business plan ideas for germany

The 66 Best Businesses To Start In Germany [2024]

Interested in starting a business in Germany in 2024?

As one of the largest economies in Europe, Germany has a very stable socioeconomic condition, and a highly developed political and economic framework, making it one of the most stable countries to start a business.

We put together 66 of the best businesses you can start in Germany today.

In this list of ideas, you can find:

• Home-based businesses to start in Germany
• Profitable online business ideas
• Unique business opportunities for Germany
• Low investment business ideas (under $5k to start)
• Easy businesses you can start in Germany today

For each business idea, we’ll show you real-world examples, revenue expectations for each idea, + a step-by-step on how to start your small business in Germany.

Here's the full list:

1. Start an affiliate marketing business

Are you looking for a side hustle to pay you a passive income? Affiliate marketing is one of those side hustles that will pay you well over the long term. It is a way to earn money online by promoting other companies' products and services. You will be paid a commission for each sale you make as an affiliate marketer.

To get started, learn how to find the right product and brand to partner with. For example, you may prefer becoming an affiliate marketer for an eCommerce store, partnering with a manufacturer, and marketing their products for a commission.

How much you can make: $500 — $773,000/month

How much does it cost to start: $500 (?)

How long does it take to build: 55 days (?)

German finance blog founder Sascha shares how he turned his website into a monthly 2,000 USD income with minimal social media and no ads, by creating high-quality content that solves real-world problems for readers in areas like loans, banking accounts and car leasing, and leveraging affiliate marketing.

2. Start a blog

In recent years, blogging has become a highly sought-after & lucrative Business. This location-independent business is a creative outlet to reach a broader audience and even work at any time. According to Optinmonster’s list of blogging statistics and facts:

• Blogs have been rated as the 5th most trustworthy source of gathering online information.
• 77% of internet users read blogs.
• Each month, approximately 409 million people view more than 20 billion pages.

Originally blogging started as an online journal, but today it is a highly profitable career option. Many people are choosing blogging as their full-time career and are earning their bread and butter from this profession.

If you want to start blogging as a side hustle or as a full-time profession, choose a niche you will enjoy writing about and have a content strategy ready. Then, create a mailing list, and decide on a good blog posting routine to keep your audience engaged.

How much you can make: $200 — $160,000/month

How long does it take to build: 37 days (?)

Time commitment per week: Min. 5 hours/week

Learn how one couple created a successful personal finance blog, The Savvy Couple, that now makes over $20,000 per month and has sold thousands of digital workbooks and courses, by focusing on purposeful content and optimizing their ROI with efficient time management.

3. Start a food startup

Starting a food business can involve opening your own restaurant, bakery, food truck, cake shop, or even starting a business or blog online.

Other kinds of food businesses include manufacturers, wholesalers, and retailers. Food businesses prepare a wide range of foods such as snacks, sweets, and meals to sell directly to consumers and also include cafeterias at workplaces and similar facilities.

If you have a passion for food, starting a food business can be an extremely fun, challenging, and rewarding business venture.

How much you can make: $2,000 — $61,650,000/month

How long does it take to build: 150 days (?)

Janori, an online store founded by Raphael and Johanna Spannocchi, sells local, organic food and offers monthly food boxes with 80+ products from 14 vendors, with its best-seller being the Christmas box, and aims to create a circle of support for suppliers by focusing on the people and creating compelling content.

4. Start a graphic design app

A graphic design application is a SaaS application that allows users create online graphics. Examples of graphic design applications include Snappa , adobe Photoshop , and GIMP .

Modern businesses need digital branding, holograms, and poster designs, to maximize the customer reach abilities. Therefore, graphic designers are becoming the most in-demand professionals.

The high demand is a good basis for choosing graphic design applications as one of the best app business ideas in 2022. Before you kick start the graphics design app business idea, here are technical skills you may consider:

• Design principles
• Idea generation
• Branding skills
• Print designing
• UX and UI Design

While coding skills and cross-platform development skills are important to start developing applications, you can hire developers online.

How much you can make: $100 — $83,500/month

How long does it take to build: 130 days (?)

This case study is about Janina, the founder of SP-Studio, a popular website with over 60,000 visitors per day that allows anyone to create unique cartoon characters for free without drawing skills, and how she built the website without focusing on generating revenue for many years.

5. Start an art business

Starting an art business can be a great idea if you have a passion for art.

You’ll be able to work on your schedule, set your prices, and do something you love—while supporting yourself or even making money!

There are so many different avenues available to you as an artist-entrepreneur right now—from selling your work online (on sites like Etsy), through galleries or museums, or even at craft fairs and flea markets.

How much you can make: $876 — $415,000/month

How much does it cost to start: $2,000 (?)

How long does it take to build: 60 days (?)

Hoagard is a profitable metal wall decor brand with an average annual turnover of 4.5-5.5 million Euros, which started out as a new hobby and transformed into a successful e-commerce business with 85% of sales coming from the brand's own website.

6. Build an iPhone app

The iPhone is the most popular mobile device in the world. It has changed how we interact with information, entertainment, and communication.

The iPhone has also changed the way we interact with each other. Since its release in 2007, it has become a staple in most people’s lives. It is more than just a phone; it is a tool for staying connected to friends and family and creating new connections.

The iPhone app market is an ever-changing landscape of innovation: it’s not just about making something that works well; it’s about creating something that stands out from the crowd.

It would help if you had something that appeals to your audience to succeed in this market. This can be as simple as ensuring your app has a catchy name or as complex as developing an entire brand identity around your app’s functionality.

How much you can make: $150 — $2,000,000/month

How much does it cost to start: $6,500 (?)

How long does it take to build: 180 days (?)

Gikken is a small, profitable European company founded by Alex that makes browser extensions and apps used by 800,000 people every month, with their flagship product, Mate Translate, generating around $18,000 a month, but monetizing their user base better is their top priority for the next year.

7. Start a product development services business

How much you can make: $60,000 — $200,000/month

VIPERdev is an accelerator program that helps founders turn their digital business ideas into products and bring them to market within 8-12 weeks, releasing an average of 2-5 products per month.

8. Start a language translation service

Language translation services bridge the linguistic barriers, helping businesses reach a wider audience outside of a single language. A language translation job is an opportunity to cover a wide range of topics and meet people from different cultures.

To become a language translator in Germany, master a second language and earn some experience so you become fluent in the second language.

How much you can make: $40,000 — $550,000/month

How long does it take to build: 70 days (?)

DEMAN Translations grew from 6 employees and 1.5 million euros in turnover in 2015 to 17 team members and 3.5 million euros in sales in 2020 after acquiring 12 other translation agencies, with a goal to reach 6 million euros this year and 10 million euros in 2022.

9. Start a saas product developer business

SaaS product is online software that uses a license to access. With cloud computing omnipresent, starting a SaaS company is a low barrier to entry idea with exponential growth potential.

Modern users recognize the SaaS cost-saving benefits and the ability to offer project collaboration. Besides, there are multiple technologies you can use to build SaaS platforms.

To build a successful SaaS product, you need database management skills, programming language, cloud computing, design & development skills.

If you decide to build a SaaS solution, start by conducting market research and competition analysis.

Before starting the development, you must choose a good app monetization model and select an appropriate technology stack.

How much you can make: $40 — $18,933,333/month

How long does it take to build: 114 days (?)

FeedLetter.co, a simple feedback system for newsletters that started as a personal app, now has 14 customers and relies on Twitter and word-of-mouth for acquiring new users, with founder Jens Boje emphasizing the importance of focusing on publishing and growing your product instead of waiting to perfect it.

10. Start a hair salon

Hair salons offer a wide range of beauty services including hair-cutting, waxing, nail treatment, massages, and complementary care such as aromatherapy.

With the increased demand for high fashion beauty services, starting a hair salon could be a profitable venture.

To start a hair salon in Germany, you need a strong business plan and find a niche that attracts a local client base. To succeed, hire knowledgeable and experienced employees, and encourage them to maintain a good customer service culture,

How much you can make: $550,000/month

How long does it take to build: 90 days (?)

This case study follows the founder of Urban Betty, who started her salon business with only one contractor, and now has two locations with over 50 employees, growing from 1.5 million to 3.4 million in revenue from 2014-2018, and investing around 2% of its gross income every year in Yelp, Google, and Facebook Ads.

11. Start a film production company

A film production company is responsible for producing video content for social media, corporate promotions, television programs, commercials,s or other media-related fields. Ideally, the responsibilities of a video production company include scripting, location scouting, and also logistics to ensure a successful film.

Starting a film production company can be a daunting task. However, you can set up your business for success with proper guidance. Here are important steps for creating a video production company:

• Determine the company niche
• Choose a suitable company name
• Draft a solid business plan
• Hire an advocate to lead all legal matters of starting a company
• Fund your business
• Acquire video production equipment and skills
• Create a website and market your film production company

If you are starting a video production company from scratch, consider creating some proof-of-concept projects so you can market the business. Alternatively, you may buy a franchise or an existing business.

How much you can make: $10,000 — $1,500,000/month

How much does it cost to start: $1,500 (?)

How long does it take to build: 165 days (?)

Lemonlight CEO, Hope Horner, co-founded an on-demand video production company that has produced over 7,000 videos for more than 3,000 brands, generating over $6 million in sales and growing to a 45-person team, all without taking any outside capital and being recognized in Inc 5000 and Entrepreneur 360 for three years in a row.

12. Start a veterinary clinic

Another thriving and profitable business is to open a veterinary clinic. This one of the most suitable business ideas for veterinarians to start.

If interested, make sure that you locate one near an area with lots of dog owners and animal farms. These people are your target market, and it's wise to take your business there. You’ll also need to learn how to market yourself so that you can reach out to those people who might need your services.

