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Types of Foundation

There are two different ways of starting a business in Germany. Possibly you maintain a business or you are a freelancer. It relies upon what kind of job you do. Whether you work commercially or as a freelancer has an impact on the formalities and the legal form of your company.

For instance, if you need to start your own business with a craft business or a trade, you need to register a business – in the place where the future headquarters of your company is to be. The start-up platform explains what you have to pay attention to.

For certain exercises, you need to do specific admission requirements fulfill. For this situation, one discusses a “business requiring a license”. Requiring a  permit can mean, in addition to other things, that you need to get specific permits, apply for a license or have professional qualifications.

This applies, for instance, to craft businesses, financial service providers, or care services, but also to a whole range of other activities. You can figure out which regions this applies to on the start-up portal.

The BMWi authorities’ aide likewise shows you where you can finish these formalities in your region.

In Germany, a few exercises are delegated to “liberal professions”. Anybody who becomes independently employed here typically works as a freelancer. These incorporate, for instance:

Medical professional activities, for instance as a doctor

Advisory activities in the areas of law, taxes, or economics

Scientific and technical activities, for example as an engineer

Information-conveying or creative activities, for example, those done by interpreters

Educational activities, for instance as an educator.

You can likewise track down an overview of liberal professions on the start-up portal. For certain activities, an assignment to the liberal professions is only possible after checking on a case-by-case basis. The tax office concludes whether your action is freelance or commercial, with which you register your project no later than four weeks after the start. Please also note that some professions require you to have specific qualifications and professional qualifications.

Detailed information on requirements, taxes and the legal forms of freelancers can be tracked down on the website of the start-up platform.

Each organization in Germany has a legal form. The legal form gives an organization the framework for regulating legal matters. The decision where the legal form you need to run your organization has far-reaching consequences – for instance about how much start-up capital you want and whether you are personally liable for your organization.

In the start-up portal, you will find an overview of the legal forms regularly utilized in Germany. The legal form finder of the start-up platform can likewise be useful. Definite information for freelancers is accessible on the website of the start-up platform.

We recommend consulting a lawyer or a tax advisor before making a decision.

You will end up being the boss of your organization in various ways. We’ll name a couple:

Start-up: If you start another organization, you can develop it as indicated by your thoughts. However, this likewise implies that you ought to design your undertaking especially cautiously. Most organizers choose to begin another business.

Founding in a team: Mutual support and higher equity speak in favor of founding with partners. The start-up portal explains what you ought to pay attention to.

Company succession: Advantage from established structures and the existing customer base in an organization whose management you take over. The next initiative and the Succession in Germany portal will furnish you with information and support.

Franchising: This interaction is utilized principally by retail and catering brands who need to expand their sales area without setting up their branch. The German Franchise Association and the start-up portal make sense of how you can become part of this concept.

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