How do you register your self-employment?

Unincorporated firm are entities such as:

• Sole proprietorship (1 person)
• Civil-law partnership (GbR) for 2 or more people

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

As a member of the liberal professions [Freie Berufe]

• directly at the tax office by completing and submitting the  “tax assessment questionnaire” [Fragebogen zur steuerlichen Erfassung]

As a business [Gewerbe] owner

• Step 1: complete the business registration form [Gewerbeanmeldung”] (PDF, 144 KB) and submit it to the Trade Office at the Department of Public Order [Kreisverwaltungsreferat – KVR]. Use our English language fill-in help to guide you through the business registration form.
• Step 2: complete and submit the tax assessment questionnaire” [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 assessement questionnaire without prior notice from the tax office.

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

As a member of the liberal professions [Freie Berufe]

• directly at the tax office by completing and submitting one copy of the form  “tax assessment questionnaire” [Fragebogen zur steuerlichen Erfassung]

As a business [Gewerbe] owner

• Step 1: each partner of the GbR needs to complete the business registration form [Gewerbeanmeldung”] (PDF, 144 KB) and submit it to the Trade Office at the Department of Public Order [Kreisverwaltungsreferat – KVR]. Use our English language fill-in help to guide you through the business registration form.
• Step 2: complete and submit one copy of the form  “tax assessment questionnaire for founding a civil-law partnership” [Fragebogen zur steuerlichen Erfassung Gründung einer Personengesellschaft/-gemeinschaft] 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 assessement questionnaire without prior notice from the tax office.

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, entry at the commercial register by the notary, and only then registration of the business and registration at the tax office.

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.

Local municipalities require a registration of commercial activities at the trade office of the respective municipal administration. Is Munich going to be the seat or place of management of your future business? In this case please turn to the Trade Office at the Department of Public Order [Kreisverwaltungsreferat – KVR]. Complete and submit the business registration form [Gewerbeanmeldung”] (PDF, 144 KB). Use our English language fill-in help to guide you through the business registration form.

In Germany, everyone is essentially free to register a business.

But: Some trades or businesses require special permits or monitoring [erlaubnispflichtige und überwachungsbedürftige Gewerbe]. Many skilled craft trades [zulassungspflichtige Gewerbe im Handwerk] require a permit or license or from the local  Chamber of Skilled Crafts [Handwerkskammer – HWK]. An exception applies to those activities that either qualify as “zulassungsfreie und handwerksähnliche Tätigkeiten” or are not regarded as part of the skilled craft trade at all.

Moreover, 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:

• Completed business registration form [Gewerbeanmeldung]
• a copy of your identity document such as an identity card [Personalausweis] or passport [Reisepass]
• if you are not a national of an EU country: valid residence permit including a permit entitling them to go self-employed
• Supplement for authorised representatives: letter of attorney, competent proof of identification of the principal and the authorized representative
• Supplement for minors: agreement of the parent or legal guardian (for sideline businesses) or permission of the guardianship court [Vormundschaftsgericht] (for main businesses)
• entities listed in the registers of companies, cooperatives and partnerships or of associations [Handelsgister, Genossenschaftsregister, Vereinsregister] are required to submit a copy of an up-to-date and complete excerpt from their register
• trades requiring a special permit [erlaubnispflichtige und überwachungsbedürftige Gewerbe]: submit a copy of the permit
• skilled craft trades requiring a license [zulassungspflichtige Gewerbe im Handwerk]: submit a copy of the license [Handwerkskarte]

After submitting your business registration form and documents, the Trade Office will issue an acknowledgement of receipt [Gewerbeschein]. Please note that the “Gewerbeschein” does not replace any legally required permits or licenses.

Forms 

Business registration form [Gewerbeanmeldung] (PDF, 145 KB), available in German language only

Fill-in help with explanations in English language

Learn more about business registration from the Munich Trade Office:

www.muenchen.de

Telefon: 089 233-96030

Fees

• 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.

When do you register your business?

• You are obliged to register your self-emplyoment either before you start operating it or at the same time as starting it.

How do you register your business?

