Registering a business and self-employment

In short: Anyone who works self-employed in Germany regularly and with the intention of profit usually has to register a business. Freelance professions are excepted and register with the tax office.

In more detail: The business is registered at the municipal trade office (costs usually €20 to €60). Then come the tax registration questionnaire, chamber of commerce membership and possibly trade tax. For software and web projects there are special cases: a programmer who works in an engineer-like way can be a freelancer, for example.

Not legal or tax advice.

In Depth

• Tax registration: The questionnaire at the tax office (ELSTER) sets tax number, VAT type and advance payments (small business regulation).
• Trade tax: an allowance of €24,500 profit for sole proprietors; above it the tax is due.
• Duties: legal notice (imprint), invoices (writing an invoice), bookkeeping, retention (retention periods), data protection (GDPR).
• Insurance: business liability, health insurance, retirement provision.
• Small business: not a separate legal status but a business of small scale.
• Legal form: sole proprietorship, GbR, UG (limited liability), GmbH.
• Separation: A separate business account makes bookkeeping easier (budget book).

See also: Small business regulation, VAT: rates and basic terms