The average veterinarian salary in the United States is $100,000 annually or $51.28 per hour . Beginning salaries start at $70,783 annually, while most experienced workers earn up to $144,023 annually.

How much you can make: $200,000/month

Discover how Dr. Ellie Scott grew Stringtown Animal Hospital from a staff of four to a team of 23, with five veterinarians, and now has $200K in monthly revenue, by focusing on individual pet risks and the needs of the pet family.

13. Start a dog walking business

Are you a dog lover? If so, you can turn your passion for animals into a profitable side hustle that allows you to earn extra income for your mortgage, a vacation, or paying off student loans.

As a dog walker, sitter, or boarder, you can earn an average annual income of between $10,000 and $30,000 by offering your services to dog owners in need of a caregiver for their furry friends.

To get started, register on a credible dog-walking app and create a compelling profile that showcases your experience, skills, and love for dogs.

With your dedication and expertise, you can help dog owners ensure their pets receive the care and attention they need while building a thriving business that fulfills your passion for animals.

How much you can make: $15,000 — $54,000/month

Time commitment per week: Min. 2 hours/week

Furry Fellas Pet Service LLC is a successful pet sitting and dog walking business that brings in over half a million dollars in sales per year, boasts 3,500-4,000 social media followers, employs 42 individuals and has been voted in the top 3 pet sitting/dog walking companies in the RI/MA area for eight years in a row.

14. Start a pet blog

A pet blog business is all about creating and managing a website that shares information, tips, and stories about pets. This can include articles on pet care, training, product reviews, and heartwarming pet stories.

With the increasing number of pet owners seeking reliable information and a sense of community, starting a pet blog business is a great opportunity to connect with a passionate audience and potentially earn income through advertising, sponsored content, and affiliate marketing.

The love and enthusiasm people have for their pets make this niche both rewarding and financially promising.

How much you can make: $400 — $4,000/month

How long does it take to build: 272 days (?)

Dog with Blog, a content-driven pet adoption network in India led by founder Abhishek Joshi, has successfully driven 900+ dog adoptions using social media and content marketing, and has an active community of 116k fans across its social handles.

15. Start an ecommerce platform

Over the past decade, eCommerce has become an indispensable part of the global retail framework. According to statistics, over 2 billion people prefer shopping online.

While brick-and-mortar stores are still making more sales compared to online sales, the adoption of eCommerce is still rising, mainly because of the increased speed and convenience of online shopping.

Therefore, starting an eCommerce platform could set you on the right path to building a futuristic business.

How much you can make: $100 — $83,333,333/month

How long does it take to build: 110 days (?)

StoreYa co-founders Eyal Reich and Yariv Dror, along with CTO Pasha Zaft, created a suite of marketing and advertising apps that include Traffic Booster, which has generated an average of $700,000 MRR and helped the business win a 2018 Google Acquisition Performance award, as well as becoming a PayPal exclusive advertising partner.

16. Start a travel company

Travel companies sell transportation, lodging, plan trips, and admission to entertainment activities to individuals and groups.

If you love traveling, you can start a company that organizes trips for different people. Choose a niche and ensure travel packages that suit them best.

How much you can make: $10,000 — $114,200,000/month

Under30Experiences is a travel company for people aged 21-35 that runs small group trips around the world, with over 800 five-star reviews on Facebook, Google, and Yelp combined, and nearly hitting $5M in revenue before the COVID-19 pandemic.

17. Start a consulting business

Consulting businesses are booming, more so than ever before, and seeing year-over-year growth. With an accumulated value of about $250B , the global consulting industry is one of the biggest markets within the professional services sector.

If you want to start your own consulting business with valuable insights from industry experts, reading about their entrepreneurial journey will help you decide how you should go about it.

How much you can make: $100 — $2,500,000/month

How much does it cost to start: $1,000 (?)

Cybersecurity consulting firm Eden Data, launched in March 2020, scaled to four team members and generated over $45k MRR without large startup costs through their unique Virtual CISO offering, which outsources cybersecurity and compliance needs for a flat monthly price, rather than charging by the hour or for long-term commitments.

18. Start an event planning business

Event planners handle different tasks related to making the business a success. Some of the event planner’s responsibilities include:

• Conducting research
• Creating the event design
• Finding an ideal site
• Arranging for food, décor, and entertainment
• Planning logistics to and from the event
• Sending invitations
• Supervising at the site etc

To start this business on a budget, begin by honing your organizational and communication skills.

Next, create a detailed business plan outlining your services, target market, and pricing structure.

Utilize free or low-cost online tools for marketing, and consider starting small by offering services for smaller events before expanding your business as you gain experience and resources.

How much you can make: $35,000 — $500,000/month

Akshay Patel's event rental and decor business, Simply Decor, Tents, and Events, saw an average ticket price of $2,000, as their advertising budget decreased from $20k to $5k, leading to 40% of their clients coming through social media advertising, 30% from expos, and 30% online in google, yahoo, and other platforms.

19. Start a career coaching business

A career coaching business involves providing personalized guidance, support, and strategy services to help clients navigate professional transitions and growth opportunities.

As a career coach, you design custom sessions to assist with resume building, interview prep, and workplace advancement goals tailored to each client’s aspirations.

With flexibility for in-person or virtual meetings, building a client base lets you empower breakthroughs through specialized advice and accountability.

Launching a coaching practice can be a great opportunity for those with speaking talents and human resources expertise to monetize their natural motivational abilities while setting their own schedule.

How much you can make: $1,000 — $500,000/month

How much does it cost to start: $750 (?)

How long does it take to build: 75 days (?)

Wall Street Oasis, the largest online community focused on careers in finance, has over 100 million visitors during its 14-year history and is currently receiving over 2 million visits per month, offering interview courses and mentorship services, in addition to building and investing in a thriving online community.

20. Start an IT company

How much you can make: $500 — $2,400,000/month

How much does it cost to start: $850 (?)

How long does it take to build: 120 days (?)

Marine Digital is a deep-tech company that aims to make modern instruments of decarbonization available for the mass market and has made massive progress in performance digital twin cost reduction (10 times lower than the average market cost), providing opportunities for non-giant marine companies to use it, with 3 pilots earning about €60k.

21. Start a tour company

Starting a tour company is a great way to bring your love of travel to life. You can share your passion with others and help make their dream vacations come true!

There are many types of tour businesses, so choosing something you are passionate about and knowledgeable about is best. Here are a few of the most popular tour companies to start in Germany:

• Food & Drink Tours
• Adventure & Sporting Tours
• Sightseeing & Historical Tours
• Shopping Tours
• and many more!

It’s also essential to determine what mode of transportation you want for your tour company, as this will determine the initial startup costs needed for your company.

To get started, find out if you need a license to operate in your state. Some states require tour companies to be licensed, while others do not. If you are required to be licensed, talk with the licensing agency to find out what steps must be taken before you can apply for that license.

How much you can make: $3,750 — $43,300,000/month

How much does it cost to start: $2,500 (?)

Augustin Ndikuriyo founded Augustine Tours, a travel company that offers wildlife safari and cultural tour experiences around East Africa, which makes a monthly average of €50K/Month and focuses on transformative tourism that benefits visitors and the local communities.

22. Start a coffee cafe business

A coffee shop is a popular spot for customers to enjoy freshly brewed coffee, tea, and light snacks in a comfortable and welcoming environment.

These cafes are typically furnished with comfortable seating, free Wi-Fi, and a pleasant ambiance that provides a relaxed environment for people to gather, work or unwind.

To succeed in this business, it is essential to offer high-quality coffee, create a pleasant atmosphere, and provide excellent customer service.

With the increasing demand for specialty coffee experiences, starting a coffee cafe can be a lucrative business opportunity that caters to the widespread love for coffee and the need for communal spaces to enjoy it.

How much you can make: $13,000/month

Chicago based Ignite Technology and Innovation-owned Momentum Coffee & Coworking, which focuses on coffee, coworking, community, and event space, rakes in about $17-20k a month in revenue, mostly from online and offline advertising, and just celebrated their first anniversary, with plans to open 2 more locations in Chicago in under-resourced communities.

23. Become an online fitness coach

Online fitness coaching is using live or recorded video to offer fitness classes to an online audience at a fee. To become successful in business, online fitness coaches should possess the following personal qualities:

• Stay focused on clients’ needs and goals
• Be ready to walk the talk
• Ask the clients questions
• Focused on educating the client
• Adjust to a language clients understand

Increase in number of internet users and more hours spent online , online businesses will keep thriving.

Therefore, fitness coaches looking to expand their businesses or venture into new markets can consider starting an online fitness coach business.

How much you can make: $250 — $39,875,000/month

How long does it take to build: 142 days (?)

This case study is about a former personal trainer who launched his online personal training platform, TeamFFLEX, starting with no money and a lot of drive, and grew it into a 6-figure business in less than a year, now doing $48,000 a month with potential for continued growth.

24. Start an appliance repair business

An appliance repair business helps clients install, repair, and maintain common household appliances like microwaves, dishwashers, refrigerators, cookers, etc. An appliance repair technician can specialize in certain lines of appliances or offer general services.

To become an appliance repair technician, apply for the prerequisite training course and focus on acquiring the necessary work experience. You may work under an appliance engineer and kickstart your business when you have relevant skills.

How much you can make: $4,000 — $100,000/month

Retro Radio Farm founder, Allen Chiang, earns $50k per year as a side business restoring old radios and offering Bluetooth MP3 upgrades, with the business growing 20% every year.

25. Start an online advertising agency

An online advertising agency helps businesses promote their products or services on the internet.

To start this business on a budget, first learn the basics of digital marketing through free online resources.

Create a professional website and set up profiles on social media platforms to showcase your skills.

