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Frage

I am currently working full time in a company and I would like to turn my hobby in a small business. I want to make handmade candles and sell them on the internet. What should I do for this to be legal? Do I need to make a Gewerbe?

Antwort

In Germany, there are two ways of setting up a business: you can either work as a freelancer (“Freiberufler”) or set up a business as a self-employed entrepreneur (“Gewerbe”). Being self-employed or a freelancer makes a difference with regard to certain formalities and has an impact in your company’s legal structure. Your local tax office will decide whether your profession is considered “freiberuflich” or “gewerblich”, once you register your business at the latest four weeks after you started your activities. Here you will find out more about the two different 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

Regarding your residential status: If you are a citizen of the European Union, you are generally free to start up your own business in Germany. If you are not a citizen of the European Union and you do not hold a permanent resident permit (http://www.make-it-in-germany.com/en/for-qualified-professionals/visa), you should get in touch with your competent authority (“Ausländerbehörde”) regarding your residential status and check, whether your current work permit allows you to set up a business or whether you may have to change to another residential status before taking up the freelance job. To get some personal advice, you can also contact the hotline “Working and Living in Germany” under the telephone number +49 30 1815 - 1111.

Besides, there are many public information centers, which will advise you as you set up your own business. 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/Gruendung-vorbereiten/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

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

Source: Justina Alichniewicz
Projekt „Make it in Germany“
Institut der deutschen Wirtschaft Köln e.V.
November 2017

Notice of the editor:

• English version of the business start-up portal: Formalities and public authorities