Authorisation under § 112 BGB

In short: With the authorisation under § 112 BGB, parents allow their child to run a business independently. With the family court’s approval, the minor then has full legal capacity for all transactions that the business involves.

In more detail: The law expressly provides for this extension of legal capacity: if the legal representative authorises a minor, with the approval of the family court, to run a business independently, the minor has unrestricted legal capacity for transactions the business brings with it. Excluded are transactions for which even parents would need court approval (e.g. real estate).

In detail

• Only for the business: for private transactions (phone contract, loan) you stay a minor with limited capacity.
• Withdrawal: parents can withdraw the authorisation, also only with family court approval.
• Both parents: with joint custody both sign.
• Exceptions: real estate deals, larger loans and similar transactions still need approval.
• Example: a pupil sells self-built furniture. With authorisation they may buy material, conclude contracts with customers and issue invoices without their parents agreeing every time.

See also: Family court approval, Parental consent (§ 107 BGB), Liability limit for minors (§ 1629a BGB)