Build a portfolio by working on mock campaigns or offering discounted services to friends and family, and gradually market your services to attract clients.

With dedication, you can grow your agency over time.

How much you can make: $2,797 — $1,250,000/month

How long does it take to build: 45 days (?)

Iman Gadzhi made over $1.2M in profit within two years with his social media marketing agency and education company, where he teaches entrepreneurs how to start and scale a profitable SMMA, with over 45 of his students making over six figures with their SMMA, and over 300 students having quit their regular jobs.

26. Start a zapier consulting agency

People are buzzing about Zapier and its potential to be a game-changer in the Salesforce ecosystem. So you should get ahead of the curve and start your own Zapier consulting business.

The growth of the internet and technology has made new firms and industries possible. Zapier is an excellent example of how you can be an agent of change that comes with great income potential. Zapier's estimated annual revenue is currently $122.5M per year . Thousands of companies rely on Zapier today for everything from product development and IT operations to marketing, sales, and support.

How much you can make: $5,000 — $17,500/month

Luhhu, an agency that helps businesses automate their processes using Zapier, was built as a result of the founder's accidental stumble into a freelance career as a Zapier expert, and has become profitable with low fixed running costs and around 1-3 inquiries per day coming mostly from organic search and the Zapier Experts Directory.

27. Start a marketing agency

Marketing agencies can be a great option for businesses looking to advertise in different ways. For businesses, hiring a marketing company can help them achieve success as they don't have to spend money on employees or needed equipment. Marketing agencies are not inexpensive and there are many different variables that come into play when deciding which one is the best fit for your business.

You want to start a marketing agency, but don't know where to begin. You're not alone, there are thousands of entrepreneurs across the globe that have the same ambition. Luckily for you, compiled a list of how other agencies were able to grow their agency and scale effectively.

How much you can make: $1,300 — $465,583,333/month

How long does it take to build: 36 days (?)

A successful podcast production company that grew from one client making $15/hour to a team of 10 contractors producing over 30 shows per week with revenue of over $10k/mo, primarily through referrals and with a focus on providing high personal touch and being picky about working only with clients who are a good fit.

28. Start a freelance writing business

Freelance writing can be a good career choice if you are looking for a flexible online job.

Working as a freelancer gives you the flexibility to define your work schedule. You can work from home at any time. Freelance writers work across various niches, writing about various topics assigned by the client,

To earn good money as a freelance writer, you need the following personal qualities:

• Strong writing skills
• Ability to meet deadlines
• Stay on the cutting edge
• Be a self-starter
• Be up-to-date with the current writing tools & writing trends
• Proper communication skills

How much you can make: $700 — $320,000/month

How much does it cost to start: $300 (?)

How long does it take to build: 30 days (?)

How David Tile turned a freelance writing gig into an $80k/month business, discussing lessons learned through managing growing demands and maintaining a remote team operation.

29. Design a wearable for musicians

How much you can make: $280,000/month

How much does it cost to start: $5,000 (?)

How long does it take to build: 540 days (?)

Soundbrenner raised $1.6M on Indiegogo and sold close to 100,000 smart wearables for musicians, featuring a vibration metronome that can be felt, rather than heard, and released a full smartwatch for musicians; the company's mobile app is the world's most popular metronome with over 6 million downloads and over 600,000 musicians that use it every month.

30. Become a music blogger

A music blog covers different topics of interest among music lovers. With the music industry so popular in 2024, it is a great time to start a music blog. A music blog offers you a chance to get as creative as possible and is also a precious tool to help you promote and publicize music genres.

Starting a music blog is as easy as selecting a music niche. Identify topics of interest and create shareable content.

How much you can make: $996 — $160,000/month

How much does it cost to start: $50 (?)

How long does it take to build: 48 days (?)

Learn how DJ Tobander created a successful niche info-product business generating $1,000 a month through selling collections of DJ sets for special occasions and working with affiliates, with only modest costs and simple tools like WordPress, AWeber, LeadPages, and Digistore24.

31. Start a freelancer platform

Freelancer platform is a place where people come with skills and services to offer and people come who need those skills and services. So we can say freelancer platforms are a marketplace for sellers and buyers of services and skills.

The freelancing industry is growing rapidly and it's becoming a popular career option for people who are "non-traditional" employees. The global Freelance Platforms market size is expected to reach $6.7B by the year 2025 . While working on a full-time job, freelancers simultaneously work on a freelance career. The platforms available online help them to increase their business by attracting new clients.

With all of the businesses looking for help on their websites, it would be a good idea to start a freelancer platform. Freelance platforms do well because people have jobs that need to be done and businesses have the resources to pay for the job at hand.

How much you can make: $3,000 — $5,000,000/month

How long does it take to build: 80 days (?)

Uplink, a German network for IT freelancers, has surpassed 1,000 members and offers job placements for companies with a simple process that charges a commission of 10% to freelancers for the first six months of working with a client through the platform.

32. Start a sustainable mug brand

How much you can make: $650/month

German outdoor enthusiast Melanie founded environmental-friendly business alpengraphics, which creates zero plastic, minimalist campfire mugs with environmentally-friendly practices, earning up to €3,000 ($3,200) per month depending on season, and targeting corporate business customers and recreational companies to gift her products to employees or customers.

33. Start a time tracking app

A time tracking app is a tool used allows its user to clock in/out via an internet-connected device or to use a stopwatch to record the start and end of tasks. The time tracker apps also have analytics and reporting features that consolidate the data so that users can gain insights into time spent on different tasks, projects, and clients.

The growing need among managers and enterprises to improve employee productivity and adopt a remote work culture contribute to the high demand for time-tracking apps.

Therefore, if you are looking for the best App-based business, you may consider developing a time tracker application. Here is a high-level overview of some steps to get you started working on your business idea of the time tracker App

• Define the project scope
• Choose a software development methodology
• Formulate the approach for your development project
• Create a project team
• Develop the project plan with timelines
• Test the prototypes
• Find suitable API solutions
• Publish the Apps

How much you can make: $350 — $500,000/month

How much does it cost to start: $3,000 (?)

Klokki, an automatic time-tracking Mac app for freelancers and makers, was founded by Stas Moor and launched in November 2018; after being featured by Apple in 2019, the app saw 7000 downloads and brought in $400 in one month due to its new add-on feature.

34. Start a selling business on etsy

Etsy is a marketplace where millions of people around the world connect to make, sell and buy unique goods. You can sell unique handmade goods, vintage items and craft supplies on the platform.

Here are steps for starting a selling business on Etsy:

• Create your Etsy Account
• Define the Shop preferences and set a name
• Create a viable product
• Input the payment settings and enter the credit card details
• Open the Etsy shop, set up your bio and shop policies
• Take images of your products and upload
• Include compelling product descriptions and set reasonable prices

Your Etsy shop policies should indicate the processing time, shipping policies, payment options and the returns/exchanges policy.

How much you can make: $1,000 — $40,000/month

Galen Leather, an Istanbul-based e-commerce store specializing in handmade leather goods, experienced a 138% increase in revenue to hit an average of around $40,000 in sales each month, with products like their Moleskine Cover helping the company achieve success.

35. Create an online course

An online course business involves creating and selling digital classes teaching specialized skills or knowledge to subscribed students.

As an entrepreneurial course creator, you identify educational gaps around topics you have expertise in and develop engaging video lessons and supplementary materials.

With flexibility around self-paced or cohort-based structures, building a student base provides passive income potential.

For founders who enjoy information-sharing, launching an online course platform presents a lucrative way to monetize your instructional talents with small startup costs by serving eager lifelong learners seeking convenient access to emerging subjects.

How much you can make: $350 — $3,735,000/month

How much does it cost to start: $1,850 (?)

Lucas Chevillard turned his email marketing consulting for startups into an actionable course that over 1050 people have taken, which he has accomplished through word of mouth, blog posts, and reviews rather than paid acquisition.

36. Start a specialty food business

Specialty food refers to a category of food prepared in small quantities using premium and unique ingredients sourced globally. Quality ingredients add an extra health dimension to produced foods and provide a wide range of micro-ingredients like vitamins, minerals, and enzymes.

According to research, the global specialty food ingredients market is expanding at an annual growth rate of 6.4%.

Therefore, starting a specialty food business in 2024 could be your big-time business idea. Identify a niche and pick a reliable supplier for your business. Decide on the business type and register it before applying for business licenses and permits.

How much you can make: $2,000 — $124,998/month

How much does it cost to start: $7,500 (?)

37. Start a biotechnology business

How much you can make: $45,200,000/month

38. Start a laundry business

Starting a laundry business can be a fulfilling and lucrative venture for entrepreneurs looking to make a difference in their communities. With the right equipment and a commitment to providing excellent customer service, this business idea has the potential to thrive in a variety of locations.

One unique aspect of starting a laundry business is the opportunity to offer specialized services, such as eco-friendly detergent options or same-day turnaround for busy professionals. Additionally, partnering with local dry cleaners or offering pickup and delivery services can set your business apart from competitors and attract a loyal customer base.

In terms of upfront costs, starting a laundry business will require a significant investment in commercial-grade washing machines and dryers, as well as a convenient and well-located storefront. However, with the right marketing strategies and a focus on providing top-notch service, this investment can quickly pay off and result in a thriving business.

Overall, starting a laundry business is a rewarding and potentially profitable venture for entrepreneurs who are passionate about making a positive impact in their communities. With the right approach and a commitment to excellence, this business idea has the potential to succeed in a variety of settings.

How much you can make: $24,000 — $83,333/month

Dhobilite disrupted the laundry market in India by using smartphone technology and becoming India's first app-based, on-demand cleaning service provider, expanding to more than 15 cities, with 20+ stores and 30+ franchises, offering premium online dry cleaning and laundry services, with revenue equally distributed between dry-cleaning and laundry.

