Before you start a business in Germany, you need to finish a couple of formalities. These likewise rely upon whether you need to pursue a commercial or professional activity. Freelancers register with the tax office. If you have any desire to run a business, first contact the local trade office in your municipality. You need to visit offices and where to find it in your area, shows you the Behördenwegweiser.
Kindly note: It is in some cases not that simple to manage with authorities. Nevertheless, you shouldn’t manage without their support. So be ready – this is the most effective way to be helped. Complete the formalities in good time. Also: Don’t fear bureaucracy and learn about mandatory registrations and permits in advance!
At the point when you set up an organization in Germany, you as a rule likewise need to pay taxes to the tax office, for example to the local tax authority. The assessments you need to pay to depend, in addition to other things, on the size and legal form ((Connection: 4.2)) of your business and the amount of your income.
You will find an overview of the various types of tax in the company portal. You can find more information about taxes in Germany on the website of the Hamburg Chamber of Commerce.
What’s more, you should present an annual tax return for your organization to your tax office, in which you disclose all income and sales.
Tip: Get guidance from a tax advisor to avoid mistakes and possibly tax debts. The tax office likewise helps clarify tax issues.
Working independently likewise implies that you have to take care of a lot yourself. This incorporates your protection – for instance in the event of illness or unemployment – but also the company’s protection. Theft, burst water pipes, fire damage: incidents like these are rare, but can quickly threaten the very existence of young companies in particular.
Health insurance and accident insurance as well as old-age provision and occupational security are therefore indispensable.
The start-up portal makes sense of which insurances are important to you.
From the rental agreement for your office space to product liability – as an entrepreneur, you need to manage many contracts, laws, and regulations in Germany. The big advantage: If all business processes are contractually stipulated, this guarantees a high degree of legal security.
An overview of all the important laws and contracts that influence you as an entrepreneur can be found in the start-up portal. The Chambers of Commerce and Industry can likewise give you further information.
You ought to contact a lawyer for detailed advice.
If you want to employ people in your company, you need to notice a few rules and regulations. To have the option to hire staff, you first need a company number. You can figure out how to get this and which steps actually should be taken at the start-up portal. Remember that as an employer in Germany you are obliged to pay taxes and social security contributions on every wage payment.
You should likewise notice specific legal provisions about your employees. For instance, you need to pay your employees wages even when they are sick; likewise, your employees have the right to vacation. It is also important that employees cannot be dismissed without further ado. You should be well informed about your duties towards employees.