How do I register as a self-employed person?

How and where you register your self-employment depends on your choice of legal structure and whether your activity is classified by the authorities as a liberal profession or a business. Freelancer is not a legal form and must not be equated with “Freiberufler” work.

1. Clarify your status as a “liberal profession or business” and select your legal form

Business or liberal profession (Gewerbe or Freier Beruf)

Find out which category your planned self-employed activity falls into on the page Business or liberal profession. Classification can be difficult. Several activities can only be allocated to the liberal professions following a case-by-case examination. These FAQs provide guidance:

Have you clarified your status as business or liberal profession? Then visit the page Choice of legal structure to find out about your options. Good to know: Small business, Kleingewerbe, Kleinunternehmer and Freelancer are not legal forms.

Unincorporated firms for liberal professions and businesses

Unincorporated firm are entities such as:

How to register your self-employment in Munich as a sole proprietor

a) as a liberal profession (Freier Beruf)

b) as a business (Gewerbe)

  • Step 1: Register your business online with the municipal Gewerbeamt
  • Step 2: complete and submit via the ELSTER portal the tax assessment questionnaire – in German: Fragebogen zur steuerlichen Erfassung – to the tax office. The tax office will then issue a tax number, which you will need in order to write invoices. Since January 1st, 2021 you are obliged to submit the tax assessment questionnaire without prior notice from the tax office.

How to register your self-employment in Munich as a GbR civil-law partnership involving two or more people

a) as a liberal profession (Freier Beruf)

b) as a business (Gewerbe)

  • Step 1: each partner of the GbR registers a business online with the municipal Gewerbeamt. When registering, please provide the names of the other partners in the GbR.
  • Step 2: complete and submit one copy of the form “tax assessment questionnaire for founding a civil-law partnership” – in German: Fragebogen zur steuerlichen Erfassung Gründung einer Personengesellschaft/-gemeinschaft via the ELSTER portal to the tax office. The tax office will then issue a tax number, which the GbR will need in order to write invoices. The GbR will operate under its own tax number. Since January 1st, 2021 you are obliged to submit the tax assessment questionnaire without prior notice from the tax office.
Incorporated firms for businesses

Incorporated firms are entities such as:

  • Limited liability company (GmbH) (1 or more persons)
  • Provisional company with limited liability (Unternehmergesellschaft haftungsbeschränkt, UG) (1 or more persons)

Registering an incorporated firm involves, for example, stating the planned company name and purpose (Unternehmensgegenstand), notarial certification of the formation record (Musterprotokoll) and partnership agreement, the paying in of capital stock and entry at the commercial register by the notary. Only then will you register the company with the Finanzamt and Gewerbeamt. Plan sufficient time for this entire process and calculate the costs, which can vary significantly, depending on whether you set up the company using the simplified “Musterprotokoll” procedure or individual contracts.

2. Register with the municipal business licence office (Gewerbeamt) and Finanzamt (tax office)

Do you know whether you can start as a liberal profession or a business? Have you decided on a legal form? Here is how to register your self-employed activity.

Registering with the business licence office (Gewerbeamt)

How do I register my business (Gewerbe) in Munich?

In Munich, you will register a business online.

For the online registration process you will need to create a personal BayernID first – using the option “Username and Password”. You can find out more about BayernID in our FAQ.

How online business registration works:

  1. Create a BayernID
  2. Go to Munich online business registration
  3. Log in with your BayernID and agree to the transfer of data
  4. Fill out the online business registration form and upload the required documents
  5. Pay online; various payment methods are available
  6. Receive automatic confirmation of receipt and summary
  7. Processing by the Munich business licence office (Gewerbeamt)
  8. Receive your “Gewerbeschein” from the Munich business licence office (Gewerbeamt) by postal mail. This document merely confirms the registration of the business. It does not certify the authorization to operate the business and does not replace any required permits.

Which documents do I need to register my business?

In Germany, everyone is essentially free to register a business. But there are numerous exceptions where you need a permit, supervision or a licence before you can start. For examples, please see the chapter “business” on our page Business or liberal profession.