39. Start a financial service business

How much you can make: $21,000 — $3,141,666/month

How long does it take to build: 100 days (?)

Contrarian Thinking is a premium membership community that teaches its 1.5 million members how to implement cash flow strategies to achieve financial freedom, with a current run rate of $3 million and a goal of $50 million ARR in five years.

40. Start a transportation service

Transportation businesses offer ridesharing services, haul consumer goods, or ship supplies and products from one location to another. They target individual passengers, other companies, or global business partners.

If you are starting a transportation service in Germany, decide who and what you will serve, set up the business structure, register the business, and apply for the required business licenses or permits. To ensure a profitable business, incorporate proper hiring procedures and keep up with maintenance and recertifications.

How much you can make: $12,000 — $364,000/month

How long does it take to build: 410 days (?)

Mirai Flights is an app-forward private jet booking service with a focus on UK, Europe, Middle East and CIS states, that allows customers to bypass the long wait times with more than 30 parameters analysed in less than 30 seconds, achieving $4.37m turnover from March to December 2021, and planning to increase it up to $10.2m and expand internationally in the future.

41. Start an in-home senior care business

With the busy lifestyle, family members are often absent and employ in-home caregivers to look after the elderly parents.

Caregivers assist the elderly with personal care routines, including bathing, grooming, dressing, toileting, and exercising. Caregivers also oversee medication & prescription usage and administer medicine.

Researchers anticipate a shortage of more than 100,000 caregivers for the elderly in the next decade. Therefore, starting an in-home senior care business is a great opportunity if you enjoy caring for the elderly and spending time with them. You can choose to work as an overnight caregiver or whichever work schedule suits you.

How much you can make: $250,000/month

The CareSide scaled to $5 million in revenue over 3 years by utilizing a data-driven approach to sales and marketing, with a focus on Google Adwords and Facebook ads, and implementing extensive automation into back end systems.

42. Become a delivery driver

The delivery driver side hustle can be a fantastic idea if you own a delivery car and a valid driver’s license. Receiving deliveries at home or at the office has become an almost undeniable convenience for most people. There are more and more platforms that deliver all kinds of products and, therefore, the demand for couriers is also increasing.

As an independent delivery driver in Germany, you choose your most convenient working hours, and the more deliveries you complete, the more your earnings. Besides, you interact with a wide range of people from different backgrounds.

Your core roles will include loading and unloading cargo, delivering goods to the customer, accepting any payments for shipments, and handling paperwork.

How much you can make: $4,000 — $25,000/month

Time commitment per week: Min. 10 hours/week

Muver is a mobile app for gig workers allowing them to multi-app seamlessly between Uber, Uber Eats, Doordash, Grubhub, Lyft, Instacart, and more within a single app with over $270k revenue in the past 12 months.

43. Start a home tutoring business

A home tutoring company is an educational company that offers private tutoring from a tutor who visits the students at the student’s home.

Home tutoring is a growing business opportunity for motivated people and comes with the flexibility of working anytime, anywhere, and creates a passive income.

If you love teaching and helping others, one way to make money is to start a home tutoring business in Germany. Whether you want to tutor kids or adults, there’s a niche for you.

Once you have started your home tutoring business, promote it by putting fliers at other stores and on bulletin boards at colleges and libraries. Also, engage parents and guardians for home tutoring opportunities.

44. Start an auto parts shop

If you want to start a retail business in the automobile industry, consider an auto parts business in Germany.

The auto parts business is one of the most successful businesses in the world. There are many Auto Parts Businesses in the United States, Canada, and the UK, where most are part-time.

Listed are the steps on how to start an auto parts shop business.

• Pick a location
• Do your market research
• Secure all permits and licenses
• Open a bank account for business transactions

How much you can make: $45,000 — $600,000/month

This case study follows an inspiring 22-year-old entrepreneur who started an eCommerce store for aftermarket vehicle accessories, making 5x the amount of money he used to make per month, and generated over $90,000 in sales last year.

45. Start an e-commerce implementation consulting business

E-Commerce consulting business targets sellers who lack experience and resources, helping them create, optimize, and execute product listings and storefronts to achieve their business goals and objectives.

eCommerce implementation consultant can provide complete catalog management or selected services, where the agency will assist online sellers on things like online advertising campaigns. Therefore, the consulting agency plays an essential role in helping the business meet its goals.

Starting an e-commerce implementation consulting agency is a massive and lucrative business opportunity. To be successful, you must put in hard work, research, dedication, and an adequate budget. By working hard and researching, you can maximize your potential to start and build a successful business.

How much you can make: $290,000 — $2,033,333/month

How much does it cost to start: $4,000 (?)

Digital Position, a digital marketing agency, was founded by Roger Parent, who was unhappy being underpaid at his job; the company is now generating over $330k/month in revenue, and aims to generate $5m in 2022, with a long-term goal of hitting $30m before Parent is 40.

46. Start a grocery delivery service

Grocery delivery is an on-demand service where clients shop for groceries, and you deliver to their commercial or residential premises.

As a carrier in grocery delivery, you have an opportunity to maximize your output, as you can serve multiple customers in one trip. Besides, you get to choose your preferred working time and location.

How much you can make: $83,333,333/month

47. Start a daycare

Daycares provide educational, medical, and social services for the children of working parents either during school hours or when the parents are out of the home for an extended period of time. This can be a lucrative enterprise if you start a daycare in an area where it is needed.

As the growth of families has become dependent on two incomes, the need for quality daycare has skyrocketed. Starting a daycare business in Germany is challenging but rewarding. You will face many challenges but can overcome them as long as you are ready to make the sacrifices required.

48. Become a crypto miner

Crypto mining is creating new bitcoins by solving complicated math problems that verify bitcoin transactions.

To get established as a crypto mining expert, you need to have a wallet for your cryptocurrency so that the tokens or coins have a place to land. Each crypto miner has to be a member of an online crypto mining community. Besides, crypto miners need specialized machines built and tuned specifically to mine cryptocurrencies. The interesting thing about crypto mining is that more people mining bitcoin does not lead to an increase in the number of coins being mined.

49. Start a government contractor business

How much you can make: $6,800 — $600,000/month

PVM, Inc offers software engineering services related to big data storage and analytics to customers in both the private and public sectors, ranging from local police departments to federal agencies, with partnerships with Palantir, Amazon, and MicroFocus.

50. Start an errand service

Errand services help people and businesses who have daily errands to run but need an extra hand. So, they seek professional help who can do their chores on time with utmost efficiency.

You can provide various services as an errand business, including grocery shopping, picking up + sorting through mail, going to the bank, and much more.

Starting an errand business in Germany is relatively easy. Consider offering package deals as a way of getting and retaining customers. Most errand businesses charge per hour, and you may charge per mileage if the task involves driving.

51. Sell auto alarms

Although cars come with an inbuilt alarm system, owners choose to upgrade the alarm systems to keep the vehicles safe from thieves.

Therefore, the auto alarm sales and installation business is in high demand and can be lucrative to start as long as you love things to do with car alarms and GPS tracker systems. To ensure professional services, consider undertaking the alarm technician’s course. Through the course, you will learn how to install or service the alarm systems and related components.

Some of the services offered by alarm sales and installation professionals include fitting alarms and immobilizers, tracking devices, upgrading the existing systems, fault diagnosis, and repairs.

Before starting, research the car alarm industry in your area and check the current alarm installation prices, the alarm trends, and find out what customers want.

52. Become a cake decorator

Becoming a cake decorator can be an enjoyable and uncomplicated venture to embark on, particularly if you have a passion for baking and creativity. It enables you to explore the thriving bakery and wedding industries while showcasing your artistic abilities.

This business involves designing and hand-decorating specialty cakes for various events and occasions, using your artistic abilities to create beautiful, custom-edible works of art.

To start a successful cake decorating company, learn proper cake decorating techniques, purchase quality ingredients and equipment, build a portfolio to showcase your skills, and implement good marketing tactics to attract potential clients like wedding planners, event companies, bakeries, and direct consumers.

How much you can make: $4,000/month

From pastry chef to owner of a successful bakery, learn how Bradford Bakery achieved a 550% increase in SEO in just a few months through community outreach, building a website, and utilizing social media and advertising on platforms like Facebook and Groupon.

53. Start a toy manufacturing

Toys are an integral part of childhood. The toy market is expected to reach $103.8 billion by 2027. So if you are looking for manufacturing business ideas to start on your own, entering the toys industry could be a great start.

Before getting started, you want to choose a niche, there are various types of toys available in the market. You can start by making : Educational toys, Soft toys, Outdoor toys, creative toys, electronic toys, arcade games etc.

How much does it cost to start: $20 (?)

How long does it take to build: 1 days (?)

54. Start a legal services business

Cryptocurrency lawyers are professionals who offer sophisticated and knowledgeable legal counsel to clients navigating the rapidly evolving cryptocurrency and blockchain space. They provide clients guidance concerning litigation, money transmission, token offerings, and other crypto-related issues.

To become a cryptocurrency lawyer, you should have in-depth knowledge about token issues. Besides, you should have a certified degree of law from an accredited institution. Lawmakers in Washington D.C. and across the world continue figuring out how to establish laws and guidelines to make crypto safer for investors and less appealing to cybercriminals.

Therefore, this is a great opportunity for crypto lawyers to participate in shaping the future of crypto transactions.

How much you can make: $4,500 — $250,000/month

How long does it take to build: 365 days (?)

This case study follows the growth from scratch of a Personal Injury and Criminal Defense law firm that started from direct mail campaigns and has now expanded into a multi-million dollar-a-year business with the goal of becoming an 8 figure firm, while maintaining a customer-centric approach and fostering a culture of innovation and excellence.

