Opening a Retail Store in Munich

Taking the Leap into Self-Employment in the Retail Industry

A suitable location, a well-thought-out business plan, solid financing, and motivated staff are all part of thorough preparation and are crucial to success. Before launching your business, there are also a number of formalities to complete and legal considerations to keep in mind. Below you will find important information and key contacts to help you plan and launch your business idea. If you are planning to distribute your products through an online business or vending machines instead of or in addition to a brick-and-mortar store, the respective startup guides provide further information.

What products will you be selling?
Selecting your product assortment is not just a strategic decision. Depending on the product category, there are various legal requirements that you need to be aware of before leasing a suitable commercial space.

Food products: There are comprehensive regulations governing food safety, hygiene, labeling, and internal quality control, as well as specific requirements for commercial premises where food is processed and stored.

Non-food products: Whether manufacturer, importer, or retailer – anyone who puts products on the German market must ensure that the products meet the European regulations for product safety or else risk liability procedures, sanctions, and loss of reputation. Product safety regulations also affect labeling and information obligations. The General Product Safety Regulation (GPSR) of the European Union leads to numerous new obligations for online retailers. The local IHK Chamber of Industry and Commerce provides free advice and information.

Special regulations exist for a number of products, such as:

The sale of batteries and electrical appliances is subject to legal labeling and take-back requirements. The IHK Chambers of Industry and Commerce provide information and individualized advice on these matters.

The Digital Product Passport is an extension of traditional product labeling. Starting in 2027, the passport will be mandatory for numerous products that consume a lot of energy or are “energy-related” due to their manufacture or use.

Imported Goods: If you source products from non-EU countries, you must navigate legal regulations regarding imports, customs, and taxes.

Regulated and licensed retail: For the sale of certain goods, you must prove your personal reliability to the Business Licensing Office (Gewerbeamt) by submitting a certificate of good conduct (Führungszeugnis) and an extract from the Central Federal Register for Businesses (Auskunft aus dem Gewerbezentralregister). Other types of goods require an explicit license. Specialized retail sectors, such as pharmacies, medical supply stores, opticians, hearing aid specialists, or pet shops require legally mandated permits, master craftsman certificates (Meistertitel), or proof of expertise (Sachkundenachweis). If you also offer craft services like repairs or sell products you manufacture yourself, the regulations of the Crafts Code (Handwerksordnung) often apply. If you handcraft products such as jewelry, pottery, textiles, or items made of wood, leather, or metal, you should contact the Chamber of Skilled Crafts (Handwerkskammer) in advance to determine whether your activity is classified as a skilled craft or as art

Regulated and License-Required Trade: To trade in certain goods, you must prove your personal reliability to the Trade Licensing Office by providing a certificate of good conduct and an extract from the Central Trade Register. For other goods, you need an explicit license. In specialized retail sectors—such as pharmacies, medical supply stores, opticians, hearing aid specialists, or pet stores—licenses required by law, master craftsman certifications, or proof of expertise are necessary. If you also offer skilled trade services—such as repairs—or sell products you have made yourself, the rules of the Crafts and Trades Code often apply. If you produce handmade artisanal products—such as jewelry, pottery, textiles, or goods made of wood, leather, or metal—you should contact the Chamber of Crafts in advance to have your activity classified as a skilled trade or as artistic liberal profession.

General Legal Obligations for All Goods: Regardless of your product range, you should familiarize yourself at an early stage with the additional legal obligations that apply to the retail industry, such as:

Personal and professional requirements
Generally, no specific professional degree is required to open a retail store. However, depending on the product assortment or services provided, special qualifications and permits may be necessary.

The Guide to Self-Employment in Retail by the Bavarian Retail Association (Handelsverband Bayern) provides a checklist to assess your personal requirements. In addition, specialized expertise, industry experience, and business management skills are required.

According to the guide, the most common mistakes made when starting a retail business include insufficient business knowledge, unclear unique selling propositions (USPs), overly optimistic financial planning, undefined target audiences, unrealistic sales forecasts, and a lack of industry expertise.

To launch and operate a brick-and-mortar store, you must comply with regulations across various legal areas.

The mandatory reporting and registration requirements typically include:

Check whether you need to register with other authorities such as social security and statutory insurance providers, whether you need official licenses and permits, and which laws and regulations apply to your daily business operations.

