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Starting a company in Germany: legal procedures?

Frage

I am planning to open a company (wellness and tourism) in Germany. I have a general idea and a business plan, but I am not sure abut the legal and accounting procedures.

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 (http://www.make-it-in-germany.com/en/for-qualified-professionals/working/setting-up-a-business-in-germany/ways-of-setting-up-your-business) makes a difference with regard to certain formalities and also 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. Counseling sessions will be provide in English or German.

To get personal advice on legal and accounting procedures we recommend you to get in touch with one of the many public information centers in your region or consult directly a lawyer or tax advisor. You can for example contact the local Chamber of Industry and Commerce (IHK), which is also specialized in supporting new founders: www.ihk.de

Or you can get in touch the Welcome Center of the region Braunschweig, Salzgitter, Wolfsburg and the districts of Gifhorn, Goslar, Helmstedt, Peine and Wolfenbüttel, if this is your place of living (http://welcome-center-der-region.de/?lang=en). The welcome center supports skilled foreign workers, helping them quickly find their way in their new home and workplace and providing useful contact details for specialist advice centers. In addition, the Authority Finder will tell you which authorities you will need to contact in your region (http://www.bmwi-wegweiser.de/bmwibufw/).

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.
Januar 2018

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