Moreover, before registering a business, please check if you have a valid residence permit that allows you to go self-employed.

The Trade Office lists the documents required for a business registration, such as:

  • if you are not a national of an EU country: valid residence permit including a permit entitling you to go self-employed
  • in the case of authorization: a written power of attorney and identification of the principal and the authorized representative
  • For minors: for part-time work, the consent of the legal guardian is sufficient; for full-time work, the approval of the guardianship court (Vormundschaftsgericht) is required.
  • entities listed in the registers of companies, cooperatives and partnerships or of associations (Handelsregister, Genossenschaftsregister, Vereinsregister) are required to submit a copy of an up-to-date and complete excerpt from their register
  • for activities requiring a permit: copy of the permit
  • skilled craft trades requiring a license (zulassungspflichtige Gewerbe im Handwerk): submit a copy of the license (Handwerkskarte)

Do you have any questions about the required documents?
Then please contact the Munich Trade Licensing Office service hotline at 089 233-96030.

How much does it cost to register a business with the City of Munich?

  • Registration in Munich costs about EUR 50 to 60 depending on the legal structure of your business.
  • Additional fees apply when permits and licenses are required.

FAQs

  • When do I register my business? You are obliged to register your self-employment either before you start operating it or at the same time as starting it.
  • Where do I register my business? The Business Licensing Office in the city or municipality where you will have your future place of business is responsible for registering your business. In the City of Munich, this is the Business Licensing Office in the KVR District Administration Office.
Registering with the Tax Office

Checklist: Registering with the Tax Office

Registering at the tax office is done digitally. All forms relating to tax registration are free or charge and available via ELSTER, the online portal used by the government’s financial administrative authorities.

step 1 Register for an ELSTER user account (duration: approx. 1 to 2 weeks)

  • Registering for a user account(“Benutzerkonto”) at www.elster.de is your first step to applying for a tax number. While the username and password authentication method is widely used, the tax office has implemented a different method for secure authentication. ELSTER user accounts can be accessed with a digital certificate file, the so-called Zertifikatsdatei, and a password or by using ElsterSecure App. Most users are advised to select the Zertifikatsdatei. Registration for a user account needs to be done once only, it is free, and requires no software installation. After entering your personal data and your tax identification number (“steuerliche Identifikationsnummer”) you will receive an activation link by email and an activation code in a letter by postal mail. It is only when you have received the letter that you can complete the registration process and download the Zertifikatsdatei. You can now log in to your account.

step 2 Select the designated “Tax Assessment Questionnaire”, complete and submit via the ELSTER portal

  • Via your ELSTER user account you can go to the “Formulare & Leistungen > Alle Formulare” (“Forms & services > All forms”) section, fill out the “Fragebogen zur steuerlichen Erfassung” (“Tax Assessment Questionnaire”), and submit the completed form online to the tax office via the ELSTER portal. You may also use the forms provided by a commercial accounting software that are able to integrate with ELSTER. Please note, that in any case you are required to register once with ELSTER.
  • Please read and answer each question carefully. Be aware that your answers can have far-reaching implications. You will also have to decide if you wish to make us of the “small business owner regulation” (“Kleinunternehmerregelung”) in terms of charging VAT. Do you need help? Contact a tax advisor for professional advice.

step 3 Receive your tax number for your self-employment (duration: approx. 4 to 8 weeks)

  • After the tax office has received and reviewed your completed questionnaire and the necessary documents, it will issue a tax number. If you charge VAT, you can now make a value-added tax assessment. You need the tax number in order to write invoices. Learn more in our post Taxes & Accounting“.