The “Guide to Self-Employment in Retail” by the Bavarian Retail Association (Handelsverband Bayern)

You should also obtain an overview of business insurance to protect yourself if necessary against damage to goods or liability claims from customers. These include, for example, general liability insurance, contents insurance or business interruption insurance. Cyber insurance can provide protection for POS systems and digital infrastructure, while refrigerated goods and spoilage insurance can be important when trading in perishable goods.

  • Our startup guide, Business Insurance Overview, provides an initial overview and information on advisory services.
  • The Guide to Self-Employment in Retail by the Bavarian Retail Association (Handelsverband Bayern) outlines the most common types of commercial insurance and provides further information on their website. HBE members receive individual insurance advice.

Depending on your retail store’s product assortment and the services offered, additional permits or mandatory training may be required. Please see the chapter “What Products Are You Selling?”.

An alternative to starting a new business from scratch is taking over an existing company or opting for a franchise, where you utilize an already proven business concept in exchange for a fee.

Location requirements

Our startup guide, Location and Premises, highlights what you should look for when searching for the right retail space. The Guide to Self-Employment in Retail by the Bavarian Retail Association (Handelsverband Bayern) provides information on additional factors for a risk-reward analysis, such as location, foot traffic, purchasing power, competition, market trends, market potential, and the surrounding area.

The retail space must meet a variety of requirements—not only regarding location, layout, and accessibility for customers and suppliers, but also in terms of building codes and permitted zoning regulations. Consider what your specific needs are for the sales floor, window displays, stockrooms, office space, or production. Do you plan to use the premises for purposes other than retail, such as a café, wine tastings, a food service area serving alcohol, a co-working space, or an event venue for workshops, yoga classes, or live music? If so, it is crucial to verify beforehand whether these additional activities comply with local building regulations or if you need to apply for a change of use permit.

It is also critical to consider requirements regarding parking spaces, fire safety regulations, and specific guidelines for certain product categories, such as food products.

Once the baseline conditions are met, you can start planning your store layout as well as the costs for renovations and equipment. What additional amounts will be required for the security deposit, fixtures fee (Ablöse), and real estate agent fees?

mgb tipp Münchner GründungsbüroImportant: Do not sign the lease contract until you have fully clarified these points and secured your financing. If you are applying for a loan, contact your bank early on and submit the loan application BEFORE entering into any financial commitments, such as signing lease contracts, supplier contracts, or purchasing equipment.

 

Consulting and Information

Concepts and Contracts
  • Shared spaces: Sharing retail space is a strategic approach to tackling space shortages. It serves to reduce ongoing overhead costs or buffer revenue gaps. Model contracts, forms, and checklists are available in the handbook provided by munich business.
  • Pop-up-Stores: Under the German Trade Code (Gewerbeordnung), these temporary shops are generally classified as a traveling trade (Reisegewerbe) and a traveling warehouse (Wanderlager). This applies regardless of whether an established business already exists. If the pop-up store is intended for the longer term, registration as a permanent place of business (Betriebsstätte) is required. You can also find detailed information on this in the munich business handbook.
  • Commercial Lease Contracts: A commercial lease contract differs significantly from a residential lease. The Chamber of Commerce and Industry for Munich and Upper Bavaria (IHK München) provides a comprehensive guide outlining these specific differences and offers a model contract.
  • Guide and Templates: The Guide to Self-Employment in Retail by the Bavarian Retail Association (Handelsverband Bayern) assists you with your location analysis. Additionally, it provides model contracts, forms, and checklists.
Contacts within the Munich City Administration
  • Building law consultation: The Munich Local Building Commission (Lokalbaukommission) offers free consultation on building laws and codes. To attend a consultation appointment, you will need the building plans and a power of attorney from the property owner.
  • Site and space search: The munich business company support team compiles location and retail space proposals and provides advice on site-specific challenges. You can submit your specific requirements using the space search contact form.
  • City-owned retail space: The Department of Municipal Services (Kommunalreferat) is responsible for leasing city-owned retail spaces in the city center.
  • Outdoor merchandise displays: The District Inspection Offices (Bezirksinspektionen) are the competent authority if you wish to set up merchandise displays, planters, seating, or bicycle racks in front of your store.
  • Vacancy management: The Vacancy Management team (Leerstandsmanagement) accepts reports regarding vacant retail spaces and contacts the respective property owners.
Cultural Industries and Markets
Business plan and business concept
A carefully prepared and critically evaluated business plan, featuring a comprehensive narrative and financial section, is an essential foundation for successfully launching your business.

