Registering a business: obligation, process and distinction from freelancing

Whoever operates a business, that is, is active self-employed, permanently and with the intention of making a profit, must register it with the trade office. Exempt are freelancers (e.g. doctors, lawyers, artists) and primary production. The registration is uncomplicated but mandatory; a side business must also be registered.

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You must notify the trade office of the start of a business (§ 14 GewO). This also applies to part-time and small businesses. Liberal professions and primary production (e.g. agriculture and forestry) are exempt from business registration.

The registration is simple and mostly costs only a small fee. With it, the tax office is informed; depending on the activity, the IHK/chamber of crafts is added. A timely registration avoids fines and back payments.

What you should do now

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1. Business or liberal profession?
Clarify whether your activity is a business or belongs to the liberal professions, that decides the registration obligation.
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2. Register with the trade office
Register the business with the trade office of your municipality (often possible online).
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3. Note follow-up notifications
The tax office sends a questionnaire for tax registration; depending on the activity, IHK/chamber of crafts follow.
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4. Check permits
Some businesses additionally need a permit (e.g. gastronomy, crafts). Clarify that in advance.

How to spot the scam

You operate a business for a long time without registering it.
You assume a side business is registration-free (it is not).
A necessary permit for the activity is missing.

Frequently asked questions

Do I have to register my business?

Yes, the start of a business must be notified to the trade office (§ 14 GewO), also for a part-time or small activity. Whoever does not register a registration-obligatory business risks a fine. Liberal professions and primary production are exempt.

What is the difference from a freelancer?

Liberal professions (such as doctors, lawyers, tax advisors, artists, certain advisory activities) do not count as a business and need no business registration. The distinction is not always clear-cut; when in doubt, information from the tax office helps.

How does the registration work?

You register the business with the trade office of your municipality, often online, for a small fee. The trade office informs the tax office, which sends you a tax registration form. Depending on the sector, IHK or the chamber of crafts and necessary permits are added.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.