55. Become a computer refurbisher

Computer refurbishing is the process of restoring used computers to working conditions. Refurbishers typically purchase used computers from individuals or businesses, and then they clean them up, install new parts, and test them to make sure they are in good working condition.

To start this business, you'll need skills in data recovery, hardware repair, and software troubleshooting. It is a perfect idea for those who have an interest in technology and a knack for repairing electronics.

The average Computer Repair Technician in the US makes $51,129. The salaries of Computer Repair Technicians range from $19,892 to $74,573, with a median salary of $55,440.

With the ever-growing popularity of laptops, tablets, and smartphones, there is a great demand for refurbished computers. And with data science and data analytics, you can easily identify which computers are in high demand and how to best refurbish them.

Starting this type of business is a great idea for those with an entrepreneurial spirit and a passion for technology. If you can navigate the regulations, this can be a lucrative business with a lot of growth potential.

How much you can make: $13,500,000/month

OWC Larry, founder and CEO of Other World Computing, shares how he started his business at a young age with just a credit card, now experiencing a solid year-over-year growth with a CAGR of 43.78% over the past 33 years.

56. Start a child care business

Starting a childcare business is a great way to build a steady income. You will have the opportunity to be your boss and set your hours even from home. You will have the satisfaction of building one-on-one relationships with children and watching them grow over the years.

A childcare business is an excellent idea. It is both a personal and economical investment for its owners. This is especially true if you are considering starting your non-profit organization or becoming licensed to provide child care. Running a childcare business allows you to help children develop while also making money. As with any business endeavor, running a childcare business has its ups and downs, but it can be very rewarding.

Twinkle Toes Nanny Agency has grown from a side hustle to over 20 locations in 5 states, offering an impressive franchise model with almost no overhead and a strong ROI, due to their online scheduling system, which creates a network of nannies and families ultimately providing quality in-home childcare for families.

57. Become a graphic designer

Graphic designing involves creating sketch designs and materials for corporate clients, advertising agencies, public relations firms, and publishers. Besides, graphic designers provide visual solutions to specific company images, log design, and branding problems.

Graphic design is an excellent career for creative thinkers who enjoy using their talent and artistic skills combined with technology and communication abilities to come up with unique solutions for their clients.

How much you can make: $8,000 — $81,000/month

Draftss.com is a productized graphic design and front-end code service on subscription that made $66k ARR in 2019, has an MRR of $9.6k as of July 2020, and offers add-ons such as designers being added to team in interacting tools and front-end code services on WordPress using various page builders like Elementor and Divi.

58. Start a gym

Over the last decade, more people across the globe have become self-aware of the importance associated with living a healthy lifestyle.

As a result, the gym has become a trend for millions of people, leading to a rapid increase in the size and popularity of the global fitness industry. According to statistics , the global fitness club industry is worth over $96 billion.

Therefore, starting a gym could be a great business opportunity.

How much you can make: $20,000 — $1,200,000/month

How long does it take to build: 227 days (?)

Live Fit, a personal training company founded in 2011, grew from earning $80,000 in their first year with two trainers to earning over $760,000 in 2019 with 12 trainers and two locations, thanks to a focus on building trusting relationships and providing a variety of services to clients.

59. Start a grocery store

A grocery store sells a wide variety of food products, fresh or packaged, and other household & personal care items. The grocery store industry is the largest retail channel that makes $682 billion in the United States.

To start a basic grocery store, you can expect to spend a minimum of $50,000. Ideally, the bigger expense would be the rent, equipment, labor cost, cash registers/POS systems, and software. Some of these are recurring monthly fees. However, the location, size of the store, competitors, and local customers will significantly impact the business. A new grocer should sell more items for a lower price to make a more significant profit.

A new grocer can also save costs by buying the items from local distributors. The distributor is the middleman between the manufacturer and the grocery store selling it. Once the store cost and location are decided, the next step is to obtain a seller license. In most states, a grocer's license is required to run a grocery store.

Thus an average grocery store has a profit margin of 3% to 5%. The profit rates depend on the store's location, size, and popularity. On average, a small to medium grocery store can make a profit of up to $300,000 annually if all the profit factors are considered.

Another way to make your business more profitable is to diversify your store and add amenities like a coffee shop or stocking up the front of the store with magazines, batteries, etc., as these items can cross a margin of up to 70%. As a rule of thumb, offering lower prices on higher purchases will ultimately win more customers and increase profitability.

60. Start an eco-friendly fashion business

How much you can make: $5,000 — $17,000/month

KAHINDO is a sustainable women's luxury fashion brand that celebrates African fashion and promotes ethical work practices, with annual sales of $60k and wholesale clients like Rent The Runway.

61. Become a handyman

Handyman offers various home repair services based on their skill set and the customer’s needs. Also known as a fixer, the handyman repairs works both on the interior and exterior.

The handyman business is a great part-time opportunity, and you can earn a high-profit margin while the overhead costs are low.

How much you can make: $8,000/month

Learn how a third generation business owner started a profitable pool service and installation business in Southern Ontario, earning an average of $8000/month net revenue during peak season and growing from servicing 0 to 350+ pools since May 2016 by doing things that don't scale, such as manually talking to customers and focusing on the ideal customer.

62. Start a car washing and detailing business

The carwash business is already a multi-billion-dollar industry with room for growth.

With the number of vehicles per household increasing daily, starting a car wash and detailing business could be a profitable idea.

If you have a piece of vacant land in the right location, you can get into the carwash business. You can set up an in-bay automatic carwash, self-washing carwash, touch-free carwash, or a wide range of other options.

63. Design a digital file platform

How much you can make: $6,500 — $40,000/month

How much does it cost to start: $30 (?)

DGLegacy is a global digital inheritance document and password manager service that has already gained 5,000 subscribers in one year and plans to reach 20,000 by the end of 2022, providing a solution for the multi-billion dollar global problem of abandoned assets and unclaimed assets.

64. Start an art consulting business

How much you can make: $100,000/month

Saleh Sokhandan, founder of Salso design studio, shares how he grew his business to $400k in revenue per year by using optical illusion techniques in decoration, advertising, entertainment, and product design for clients ranging from private individuals to big commercial companies and investors.

65. Start an ecommerce reselling business

An eCommerce reseller purchases services or goods for resale rather than consumption. Becoming an eCommerce reseller is a great way to launch an online business without worrying about production costs.

To start an eCommerce reseller business, you do not need a website immediately! You can focus on a social media-based reseller business and create a website later as your business grows.

How much you can make: $4,000 — $150,000/month

How much does it cost to start: $4,998 (?)

BitsForDigits is an acquisition marketplace for internet startups and online businesses looking to exit, with steady growth in the number of signups and making $6,000 per month, attracting customers organically with zero marketing spend.

66. Start a plant stands business

The ornamental indoor houseplant trends enhance aesthetics, complementing the interior design and bringing the room together. The hanging plants are among the favorite indoor plants you will find today. To create a strong aesthetic with climbing plants, décor experts use plant stands.

A plant stand is a wooden, metallic, or plastic material that holds potted houseplants. Plant stands are available in different shapes and sizes, and maybe a simple pillar to hold one pot or multiple levels to hold many plants.

Given the increased adoption of climbing plants in indoor space décor, introducing the plant stands can be a lucrative business opportunity. If you are starting a plant stand business, your customers or target market can include home décor experts, offices, and homeowners.

Founder Monika Kalinowska turned her passion for plants into a sustainability and animal welfare-focused business, quadrupling revenue each year to reach +/-100k a month in 2021, by focusing on Instagram marketing, good SEO, a strong email list, and running workshops to attract and retain customers.

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• 11 Steps to Start a Business in Germany
• Freiberufler vs Gewerbe
• Legal Forms in Germany
• Tax IDs Guide
• English Tax Filing Tools
• Health Insurance
• Gewerbeanmeldung

How to Start a Business in Germany

Steps to Success

We have compiled an overview of the most important steps on the path to self-employment for you – from finding ideas to the business plan to registration.

1. Sort out your German self-employment permit

This applies to Non-EU nationals who need a special self-employment visa or resident permit to start a business in Germany. The requirements for each nationality may differ so make sure to consult your local German embassy for preparing your visa application. If you want to freelance in Germany, then read our visa guide for non-EU citizens here.  

Please note: In some cases, you may have to deal with Step 2-4 as a part of your visa application. 

2. Find a business idea

At the beginning of every successful business is a viable business idea. You don’t have to reinvent the wheel with it, but there must be a market and a need, otherwise, you will have a hard time making the idea a success. 

3. Write a business plan

As soon as you have a viable idea to start a business in Germany, you should start writing a detailed business plan. There are a number of templates available online. Watch this space since we are going to release a business plan template in English in near future.

4. Create a financial plan

You now know what your business goals are and how you want to achieve them. But to realise your business in Germany you need funds, especially in the early stages, until you make a profit. In order to approach investors (whether banks or private investors), you will need a financial plan that contains all the important figures.

5. Clarify trademark rights

Once the finances are secured, you need to think about a business name. On the one hand, it must be catchy, but on the other hand, it must not already be protected by another company. You must also think about protecting your brand name and domain if you want to use it permanently.

6. Obtain permits

So now that you have a name for your business in Germany, you need to obtain all the necessary permits. Whether it’s the building authority, the health authority or the trade inspectorate, you can find out which permits are important for your business in our guide to the authorities.

7. Company form, account and contracts

Before you formally start a business in Germany, you need to think about what legal form your business should take and what the consequences will be.

It is relatively easy to set up a sole proprietorship, but setting up a limited liability company is more complicated and requires you to go to a notary. For this, you also need a dedicated business account and necessary contracts.

Learn more about various legal forms in Germany.

