Federal associations for Kitas

We recommend membership in the Bundesverband für Kindertagespflege e.V.–Germany’s federal daycare association.

 

Licences you need to open a Kita

• Business licence 💬Betriebserlaubnis: Your local youth welfare office issues this licence once all conditions are met. To apply, you must submit a comprehensive business concept outlining your pedagogical objectives, your professional qualifications, and examples of daily routines and educational activities.
• Suitable commercial building: Your Kita must be housed in premises approved for commercial use, meeting safety, accessibility and space requirements. A detailed financial plan is also essential, especially if you intend to form a company for the operation.
• Non-profit status (optional): If you plan to open the Kita as a gGmbH or an association, you must also submit an application for non-profit status.

 

How to create a business plan for a Kita

A strong Kita business plan must convince parents with a clear pedagogical concept and reassure authorities and partners with a sound financial plan. Below you’ll find the key elements you should address when developing a professional and future-proof foundation for your childcare centre.

Your pedagogical concept

Whether your Kita follows a specific educational approach, participates in initiatives such as ‘Haus der kleinen Forscher’, or integrates field trips to museums and observatories, the pedagogical concept should be clearly defined. Many centres also offer foreign language programmes or specialised activities. All of this should be documented in your plan.

Outdoor space and play areas

Children need plenty of time outdoors. When selecting a location, make sure there is sufficient outdoor space, ideally your own garden or playground. Only in rare cases can a Kita operate without such facilities.

Staffing: Who will work with the children?

Your team is a core part of your concept. Clarify whether you will employ trained educators, qualified teachers, interns or assistants, and explain how staff will support your educational goals.

Food and nutrition concept

With families becoming increasingly health-conscious, many parents expect fresh, healthy meals. Consider whether you will prepare food on-site, offer a meal programme, or cooperate with a local caterer.

Opening a Kita: Important aspects of your finance plan

Every new Kita requires substantial capital. Government support may be available, but only if your project is already included in the youth welfare office’s requirements plan (Jugendamt). Your local office is the best source of information regarding funding programmes from federal states and municipalities.

Your financial plan should address the following costs:

• Capital requirements for the initial phase
• Consulting, legal and administrative costs during the founding period
• Furnishing costs (furniture, toys, hygiene products)
• Ongoing operating costs (rent, electricity, heating, IT)
• Taxes and insurance
• Financial reserves for unexpected events

How should I shape my childcare concept?

Anyone thinking about opening a Kita must develop a childcare concept that clearly answers the following questions:

• What is your pedagogical vision?
• Who are the childcare practitioners?
• What learning opportunities will be offered?
• Will spots be offered to children with special needs?
• How large will the groups be?
• How much influence will parents have?
• What age group will be served?
• How will business days and holidays be handled?
• How will children be settled into your new Kita?
• What special rules will be defined (mandatory vaccination, etc.)?
• How will daily routines be managed?

 

What should I look for in a Kita location?

Choosing the right location for your Kita is crucial. The legal requirements for childcare facilities are strict, especially regarding building safety and child protection. When evaluating a property, several mandatory criteria must be met.

These include features such as safe stairways and secure group rooms where children can move and play without risk. An outdoor area is typically required, or at minimum, a playground within close walking distance. You must also ensure there are enough washrooms and child-friendly toilets, based on the number of children you plan to enrol.

In addition, a suitable Kita location needs designated nap areas, as well as a buggy storage room. These are considered essential components of a compliant and functional childcare environment.

 

How many people should my Kita employ?

Staffing levels in a Kita are legally regulated to ensure every child receives adequate support and supervision. Each federal state sets its own child-to-staff ratio, but as a general guideline, the average ratio for Kita-aged children is 1 childcare professional for every 6 children (1:6).

Beyond meeting the legal minimum, a high-quality Kita relies on trained and qualified professionals, such as certified educators and early childhood teachers. Ensuring that your team is both adequately staffed and professionally qualified is essential for providing safe, responsible and development-focused childcare.

 

Can I open a Kita in Germany without a pedagogical background?

 

Yes. As a founder, you are not required to have a formal degree in education. However, you must demonstrate to the youth welfare office that your Kita will employ qualified pedagogical professionals who meet all regulatory requirements. Many Kitas are founded by parents who recognise the high demand for childcare places and want to create an additional option for their community.

Who will your Kita serve?

Like any business, your Kita needs a clearly defined target group. Your business plan should specify who will be offered places and which age groups you intend to serve. Consider the following questions:

• What age groups will my Kita accommodate?
• Will I offer integration places for children with special needs?
• Does my concept cater to a specific profile of families, such as those who value nature-focused learning or bilingual education?

Answering these questions early will help shape a clear educational and operational concept for your Kita.

 

How should I advertise my newly founded Kita?

In most federal states, the demand for childcare places is higher than the supply, so filling your Kita spots is usually not a challenge. Once your Kita is officially registered, the youth welfare office will include it in their official Kita list, which is one of the first places parents look when planning childcare — either after the birth of their child or when parental leave ends.

Many municipalities also operate a Kita-Planer, an online platform where all childcare centres are listed and where parents can search for and reserve available spots.

Even though demand is high, it is still wise to create a professional website for your Kita. A clear and friendly online presence helps parents get a strong first impression of your concept, values and facilities, and strengthens your credibility as a childcare provider.