Business registration in Germany

This European Union (EU) residence permit is usually issued by the responsible foreign nationals department of the local authority after being provided with the necessary documents. First of all, the residence permit is issued for a limited period and then extended until the prerequisites for a permanent residence permit have been fulfilled. The length of the validity period is at the discretion of the authorities. Usually, the residence permit is issued for one year and then extended for two years. Subsequently, it can be extended as a permanent residence permit.

There are special regulations for citizens of countries which have made special agreements with the Federal Republic of Germany (for example Canada, Switzerland).

All other foreigners, to the extent that they are still located in their home countries, must apply for the issue of a unlimited permit, that is, a residence permit which permits the holder to practice a profession, at their relevant German embassy. Foreigners who are already located in Germany must submit an application to the foreign nationals department of the local authority (Ausländerbehörde) to alter the conditions of their visa, that is, deleting the prohibition of professional activity in the permit.

If you want to start up an independent business, you must notify the responsible municipal authority beforehand (office for trade supervision and public order = Gewerbe- und Ordnungsamt). The same applies when you wish to change the nature of your business activity or terminate your business activity altogether.

You can register your business personally or in writing. You can also commission another person to carry this out for you. In the case of a registration of an independent business which in not entered in the trade registry, the business registration attestation is issued in the name of the owner. If the business is entered in the trade registry, the full company name which is entered in the trade registry is also written on the business registration attestation.

With general partnerships (Offene Handelsgesellschaften (OHG), limited partnerships (Kommanditgesellschaft (KG) or private limited liability companies (Gesellschaft mit beschränkter Haftung (GmbH), the company which is entered in the trade registry is also listed on the business registration attestation. In the case of a general partnership or limited partnership, each acting partner is notifiable, whereas with a private limited liability company, only the company acting through the managing director(s) is notifiable.

In case you intend to form a civil law association (Gesellschaft bürgerlichen Rechts (GbR), you must bear in mind that, as a rule, each partner requires a business registration attestation issued in his name.

Please Note!: The business registration is not an authorisation to begin business activity if special permission (for example the licence to run a public house) or registration in the guild roll is required.

After you have registered the business, the municipal authorities informs the local tax office, the employer´s mutual insurance association (Berufsgenossenschaft) and the chamber of industry and commerce accordingly. You automatically become a member of your local chamber of industry and commerce.

Detailed information here is contained under www.invest-in-germany.de