If you want to start an (established) business you must report this to the competent authority. The same applies for starting to run a branch office or dependent subsidiary.
Tip: Get advice from your accountant before registering a business
A business is any activity that is not considered socially unworthy, that aims towards gaining profits and is established on a lasting basis. Other criterion: The activity is exercised under one’s own name and billed for. It is not a matter of whether a profit is actually made.
Not classed as business are notably socially unworthy activities (such as clairvoyance), professionals (doctors, lawyers and accountants) and other activities that require a degree from a university or university of applied sciences.
Primary production (e.g. agriculture and forestry), scientific business consultancy and the management of one’s own assets are not considered to be businesses.
The purpose of business registration is so that the responsible authority can fulfil its regulatory and controlling tasks. Registration is also important for statistical surveys.
Please note: Some business activities are subject to a licence; others are subject to monitoring. Special conditions apply to them. Please find out in good time which personal, financial and professional requirements you have to meet in order to be able to work in this commercial sector. If you operate a business subject to authorisation without the required permit, the responsible authority may prohibit you from continuing the business.
A special feature applies to you, for example, if you run vending machine installation as an independent business – you must only register this particular trade with the authority that is locally responsible for the head office.
Timescale/duration
The registration of the business must be reported immediately at the beginning of the commercial activity. Late notification may be prosecuted as an administrative offence.
Who has to report the business?
- An individual business: the tradesperson himself/herself
- Partnerships (e.g. general partnership (OHG), partnership under the Civil Code (BGB-Gesellschaft)): the managing partners
- Companies limited by shares (e.g. limited liability company (GmbH), public limited company (AG)): the legal representative
