It has become much simpler to start a business in Germany in recent years. The bureaucracy has been streamlined, employment rules have been modified to allow for flexible working, and subsidies for young entrepreneurs have been introduced.

In addition, foundations have begun to support research for creative projects, and venture capital is booming like never before. As a result, this is an excellent opportunity to start a business in Germany.

Legal forms in Germany

If you are starting a business in Germany, one of the first things you will need to do is choose a legal form for your company. In Germany, there are various sorts of legal forms (Rechtsformen) for company formations, which may be generally divided into three categories:

Sole proprietorships (Einzelunternehmen)

Partnerships (Personengesellschaften)

Corporations (Kapitalgesellschaften)

Which legal form is ideal for you depends on the sort of business you are starting. If you are unsure, go to your local Point of Single Contact or a lawyer.

Bank account

When you register your firm with the Finanzamt and begin paying taxes, you will require a European bank account. A business account is not required; a regular bank account would suffice.


Opening a German bank account, acquiring the appropriate visa, and obtaining a residency permit are all steps in the process of starting a small business in Germany. After that, you will need to go to the tax office (Finanzamt) to register as a freelancer (Freiberufler) or a tradesman (Gewerbetreibender). Before filing a company registration to the tax office, the majority of individuals will need to get a trade license (Gewerbeschein).

Most business owners will come across the abbreviation GmbH. This is an abbreviation for Gesellschaft mit beschränkter Haftung, which is essentially the same as a limited liability corporation.

Founders of GmbHs must invest 25,000 € in capital or build up their capital from 1 € to the minimum amount. The formation of a GmbH must be notarized, which takes place once the registration procedure is finished. The cost of forming a GmbH in Germany (in the long run) will be 25,000 €, plus a 400 € registration charge and any extra notary fees.

If you are in the process of starting a business in Germany, remember that we are here to help!