I am planning to start a small business producing and selling handmade natural cosmetics. I find it a little difficult to understand, where I need to register my sole trading activity. I especially would like to understand what is necessary and what is a good/nice to do thing. As I used to work as a freelancer, I already have a tax number with the Finanzamt. Please would you be able to shed some light on what it necessary for me to do.
www.make-it-in-germany.com provides international professionals with information on working and living in Germany. Detailed information on setting up a business are also available on “Make it in Germany”: http://www.make-it-in-germany.com/en/for-qualified-professionals/working/setting-up-a-business-in-germany/visa-for-self-employment
In Germany, there are two ways of setting up a business: you are either self-employed (“Gewerbetreibender”), or you are a freelancer (“Freiberufler”). You do not get a choice in this matter - it depends on your profession. Being self-employed or a freelancer makes a difference with regard to certain formalities and also has an impact in your company’s legal structure. Read more about the two ways of setting up a business: http://www.make-it-in-germany.com/en/for-qualified-professionals/working/setting-up-a-business-in-germany/ways-of-setting-up-your-business#self-employed-or-freelance
Besides that, keep in mind that each business in Germany has its own legal structure. The legal structure provides a framework for dealing with legal matters (http://www.make-it-in-germany.com/en/for-qualified-professionals/working/setting-up-a-business-in-germany/ways-of-setting-up-your-business#legal-structures). The decision on the legal structure of your business has significant implications - it will for example determine how much equity you need and whether you are personally liable for your business. Before you choose a legal form for your business, it may make sense to consult a lawyer or tax advisor. You can also turn to information centers for entrepreneurs:
On the Startup Portal, under “advice and information”, you will find the contact information of regional and national information centers for entrepreneurs with a migrant background (https://www.existenzgruender.de/DE/Service/Beratung-Adressen/Linksammlung/Gruender-innen-Migrationshintergrund/inhalt.html). A general contact list is available on the Startup Portal (http://www.existenzgruender.de/DE/Weg-in-die-Selbstaendigkeit/Entscheidung/Beratung/Beratung-finden/inhalt.htm). Similarly, the Authority Finder will also tell you about your nearest information center: http://www.existenzgruender.de/FR/Die-ersten-Schritte/Beratung-Information/inhalt.html
Please note: If you are not a resident of the European Union and you do not hold a settlement permit, you might have to clear up first, if your current residence status enables you to establish a start-up activity. This would be important, for example, if your current residence permit was only issued for a specific purpose. Therefore we recommend you to contact your Foreigner’s authority (“Ausländerbehörde”) or to get first information through the hotline “Working and Living in Germany” (http://www.make-it-in-germany.com/en/for-qualified-professionals/about-the-portal/contact/hotline) under the telephone number +49 30 1815 – 1111.
More step by step information regarding setting up a business in Germany are available on the website "Make it in Germany": http://www.make-it-in-germany.com/en/for-qualified-professionals/working/setting-up-a-business-in-Germany
We wish you all the best.
* Please note:
The information presented here is a general service offering. Only the German missions and the foreigners’ authorities are responsible for the issuance of visa resp. residence permits. For further questions, please contact directly the respective authority.
Source: Justina Alichniewicz
Projekt „Make it in Germany“
Institut der deutschen Wirtschaft Köln e.V.
Februar 2018