Our business plan template can assist you with this process.

According to the Guide to Self-Employment in Retail by the Bavarian Retail Association (Handelsverband Bayern), the most common mistakes made when starting a retail business include insufficient commercial knowledge, unclear unique selling propositions (USPs), overly optimistic financial planning, undefined target audiences, unrealistic revenue forecasts, and a lack of industry expertise.

Templates, key performance indicators (KPIs), and specialized consulting for your specific sector can be obtained from industry associations, such as:

A vital component of your business plan involves defining your target audience and managing product purchasing. Identify the specific characteristics of your target group and plan the selection of reliable suppliers early on. Negotiate delivery terms and payment deadlines, and calculate your pricing to ensure a sustainable margin. The Guide to Self-Employment in Retail by the Bavarian Retail Association (Handelsverband Bayern) outlines criteria for evaluating target groups and suppliers.

If you plan to utilize additional sales channels, such as selling through your own online shop, online marketplaces, or social media platforms, you must comply with various technical, organizational, and legal requirements. Our Online Business page provides a comprehensive overview. The “Erfolgreich handeln” project and the Mittelstand-Digital Zentrum Handel support the retail sector with practical, complimentary workshops and information.

Are you planning to hire staff for consulting, sales, warehousing, and customer service, or seasonal help for the Christmas shopping season? The IHK and the Bavarian Retail Association provide information on labor law regulations.

Consulting and Information
  • The IHK München und Oberbayern offers information and a complimentary initial consultation regarding marketing strategy and distribution.
  • For more in-depth consulting, you can contact experts at industry associations or specialized business consultants. Contacts for guidance, coaching, and assistance with your business plan can be found on our Business plan page.
Financing and funding

A selection of financing and funding options for starting a business in Munich is available on our Financing and Funding page.

mgb tipp Münchner GründungsbüroImportant notice: Do not sign a lease agreement until you have completely resolved all the aforementioned points regarding location, product range, and permits, and your financing is fully secured. If you are applying for a loan, contact your bank at an early stage and submit the corresponding loan application BEFORE entering into any financial commitments, such as signing lease agreements, supplier contracts, or purchasing equipment.

Retail startups can also utilize the following resources for information, counseling, coaching, workshops, and additional funding programs:
Contacts within the Munich City Administration

Here is an overview of the most important contact partners within the Munich City Administration and municipally owned companies:

Department of Labor and Economic Development – Referat für Arbeit und Wirtschaft

Startup advice, company support, space referral service for the cultural and creative sectors, retail space at traditional markets and festivals

Department of Municipal Services (Kommunalreferat)

Retail spaces in city-owned properties and markets

  • City-owned retail space: The Real Estate Center (Immobilienzentrum) is responsible for leasing municipal retail spaces in the city center as well as handling other offers. Current space availability listings include the respective contact details. Answers to many questions can be found in the Real Estate Center’s FAQs. You can reach the center by email at kommunalreferat@muenchen.de or by phone at +49 89 233-725764.
  • Retail spaces at markets: The Munich Market Halls (Markthallen München) offer sales stands, storage spaces, offices, retail stores, parking spaces, and restaurants at the Munich food markets as well as at the weekly and farmers’ markets.

Kreisverwaltungsreferat (KVR) – Bezirksinspektionen (District Inspection Offices)

Commercial affairs, food monitoring, restaurant law, and special permits for the use of public space

Kreisverwaltungsreferat (KVR) – Business Licence Office (Gewerbeamt)

Business registration and notification of late-night shopping events on working days.

Kreisverwaltungsreferat (KVR) – Fire Department (Branddirektion)

Preventive fire protection, fire safety inspections, and regular official fire reviews.

Health Department (Gesundheitsreferat)

Initial instruction for the commercial handling of food products.

Department of Urban Planning and Building Regulation – Local Building Commission (Lokalbaukommission – LBK)

Building permits and change of commercial use.

Munich Waste Management Corporation (Abfallwirtschaftsbetrieb München – AWM)

Residual waste disposal, food waste disposal, waste separation, and the Munich reusable packaging mandate.

Munich City Drainage (Münchner Stadtentwässerung – MSE)

Drinking water supply, wastewater disposal, and grease traps.

Do you have any questions?

Please contact us to clarify individual inquiries!
Have you thought of everything? Complete our 10-Point Checklist!