1

Self-employment

2

Review your business idea

3

Prepare a business plan

4

Financing & public support

5

Business or liberal profession

6

Legal structure

7

Taxes & Accounting

8

Company insurance

9

Social insurance

10

Networks & contacts

Business or liberal profession

Right at the beginning, you need to clarify whether your planned self-employed activity is classified as a business or a liberal profession. The decision has a number of legal and tax-related consequences.
  • What special rules and regulations do you need to comply with?
  • What is the impact on taxes and compulsory memberships?
  • Where do you have to register your self-employment?

Information and advice:

Video: Business or liberal profession

www.startup-in-munich.de

City of Munich startup assistance

www.startup-in-munich.de

Business start-up portal  (BMWi)
Starting a business as a freelancer

www.existenzgruender.de
Liberal professions

Liberal professions

Doctors, lawyers, tax advisers and engineers are all examples of liberal professions. Scientific, artistic, writing, teaching, child education and consulting activities can also be liberal professions. It is important to clarify whether your planned activity genuinely belongs to the liberal professions. Classification can be difficult and depends on the individual case!

Impact

  • You do not have to pay trade tax.
  • A statement of net income is always sufficient regardless of turnover or profit.
  • Membership of professional chambers may be compulsory, e.g. for architects, doctors and tax advisers.
  • Please note: Pension insurance may still be compulsory for you even if you are self-employed in a liberal profession.
  • You may need to register with a professional association (“Berufsgenossenschaft”). Please contact the relevant association directly!

Registration

  • You do not need to register your business
  • Register your self-employment directly with the tax office by completing and submitting the “Fragebogen für die steuerliche Erfassung” (“Tax Assessment Questionnaire”).
  • The tax office will then give you a tax number which you will need to write invoices for your self-employed activity.

Lassen Sie sich beraten:

Go here for advice:
Institute for Liberal Professions (IFB)
Phone: 0911 23 565-28

www.ifb.uni-erlangen.de/en/

Deutsche Rentenversicherung Bund
[German Statutory Pension Insurance Scheme]

www.deutsche-rentenversicherung.de

Professional association info line
Phone: 0800 60 50 40 4

www.dguv.de/en

Munich Tax Office –
Information on taxes for start-up entrepreneurs

www.finanzamt.bayern.de
Businesses

Businesses

In Germany, everyone is essentially free to register a business. But: Some trades or businesses require special permits, monitoring and/or licenses (e.g. skilled crafts).

Impact

  • You have to pay trade tax.
  • You must prepare a net income statement or double-entry bookkeeping (depending on the legal structure and/or the amount of revenue/profit).
  • Membership of the Chamber of Commerce and Industry (IHK) or the Chamber of Skilled Crafts (HWK) is compulsory.
  • Please note: Pension insurance may still be compulsory for you even if you are self-employed with a business.
  • You may need to register with a professional association (“Berufsgenossenschaft”). Please contact the relevant association directly!

Registration

  • Step 1: Use the “Gewerbeanmeldung” form to register your business in person with the Department of Public Order (KVR or the local government office). You must present your ID card. Registration in Munich costs about EUR 50.
  • Step 2: Submit the “Fragebogen für die steuerliche Erfassung” (“Tax Assessment Questionnaire”) to the tax office.
  • The tax office will then give you a tax number which you will need in order to write invoices.

Skilled crafts (“Handwerk”)

There are many crafts that require a license before you can start a business in this field. And you can only obtain a license if you yourself have the required qualifications, or if you employ suitably qualified management. Examples include painters, varnishers, electricians, hairdressers, bakers and confectioners.

A distinction is drawn between:

  • Skilled crafts that require a license (e.g. bakers, confectioners and tilers)
  • Skilled crafts that do not require a license (e.g. photographers and cleaners)
  • Trades similar to skilled crafts (e.g. beauticians, alteration tailors, ice cream makers)

More information

Video: Starting a business – General formalities

www.startup-in-munich.de

Munich Chamber of Skilled Crafts,
Startup Agency
Phone: 089 5119 167

www.hwk-muenchen.de

Deutsche Rentenversicherung Bund
[German Statutory Pension Insurance Scheme]

www.deutsche-rentenversicherung.de

Professional association info line
Phone: 0800 60 50 40 4

www.dguv.de/en

City of Munich, Department of Public Order (KVR)
Phone: 089 233-96030

www.muenchen.de

Fill-in help for registering a business in Munich

www.munich.de/startup

Munich Tax Office –
Information on taxes for start-up entrepreneurs

www.finanzamt.bayern.de
Businesses

Businesses

In Germany, everyone is essentially free to register a business. But: Some trades or businesses require special permits, monitoring and/or licenses (e.g. skilled crafts).

Impact

  • You have to pay trade tax.
  • You must prepare a net income statement or double-entry bookkeeping (depending on the legal structure and/or the amount of revenue/profit).
  • Membership of the Chamber of Commerce and Industry (IHK) or the Chamber of Skilled Crafts (HWK) is compulsory.
  • Please note: Pension insurance may still be compulsory for you even if you are self-employed with a business.
  • You may need to register with a professional association (“Berufsgenossenschaft”). Please contact the relevant association directly!

Registration

  • Step 1: Use the “Gewerbeanmeldung” form to register your business in person with the Department of Public Order (KVR or the local government office). You must present your ID card. Registration in Munich costs about EUR 50.
  • Step 2: Submit the “Fragebogen für die steuerliche Erfassung” (“Tax Assessment Questionnaire”) to the tax office.
  • The tax office will then give you a tax number which you will need in order to write invoices.

Skilled crafts (“Handwerk”)

There are many crafts that require a license before you can start a business in this field. And you can only obtain a license if you yourself have the required qualifications, or if you employ suitably qualified management. Examples include painters, varnishers, electricians, hairdressers, bakers and confectioners.

A distinction is drawn between:

  • Skilled crafts that require a license (e.g. bakers, confectioners and tilers)
  • Skilled crafts that do not require a license (e.g. photographers and cleaners)
  • Trades similar to skilled crafts (e.g. beauticians, alteration tailors, ice cream makers)

More information

Video: Starting a business – General formalities

www.startup-in-munich.de

Munich Chamber of Skilled Crafts,
Startup Agency
Phone: 089 5119 167

www.hwk-muenchen.de

Deutsche Rentenversicherung Bund
[German Statutory Pension Insurance Scheme]

www.deutsche-rentenversicherung.de

Professional association info line
Phone: 0800 60 50 40 4

www.dguv.de/en

City of Munich, Department of Public Order (KVR)
Phone: 089 233-96030

www.muenchen.de

Fill-in help for registering a business in Munich

www.finanzamt.bayern.de