8. Choose location

After all the paperwork, everything starts to come around gradually. In the case of a brick and mortar business in Germany, you should think about the location. It can make the difference between success and failure.

If you launching an online business in Germany, you should still know your geographical region and how you can reach your “local customers” there. This means: how to become visible to potential customers on Google, Facebook, Amazon etc. 

9. Register with the authorities

Now you’re almost there in your journey of setting up a business in Germany.

• If you are a freelancer this is the process to   register your freelance business and apply for a tax number at the local tax authorities. 
• If you are a sole trader, this is the process to register your business in Germany.

10. Create your corporate identity

Finally, it’s time to get creative! Make your business in Germany instantly recognisable. Now you can design a logo, website, business cards, letterhead and much more. This step should not be underestimated. You want to stand out from the rest and have a memorable brand identity.

11. Start customer acquisition

You’re ready to go and launch your business in Germany. Hopefully, you have already worked this out customer acquisition in your business plan. Now you have to turn all those plans into reality, place advertisements, rank yourself in search engines and promote your business on social media, and get new clients to start a successful business in Germany.

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How To Start A Business in Germany As A Foreigner

Researched & written

by Yvonne Koppen

April 19, 2024

This guide will teach you how to start a business in Germany. It is not an easy task, but it is not impossible either. The German government is not only seeking skilled workers but also entrepreneurs from abroad to help grow the German economy. One thing that makes starting a company in Germany somewhat difficult is the language barrier; however, there are plenty of resources available in English to help with that!

This guide will only focus on how to start a small business in Germany as a foreigner and will not cover founding a company in Germany from abroad.

🖌️ Table of Contents

Can foreigners start a business in Germany?

If you are an EU citizen or from Norway or Switzerland, you can become self-employed or start your own business in Germany at any time, as long as you register as a resident. 

If you are from outside the EU, you need to have a visa and residence permit allowing you self-employed work in Germany. Please refer to our other guide on  how to obtain a freelance and self-employed visa in Germany .

Self-employed vs. freelancing in Germany

Suppose you are planning to start a business by yourself and join the trend of solopreneurs. In that case, you need to distinguish whether you will operate as a freelancer ( Freiberufler ) or self-employed trade person ( Gewerbetreibender ). Since you need to fulfill different requirements for both categories, you must identify the category for your business from the start.

Freelancers provide services in the so-called liberal professions ( Freie Berufe ). In Germany, those typically are artists, teachers, doctors, engineers, scientists, software developers, designers, lawyers, tax advisors, and others. You can find an unofficial list of professions  here  or take a look at the legal paragraph  §18 EStG . We go into more detail about freelancing in Germany in our dedicated guide. 

Read Our Related Guide

Freelancing In Germany As A Foreigner [How-To Guide]

If your business idea does not qualify as a liberal profession, you are subsequently a tradesperson. Thus, you will need to register with the trade office ( Gewerbeamt ) in your city to attain a trade license. Should you run an online business, whether it is an Etsy or Shopify shop or a blog that is earning money, you need to register it as a trade business.

Requirements for a visa for self-employment in Germany

To become self-employed in Germany, you need to provide proof of the following requirements for both the visa and the residence permit for self-employment:

• Proof of economic interest for your business in Germany or a specific area
• Expected positive impact of your business on the German economy
• Enough financial resources through equity capital or a loan approval
• Sufficient pension provisions if you are 45 years or older
• You will also require German health insurance already before applying for your visa. This is a complex topic, especially for self-employed foreigners, and we have written an  in-depth guide on private vs. public health insurance in Germany . Your best option to get the matching German health insurance for you is to consult  Feather . They provide insurance services for foreigners and have great experience with the self-employed.

• Insurance service provider with strong customer focus
• Website and customer support in English
• 100% digital
• Free travel insurance for your first 90 days in Germany

Types of businesses in Germany

Since there are many different trade business forms, let’s look at the various legal forms and their meanings. There are three main categories of business types:

1. Sole proprietorship ( Einzelunternehmen )

This is a favorite option for individuals starting their own businesses. As a sole trader, your business is generally referred to as a  Gewerbe . If you earn less than 22.000 euros in the first year and not more than 50.000 euros in the second year, you can also run your company as a small business ( Kleingewerbe ) and benefit from less bureaucracy. As a sole proprietor, you are fully liable for all business actions and debts.

2. Business partnership ( Personengesellschaft )

Most simply, a business partnership could be described as a sole proprietorship but with two or three people or companies. There are several different forms of a business partnership. The most common ones are the GbR ( Gesellschaft bürgerlichen Rechts ), a civil law partnership, an OHG ( offene Handelsgesellschaft ), a general commercial partnership, or a KG ( Kommanditgesellschaft ), a limited partnership. Except for the KG, all partners are fully liable for all business debts.

3. Corporation ( Kapitalgesellschaft )

The corporation is the favorite legal entity among German Start-Ups or funded companies. The most common German corporation is the GmbH ( Gesellschaft mit beschränkter Haftung ), a limited liability company. A GmbH requires 25.000 euros capital but protects your private finances since it is a limited company. The UG ( Unternehmergesellschaft ), also referred to as Mini-GmbH, may be an option for entrepreneurs who don’t have the necessary start capital for a GmbH, as the UG only requires 1 euro as a start capital. 

We highly recommend consulting legal experts to find out which business formation is best for your company plans. The service provider  firma.de  (a company in Germany is often referred to as a Firma 😉) offers a free initial consultation . They also offer affordable packages to help you form and register your company and connect you to legal and tax professionals.

For the scope of this guide, we will continue focusing on small businesses and not on funded Start-Ups.

How to register a business in Germany?

These are the steps you need to take to register your  Gewerbe  in Germany, regardless of whether it is a physical or online business.

1. Register your address

After you have arrived in Germany, you need to  register your address with your local  Bürgeramt . 

2. Get a residence permit for self-employment

Make an appointment with your foreigners office ( Ausländerbehörde ) to change your visa to a residence permit that allows you to start a business.

3. Get your trade license

Once you are registered and allowed to stay in Germany, it is time to register your business with the trade office ( Gewerbeamt ) to get your trade license. Your trade license ( Gewerbeschein  or  Gewerbeanmeldung ) gives you the right to get involved in business activities.

To register with the trade office, you need to fill out a registration form. Firma.de has a detailed English guide on how to fill it out. Once you complete the form, you need to sign it and send it by postal mail to your local  Gewerbeamt . You can find the address of your responsible authority on  this homepage . In the drop-down menu, select  Gewerbeämter  and then enter your postal code. We also have a guide on  how to send a letter in Germany  to help you out with that step as well. 

In some trades, you also need to have special licenses; such areas are gastronomy, driving schools, taxi companies, skilled craft businesses, insurance brokers, and others. For more information, take another look at the very informative website of  firma.de  or check whether your qualification gets recognized in Germany on the homepage of the  German government . 

4. Register with the tax authorities

Next, you need to register your business with the tax authorities ( Finanzamt ). This is a very tedious task, even for Germans, as it requires you to fill out a very complicated seven-page questionnaire ( Fragebogen zur steuerlichen Erfassung ). 

The easiest way to complete this step is for you to use the free services of a company called  Sorted . They focus on making taxation for freelancers & self-employed in Germany easy and guide you through the process of filling the questionnaire all in English. They also submit it to the tax authorities. Upon processing, your  Finanzamt  will send you your  business tax number  and VAT number if you applied for it.  

Tax Number And Tax ID In Germany [What’s The Difference?]

If steps 3 & 4 sound too complicated and bureaucratic for you, you can simply  hire the services of firma.de , who guide you through the registration process in no time and fill out all the forms for you for a very affordable price. 

5. Open your Business Bank Account

Although this is not an absolute must, we highly recommend you to set up a separate  business bank account  next to your  private bank account in Germany .

There are two main reasons:

1. Most banks that offer private bank accounts exclude business use in their terms and conditions. So by using your regular bank account for such, you run the risk of getting your account closed.

2. Keeping the books of your company clean is very important in Germany. Therefore, having a clear overview of your income and expenses is crucial.

There are multiple banks tackling the growing need for modern banking for small and medium-sized businesses, such as Finom ,  Kontist , and  N26 . Most of these banks also allow connecting specific accounting software to simplify the bureaucratic burden.

We have written an in-depth guide, highlighting and comparing the  best bank accounts for freelancers in Germany , which also apply for the self-employed .

5 Best Banks For Freelancers In Germany

Is it difficult to start a business in Germany?

Technically it is not difficult to start a business in Germany. There are very clear steps that you need to take as a foreigner:

• Register your address in Germany
• Get a residence permit for self-employment
• Get your trade license
• Register with the tax authorities
• Open your Business Bank Account

We have explained the steps in detail above for a sole-proprietorship.

However, bureaucracy tends to be a tripwire for many foreigners when it comes to starting a business in Germany. If you are in doubt or would like assistance, you can reach out to  firma.de , who happily guide you in English to start your business in Germany.

How much does it cost to start a business in Germany?

To start a  Gewerbe , you really only need to pay the registration fee, which ranges between 10 and 40 euros, depending on the region you are in. And that’s it. You decide about all other costs, depending on what is necessary for your business.

To found a company as a GmbH, you should plan around 1.000 euros in fees for the necessary notary, contracts, additional registration in the commercial register, etc. Additionally, you need at least 50% of the required equity capital (25.000 euros) during the foundation, so 12.500 euros.

An overview of business tax in Germany

As a sole trader in Germany, you have to deal with three different types of taxes.

Income tax for the self-employed in Germany

As a sole proprietor in Germany, your revenue (reduced by business expenses) is the basis for taxation. The general income tax applies, which is a progressive tax that ranges between 14% to 42%. Additionally, you will have to pay 5,5% solidarity tax and  church tax  if you are a member of the church.