English language information:

German language information, please use a translation tool of your choice:

FAQs: Registering with the tax office

  • When do I have to register?
    You have to inform the tax office no later than one month after starting your self-employment. Since January 1st, 2021 you are obliged to submit the tax assessment questionnaire without prior notice from the tax office.
  • Where do I register?
    The tax office responsible for you is determined by where you generate your income. In Munich turn to the Munich Tax Office (Finanzamt München).
  • How do I register?
    By completing and submitting the online “Tax Assessment Questionnaire” via the ELSTER Portal.
  • What is ELSTER?
    ELSTER is short for “ELektronische STeuerERklärung”. It an online portal used by the government’s financial administrative authorities.
  • Which “Finanzamtsnummer” (Tax Office Number) do I enter in the questionnaire?
    The Finanzamtsnummer depends on the first letter of your family name: for A to E use the number 144, for F to I use the number 147, for D to M use the number 145, for N to S use the number 146, for Sch to Z use the number 147.
  • Who can I turn to when I …
    … have questions on completing tax assessment questionnaire: tax advisors
    … am experiencing technical difficulties with ELSTER: ELSTER-Hotline at 0800 523 5055
    … have general tax related questions: service center of the Munich tax office
  • Who is my case manager at the Munich tax office
    Depending on the legal form of your business, please turn to the team for sole proprietors – Einzelunternehmen, partnerships such as GbR – Personengesellschaften, incorporated forms such as GmbH und UG (haftungsbeschränkt), non profit associations – Vereine and other legal forms – weitere Rechtsformen.
  • I do not have my tax identification number (“steuerliche Identifikationsnummer”), yet. Can I still set up a user account and submit the Tax Assessment Questionnaire?
    The tax identification number ( IdNo) is a     domestic classification criterion. One IdNo will be assigned to every person who is registered with a primary place of residence or sole residence in a civil registry in Germany. You can usually find your IdNo in the following documents: in your income tax assessment, on your employment tax statement or in the informational letter from the federal central tax office. If you misplaced your IdNo you may request it from the Federal Central Tax Office. If you have never received a IdNo, please turn to your local tax office for help. Meanwhile you may set up an ELSTER user account and submit your tax assessment questionnaire using an email address for verification.
  • What is the difference between “Steuer-ID”, “Steuernummer” and “Umsatzsteuer-ID”?
    Check our FAQ
  • Is there a difference between the terms “Freiberufler“, “freelancer” and “self-employed”?
    Yes! Please see FAQ Freelancing in Munich: Freiberufler or Gewerbe?
  • I am starting self-employment in a liberal profession. Does the tax office require any documents to proof my qualifications?
    If you decide to start self-employed work as a member of the liberal professions (Freie Berufe) , the tax office may well want to see proof of relevant qualifications such as completed degree course or comparable vocational qualification. To speed up the process of having your tax registration form checked, you can submit such documents when registering. It is not always easy to determine which professions are classified as Freie Berufe (liberal professions) and thus qualify for “Freiberufler-Status”. The tax office has the final say on whether your work is classified, from a taxation perspective, as a liberal profession or a trade (Gewerbe). Good to know: Gewerbe ist not only the sale of products but also includes services as well as craft activities. Gewerbe is defined as any planned, permanent self-employed activity undertaken with the intention of making a profit, with the exception of agriculture, forestry and the liberal professions.
  • It often happens that people who see themselves as liberal professions, successfully register with the tax office without any questions arising. These people then frequently and incorrectly assume that they are thus automatically recognized as a liberal profession. If, despite doubts, you register as a liberal profession, no harm will be done as long as you are not subsequently classified as a tradesperson following an audit. It can be very expensive if you are later classified as a tradesperson and have to pay trade tax retrospectively. In some cases it might even occur that the tax office accepts liberal profession status while the trades’ office (Gewerbeamt) demands that you register as a tradesperson.
  • For example, the trades’ authorities recognize teaching as a liberal profession’s activity only if you can prove you have a degree from a university or university of applied sciences. Please see our special information for coaching, teaching and consulting activities.

Further Steps

Please check, if you are obliged to register with other institutions and authorities such as the social insurance agencies, if you require any official licenses or permits and which rules and regulations might be important when running your business. All domestic companies in Germany, with the exception of the skilled crafts, the liberal professions and farmers are members of the local Chamber of Commerce and Industry – Industrie- und Handelskammer (IHK). If you wish to go into business with a skilled craft you will become a member of the local Chamber of Skilled Crafts (Handwerkskammer (HWK). Businesses automatically become a member as soon they have been registered with the Trade Office. A membership fee applies.