Starting a Business
GmbH formation, procedures, document lists and referral to notaries.
Which route fits me?
Which start-up situation describes you?
Process guides
Tools
GmbH or UG? Capital comparison
Compare both legal forms based on your planned capital. Schematic — not legal or tax advice.
Frequently asked questions
Can you really start a company with €1?
Does founding a company give me a residence permit?
Is a notary mandatory, and what does formation cost?
What is the difference between Freiberufler and Gewerbe?
Liberal professions (freie Berufe — e.g. engineering, medicine, translation, arts; catalogue in §18 EStG) do not count as a trade: no trade registration (Gewerbeanmeldung) and no trade tax, only registration with the tax office (Finanzamt). Commercial activities register with the trade office. In borderline cases the tax office decides the classification.
Source: EStG §18 (Gesetze im Internet) · Valid from 2024-01-01
Is residence for freelancers different from founders?
Yes — residence for freelance work has its own clause (§21(5) AufenthG), separate from the founders' 'economic interest / regional need' test: what counts is a professional practice permit where required (granted or promised) and the financing of the activity. Clarify before applying which clause fits your case.
Source: AufenthG §21 (Gesetze im Internet) · Valid from 2024-01-01
What must I report to the tax office after founding?
Anyone starting self-employed or commercial activity must notify the tax office (§138 AO). In practice this is done via the 'Fragebogen zur steuerlichen Erfassung', usually through ELSTER; the tax number and — if needed — the VAT ID are then issued. With a trade registration the Gewerbeamt normally forwards the data to the Finanzamt; freelancers apply to the Finanzamt directly. As a rule within one month of starting the activity.
Source: AO §138 (Gesetze im Internet) · Valid from 2024-01-01