To get an idea about how much income tax you will need to pay on your estimated income, you can use this  income tax calculator  for Germany. You can translate the page to English by using Chrome as a browser. With a right-click, select ‘translate to English’.

When you register your company with the tax authorities, you need to predict your revenue for the coming years. Depending on your predictions and your profession, the finance authorities will inform you whether you will need to pre-pay your taxes monthly or quarterly, or whether a yearly post-pay is sufficient. Because of this system, you may end up over or underpaying taxes. To balance your tax payments with your actual income at the end of the year, you need to  submit a tax declaration  within the first six months of the following calendar year.

While there is very easy-to-use  tax software  available in English, the benefits of hiring a tax consultant may outweigh their costs, as they are experts in identifying areas to reduce your taxes and save you a lot of money.  Sorted connects you to certified English-speaking tax consultants , who can help you with your self-employed tax declaration and other tax-related questions. 

Trade tax for the self-employed in Germany

Unlike freelancers, who are exempt from this tax, you will eventually need to pay trade tax if you are self-employed with a trading company. Your obligation to start paying trade tax starts when your profit is above 24.500 euros a year. This also means that you will not pay trade tax on the first 24.500 euros of profit each year.

The trade tax gets calculated based on a combination of a uniform tax rate of 3,5% (base rate) and a municipal tax rate. How much trade tax you need to pay depends highly on where your business is registered, as this tax is a municipal tax. Each communal area and city has a different multiplier, the so-called  Hebesatz . It ranges from 200% to 900%, with an average of 402% in 2018. We know that this may sound like a lot of gibberish right now, but we will give you a calculation example to help you understand. 

Here is an  example  of how the payable trade tax gets calculated:

You can calculate your trade tax with this  online calculator . 

Now here comes the great news! Yes, there can be great news even within the dreary tax topic. To avoid double taxation of income and trade tax, you can deduct a big part of your payable trade tax from your income tax. The factor to calculate the deduction has been set at 3,8 times the trade tax measuring amount. Bear in mind, that the deduction can never be higher than the total trade tax measuring amount. Let’s look at yet another calculation to understand how much of the trade tax you can deduct from the payable income tax.

In this example, 10.401 euros of the 10.948 euros payable trade tax can be deducted from the income tax.

Combining these two simplified calculation examples, the total payable tax is 35.842 euros (trade tax of 10.948 euros + payable income tax of 23.596 euros + solidarity tax of 1.298 euros).

VAT tax for the self-employed in Germany

While filling out the tax questionnaire to register with the  Finanzamt , you will have the option to request a  VAT number  ( USt-ID ). Whether or not you need to charge VAT tax ( Umsatzsteuer ) depends on your estimated revenue for the first two years and whether you operate within Europe. 

Especially if you are just starting your own company, it is not always easy to predict how much money you will make in the first year. If you earn less than 22.000 euros in the first year and not more than 50.000 euros in the second year, you can choose not to charge and pay VAT tax. In this case, you will qualify as a small business owner ( Kleinunternehmer  or  Kleingewerbe ). 

You can, however, opt to charge and pay VAT tax from the start. If you do so, you need to stick to your decision for at least five years. We strongly advise you to consult a tax advisor about your company to make the best decision for yourself.  Sorted  also offers on-demand access to qualified tax advisors who speak English. 

Accounting for small business owners in Germany

Next to taxation, accounting is probably the least liked topic of running one’s own business. However, especially in Germany, it is super important to  keep your books clean and orderly from the beginning . One major reason why we suggest that you open your own  business bank account . 

As a business owner in Germany,  you need to keep and archive  all of your invoices (incoming and outgoing), receipts, bank statements, and pretty much any other movement of assets  for ten years . Within those ten years, you can always get audited by the  Finanzamt .

To help you with that and save a huge amount of time, you can use one of the accounting softwares for Germany that is available in English, such as  FastBill ,  sevDesk , and even  Sorted . You may also hear of  Lexoffice , as it is very popular in Germany; however, their interface is only available in German. Most softwares you can also connect to your business bank account to link invoices to payments, etc. 

Please refer to our guide on freelancing in Germany to learn more about  what information needs to go on your invoices .

Insurances for business owners in Germany

As a German resident, there are a few  insurances you must have . When being self-employed in Germany, you might want to consider adding a few professional insurances to those that only cover your private life, such as professional liability insurance.

Please refer to our guide on freelancing in Germany to  learn more about insurance for business owners in Germany .

This guide gave you a great insight into what it takes from the immigration and bureaucratic side to start your own business in Germany. Now it is up to you to dig deeper, develop a business strategy that works for the German market and consult firma.de to have a smooth start.

We wish you all the best in your business endeavor! 🚀

Disclaimer: Neither myself as the author of this article, nor Simple Germany as a business, are qualified to provide tax and business advice under German law. We cannot provide specialist tax and insurance services beyond any of the general tips contained herein. For tax advice, we strongly recommend you consult a professional tax consultant. 

This article contains affiliate links . When you click on the links to the products we mention in this article and purchase them, we will receive a small commission. It will not make any difference to you in price; however, it allows us to keep Simple Germany alive and striving.

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About the Author

Yvonne Koppen is a researcher and writer at Simple Germany, focusing on demystifying German bureaucracy for international skilled workers.

She has lived and worked abroad, which helps her understand how difficult a move to a new country can be. Beyond her professional pursuits, Yvonne loves to plan and go on road trips, puzzle, and do a triathlon here and there.

She is committed to creating accessible, empowering content through her writing and YouTube videos. Yvonne's passion for continuous learning and her ability to simplify complex topics make her an invaluable resource for expats seeking to navigate their new life in Germany.

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Starting a Business in Germany: A Guide for Foreigners In 2023

In the realm of global entrepreneurship, Germany has emerged as a prime destination for foreign investors and startups. The nation boasts a robust economy , a well-regulated legal framework, and a vibrant industry-specific market.

From understanding the business culture to registering and financing your business, succeeding in this diverse economic landscape requires comprehension of several key aspects.

By offering an in-depth exploration of Germany’s economic climate, legal structures for businesses, registration and approval process, and securing financing and labor laws, this guide aims to equip potential investors and business owners with the necessary knowledge to establish and flourish a business in Germany.

Table of Contents

Starting a Business in Germany as a Foreigner

Germany’s economic climate.

The German economy, the largest in Europe and the fourth largest in the world offers a robust and stable platform for businesses to thrive. Germany has a diverse economy , with an emphasis on industries such as automotive, electrical engineering, chemical, and machinery. Despite global economic uncertainties and the impacts of COVID-19, Germany’s economy has demonstrated resilient growth bolstered by its strong domestic market and export activities.

Legal Framework in Germany

Germany has a comprehensive legal framework designed to protect and guide business operations. For foreigners wishing to start a business, the country offers clear guidelines on business registration, tax compliance, employment laws, and environmental regulations among others.

You must register your business with the local trade office (Gewerbeamt) and the tax office (Finanzamt) to ensure regulatory compliance. Despite its complexity, the German legal system has been highly praised for promoting fairness and predictability, vital factors for any thriving business environment.

Job Market and Work Ethics

Germany’s job market is known for its professionalism and high skill level. The country excels in sectors such as engineering, manufacturing, and technology and has a high demand for experts in these fields. Work-life balance, punctuality, and efficiency are highly valued within the German corporate culture.

In addition, Germans emphasize on direct, honest communication and decision-making based on consensus. For foreigners, understanding these work ethics and values is fundamental to successfully navigating the business landscape.

Industry Strengths and GDP

Germany’s dominant industries include automotive, chemical, electronics, and manufacturing, all of which significantly contribute to the country’s GDP. Germany is renowned for its high-quality products, driving its export-oriented economy.

Remarkably, the automotive industry is the largest in Germany and is one of the biggest industries worldwide. In terms of GDP, Germany generates a significant contribution from its well-balanced mix of services, manufacturing, and agriculture sectors.

The Business Culture in Germany

In business, Germans value punctuality, directness, and efficiency. Contracts and agreements are seen as strictly binding, with little to no room for ambiguity. Hierarchies in companies are often rigid, with clear demographics between management and staff.

Negotiations follow a logical and methodical approach and hard facts and statistical support are crucial in decision-making processes. Networking is also a significant aspect of German business culture, often occurring at trade fairs, association meetings, and social events.

Launching A Business As An International Entrepreneur

Germany extends a warm welcome to foreign entrepreneurs who wish to launch a business within its borders. Even if you are not a German national, you will still be granted the exact same business rights as a German citizen. Therefore, you can legally form any type of company that is recognized by the German legal system.

Please note, if you are not currently residing in Germany, or if you hail from a country outside of the European Union, you may need to take extra steps, such as securing a visa specifically designed for self-employed individuals.

Be sure to capitalize on the multitude of resources available to you, such as local chambers of commerce, trade associations, and government agencies. These organizations can provide you with a wealth of knowledge and assistance as you navigate this process.

Deciding on Legal Structure of Business

Understanding germany’s diverse business structures.

When you are planning to start your business in Germany, it’s crucial to familiarize yourself with the various legal business structures the country offers. The framework you choose will significantly impact how your business operates, so it’s imperative to select wisely. Consider each structure carefully as an understanding of the pros and cons is crucial at this early stage of planning.

Entrepreneurial Company (UG)

The Unternehmergesellschaft (UG), or entrepreneurial company, is a type of limited liability company, making it appealing to many foreign entrepreneurs. The UG’s main attraction is the low minimum capital requirement which can be as little as €1. However, 25% of the company’s profits must be stored in a legal reserve until the legal reserve reaches €25,000. This makes it an excellent option for startups or small businesses.