• Register in person at the Trade Office after setting up an appointment:
  Kreisverwaltungsreferat (KVR), Hauptabteilung III, Gewerbeangelegenheiten und Verbraucherschutz, Gewerbemeldungen
  Implerstraße 11, 81371 München
  Book an appointment online
• Register by post mail or email:
  Kreisverwaltungsreferat (KVR), Hauptabteilung III, Gewerbeangelegenheiten und Verbraucherschutz, Gewerbemeldungen
  Ruppertstr. 19, 80466 München
  email: gewerbemeldung.kvr@muenchen.de

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 assessement questionnaire without prior notice from the tax office.

The tax office responsible for you is determined by where you generate your income. In Munich turn to the Munich Tax Office [Finanzamt München].

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. You may also use the forms provided by a commercial accounting software that is able to integrate with ELSTER. Please note, that in any case you are required to register once  with ELSTER. The certificate file required for electronic authentication is created free of charge during registration. A domestic classification criterion (tax number) is essential for registration on the ELSTER portal.

• Step 1: Start by registering at www.elster.de – it only needs to be done once, is free, and requires no software installation. If you require assistance, you may set up an appointment with the Munich Tax Office to guide you through the process.
• Step 2: Your login details will be sent to you, for security reasons, in two stages (by email and by post). Complete your registration using your login details.

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 using ELSTER. Only after the tax office has received the completed questionnaire and the necessary documents can the tax number be issued and a VAT value-added tax assessment be made. You need the tax number in order to write invoices. Learn more in our post “Taxes & Accounting“.

English language information:

Munich Tax Office: Important information on tax registration when starting an entrepreneurial activity (PDF, 150 KB)

Munich Tax Office: Glossary of Tax Terms (PDF, 855 KB)

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

Anleitung zur Anmeldung beim Finanzamt (PDF, MB)

Munich Tax Office: Tax Assessment Questionnaire [Fragebögen für die steuerliche Erfassung]

Munich Tax Office:  Contact persons for founders [Ansprechpartner für Gründer*innen]

Munich Tax Office: Tax information for founders [steuerliche Infos für Gründer*innen]

“Mein ELSTER portal”: instructions for the Tax Assessment Questionaire [Anleitung zum Fragebogen für die steuerlichen Erfassung]

Federal business startup portal: tax offices [Finanzamt]

FAQ: What is the difference between “Steuer-ID”, “Steuernummer” and “Umsatzsteuer-ID”?

• The “Steuer-ID” (tax identification number) consists of 11 digits, is specific to an individual, retains life-long validity, and is issued by the Federal Central Tax Office.
• The “Steuernummer” (tax number) consists of 10 or 11 digits, usually divided by two forward slashes. It is issued by your local tax office when registering for taxation, for example if you are an employee or starting self-employment work . It is possible to have multiple tax numbers, for example if you are employed but also have a self-employed sideline job.
• The “Umsatzsteuer-ID” (VAT identification number, abbreviated as USt-IdNr.) starts with the EU country abbreviation, DE for Germany, followed by up to twelve digits. Entrepreneurs are given this number in addition to the above-mentioned tax number for their work as a tradesperson or freelancer. It is issued by the Federal Central Tax Office. Entrepreneurs can apply for the VAT identification number via the “Fragebogen zur steuerlichen Erfassung” form (“Tax Assessment Questionnaire”). It is important for business transactions between companies in different EU countries.

Tip

Plan up to two weeks to complete your registration using the ELSTER portal. It can take a few weeks from submitting your “Fragebogen zur steuerlichen Erfassung” via Elster to receiving your tax number.  You might consider to start the ELSTER registration process before taking any other important starts to set up your business. If you have any technical difficulties, contact the ELSTER hotline here. Contact the tax office service desk here for general information over the phone. Contact a tax consultant of your choice for advice relating to taxes.

Tip

If you decide to start self-employed work as a member of the liberal professions , 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 freelance status. The tax office has the final say on whether your work is classified, from a taxation perspective, as freelance or trade. It often happens that people who see themselves as freelancers successfully register with the tax office without any questions arising. These people then frequently and incorrectly assume that they are now recognized as freelancers. If, despite doubts, you register as freelance (in German taxation language selbständig), 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 freelance status while the trades’ office (Gewerbeamt) demands that you register as a tradesperson. For example, the trades’ authorities recognize teaching as a freelance 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.