Business Registration

Generally speaking, your business in Germany must be registered with the commercial register (Handelsregister) and the local trade office (Gewerbeamt).

With the exception of civil law partnerships, freelance professionals, and dependant branch offices, all other establishment forms mentioned above have to register with the commercial register.

Any business must then be registered with the local trade office (Gewerbeamt) of the municipality in which the business is located. This applies to every company regardless of its company form (except freelance professionals).

The commercial register is administered by the local courts (Amtsgericht) and ensures legal certainty in trade by providing a record of all current and legal business relationships. The register can be inspected free of charge at the local court. Since 2007, the commercial register has been converted into electronic form.

The commercial register provides information on all legally relevant facts that might be important for a business partner of a business person or company. This includes, for example:

• Company name
• Name of the owner and/or of the personally liable partners of a partnership
• Liability of the limited partners
• Share capital of the GmbH
• Granting and withdrawal of general powers of attorney (Prokura)
• Institution of bankruptcy proceedings
• De-registration of the company

Any application for entry into the commercial register must be submitted by a German notary in certified and electronic form. If a company is legally required to be registered, but takes up business operations before being entered in the commercial register, the partners are personally liable for any losses up to the point of registration. This also applies to both GmbH and AG company forms.

The cost for registration and publication in the commercial register for a partnership is currently EUR 250 minimum. For a GmbH, this amount is at least EUR 400, and for an AG at least EUR 500. Additional costs are incurred through the use of a notary.

The Federal Chamber of German Civil Law Notaries (Bundesnotarkammer) provides an overview of German notaries.

In 2007 an electronic company register (Unternehmensregister) was introduced. Certain data from the commercial register are compiled centrally in this register. This information can be retrieved online at the company register website.

The electronic company register is for informational purposes only. It does not release the companies from their continued obligation to file notarized registrations with the commercial register.

Every company - regardless of its company form* - is obliged to register with the local trade office (Gewerbeamt) of the municipality in which the business is located.

A business license or permit is not necessary for registering the business in the majority of cases. For some business sectors, a permit or authorization might be required (e.g. public houses and restaurants, insurance companies, manufacture of medicaments).

The fee for entry into the trade register for business activities not requiring a license is between EUR 20 and EUR 40. The fee for businesses requiring a license depends on the sector the business is operating in.

Some business activities might require a craftsmen's card (Handwerkskarte) for registering with the trade office. The German Trade and Crafts Code (Handwerksordnung) classifies business activities which require a craftsmen’s card.

Business activities and occupations which need a craftsmen's card are, for example, bakers, carpenters, and precision engineers. A craftsmen's card is issued by the local chamber of skilled craft (Handwerkskammer).

The trade office generally forwards the registration to the tax authority, the regional association of professional trading associations, and the chambers of industry and commerce (Industrie- und Handelskammer, IHK) or the chambers of skilled craft. Chamber membership is automatic and mandatory.

Chambers in Germany perform more than just typical association tasks. They are: 

• representing the interests of their member companies in dealings with the government
• taking on interim and final examinations for employee training
• drawing up reports for courts and authorities regarding for instance company names

The costs for chamber membership are based on the company's turnover.