The establishment process of UG is relatively straightforward, but it does require legal documentation, including a memorandum of association and articles of association, which have to be notarized. It’s also compulsory to register UG in the German Trade Register.

UG is subjected to corporation tax, trade tax, and the solidarity surcharge.

Limited Liability Company (GmbH)

Gesellschaft mit beschränkter Haftung (GmbH) or a Limited Liability Company is one of the most common forms chosen by foreign entrepreneurs . However, it does require a higher minimum share capital of €25,000, half of which (€12,500) must be raised before registration.

The advantage of a GmbH is that it can protect shareholders from personal liability, should the business become insolvent. The establishment process for a GmbH is more complex than for a UG because it requires a notarized incorporation agreement and articles of association.

Similar to the UG, the GmbH is also subject to corporation tax, the solidarity surcharge, and trade tax.

Stock Company (AG)

Aktiengesellschaft (AG), or stock company, is suitable for larger corporations as it requires a minimum share capital of €50,000. The establishment process is complex and requires the formation of a management board and a supervisory board. The business also has to have a statutory auditor.

This kind of company structure is ideal for businesses seeking to raise capital through a public stock offering. While AGs are subject to the same taxation as GmbHs, they also have to comply with more regulatory controls.

Partnership Companies

Understanding the appropriate legal structure.

Choosing a legal structure for your business in Germany isn’t an arbitrary decision. It depends on a few key factors, such as your business’s nature, your comfort with liability, the capital you’ll invest, and your business expansion plans. Your choice will also vary depending on if you plan to work solo or in a partnership. It’s thus crucial to commit to ample research or seek professional legal counsel to select the best-fitting legal structure for your venture in Germany.

As a foreigner venturing into the German business world, you’ll encounter a unique set of challenges. However, a comprehensive understanding of the different legal structures and corresponding tax systems can significantly simplify the business establishment process.

Registering the Business and Getting Necessary Approvals

Business registration with the german trade office.

Any foreigner intending to start a business in Germany must initiate the process by registering with the German Trade Office (Gewerbeamt). This authority is responsible for managing the registration operations and collecting the one-time registration fee.

During the registration process, you must provide various information about your venture, such as its official name, type, and legal address. If you are a non-EU/EEA citizen, it would be required for you to obtain the necessary residency and work permits before you can register your business.

Getting a Tax ID from the Tax Office

Once your business is registered, the next step is obtaining a tax identification number (Steuernummer) from the German Tax Office (Finanzamt). While applying, you will need to specify the legal structure of your enterprise – whether it’s a sole proprietorship, partnership, or corporation. Using your tax ID, you can declare your income, VAT, and other business taxes. It could take a few weeks to receive your tax ID post-application, hence plan accordingly.

Registering with the Chamber of Commerce

Foreign entrepreneurs are also required to register their business with the local Chamber of Commerce (Industrie- und Handelskammer, IHK) or Chamber of Crafts (Handwerkskammer, HWK) if they are starting a craft business. This registration is crucial as this body provides the necessary support, seminars, and advice for new businesses.

Zoning Permissions

Depending on the nature and location of your business, you may need to obtain zoning permission. Zoning rules regulate the development of land and control the types of businesses operating in certain areas. It’s therefore crucial to ensure your business activities comply with local zoning regulations. You’ll need to contact the local municipality (Gemeinde) to find out if your planned activity is allowed in your chosen location.

Other Necessary Approvals

Complex businesses, such as manufacturing units or restaurants, might require additional approvals. For instance, a restaurant needs licenses for food safety and alcohol service. Similarly, a factory will need approvals related to environmental, fire, and safety considerations. These approvals are generally sought from respective local or federal governmental departments. Always verify the specific regulations and licensing requirements related to your specific industry.

Establishing a business in Germany as a foreign entity involves navigating through numerous administrative tasks. However, it’s not only about overcoming the bureaucratic hurdles; the success of your venture will also hinge on comprehensive market research, a robust business plan, and systematic financial planning. Moreover, enlisting the support of professionals such as lawyers, tax advisors, or business consultants, particularly those familiar with the German economy and its legal framework, is consistently recommended.

Securing Financing

Funding options for start-ups in germany.

In addition to understanding the regulatory environment, foreign entrepreneurs looking to set up shop in Germany need to explore various financing solutions that can help bring their business ideas to fruition. Numerous funding options are available, ranging from private investments and bank loans to business grants and Germany-specific state funding programs.

Private Investments

Private investments represent an attractive source of financing for most start-up entities. This form of financing may come from friends, family members, or professional investors, often referred to as angel investors. Angel investors are individuals with surplus cash and an interest in investing in upcoming start-ups. They also offer mentorship alongside capital investment. Venture capital is another form of private investment where firms pool funds from several investors to invest in businesses with high growth potential.

Germany has a robust banking system, offering various loan options to businesses. These include business loans, equipment financing, lines of credit, and real estate loans. However, as a foreigner starting a business in Germany, accessing these loans requires a comprehensive business plan, a satisfactory credit rating, and occasionally a personal guarantee or a tangible form of collateral.

Germany provides various grants specifically tailored for start-ups across different sectors. The grants often require that the business is innovative in nature, and in some cases, they may be non-repayable. Some of the popular grants include the EXIST Business Start-up Grant, High-Tech Gründerfonds (HTGF), and INVEST – Venture Capital Grant.

Government Funding Programs

Germany’s federal government offers several funding programs to boost entrepreneurship. The German Development Loan Corporation, KfW, offers loans at favorable interest rates, with specific packages designed for startups at different stages of development. The Central Innovation Programme for SMEs (ZIM) is another program aimed at fostering innovation by funding R&D projects carried out by small or medium-sized enterprises.

Building an Effective Business Plan and Pitch

Navigating these financing options often requires a strong business plan. A comprehensive business plan helps secure funding by convincing lenders and investors about the viability of your business concept. A good plan should highlight your business model, team structure, competitive analysis, sales and marketing strategy, and financial projections.

Furthermore, crafting an effective pitch is crucial in securing private investments and venture capital. The pitch should engage potential investors’ interest by demonstrating your business’s potential profitability and strategic positioning within the market. Your pitch will also need to explain your revenue model, marketing strategy, customer acquisition plan, and projected financial returns.

Overcoming Financial Challenges

Launching a business in Germany as a foreigner may come with its own unique set of challenges, financial hurdles among them. However, multiple pathways exist to navigate past these obstacles. Success in obtaining the required funding often depends on putting forward a clear, comprehensive, and persuasive business plan to prospective investors.

Hiring Employees and Labor Law

Navigating germany’s employment laws.

Once your business is ready to bring on staff, knowledge of Germany’s employment laws becomes crucial. Given its strong worker-protective stance, Germany has a comprehensive labor law system designed to safeguard employee rights while respecting employer interests. These laws include strict guidelines about minimum wage, working hours, holiday entitlement, and overall employee rights.

Recruitment Process in Germany

The recruitment process in Germany is fairly straightforward. You can either hire directly or engage recruitment agencies to do this for you. Job positions are typically advertised on job boards, company websites, print media, or through public employment services. Job applicants will then submit a detailed CV and a cover letter. Selected candidates are often interviewed and may also undergo competency tests, depending on the job requirements.

Work Visas for Foreign Employees

If you wish to hire non-European Union citizens, you must be aware of the visa requirements for these foreign employees. Germany has a specific type of visa for foreign workers, called the “EU Blue Card,” which is designed to make Germany more attractive to highly skilled workers from outside the EU.

To obtain this, the worker must secure a job in Germany, and the job must pay at least €53,600 per year, as of 2021. Alternatively, foreign graduates with a recognized degree or a comparable qualification who have a job that fits their qualifications can also be eligible for an EU Blue Card if they earn around €41,808 per year.

Enrolling Employees in Social Security

According to German law, all employees must be enrolled in social security. This enrollment is usually done by the employer at the onset of employment. The social security system in Germany covers health insurance, long-term care insurance, pension insurance, unemployment insurance, and accident insurance.

Contributions to these insurance schemes are divided evenly between the employee and the employer. It’s mandatory for these contributions to be deducted directly from the employee’s salary and paid to the respective social insurance agencies.

Starting a Business in Germany

Starting a business and hiring employees in Germany as a foreigner might seem like daunting tasks due to the strict labor laws and abundant worker protections. However, with a thorough understanding of the laws, appropriate planning, and a bit of grit, it can be a smooth and rewarding journey.

Undoubtedly, setting up a business in Germany as a foreigner is a nuanced process that requires careful planning, knowledge of the German market, and an understanding of legal and bureaucratic procedures. It’s a compelling journey that promises a rewarding professional and financial outcome with well-chosen investments and effectively executed plans.

For potential business owners who are looking to tap into Germany’s thriving market, staying informed about the country’s business environment, deciding on an appropriate business structure, navigating the registration process, securing financing, and understanding labor laws are all crucial steps in creating a successful business foothold. Embarking on this entrepreneurial journey with the right information is the first step to a prosperous future.

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How to Create a Business Plan in Germany

If you’ve already thought a lot about your business, let us help you now to sort your thoughts out.

A business model is a concise, detailed description of your business that still focuses on what is important. With the help of a „Business Model Canvas“, you can excellently lay the foundation for your business plan. You may have heard of this term before.

Here  you can download your own Business Model Canvas.

By filling out the template, this model-like representation will clearly show you what you have, what you don’t have, and what you want to achieve. It is nowhere near as detailed as a final business plan and contains almost no numbers, unlike the actual business plan, but it gives you an excellent initial overview.

The Value Proposition Canvas and the Team Inventory Canvas are also very helpful in getting a clearer picture of your vision, just from a different perspective. So, just try it out and try to fill in the templates as concretely as possible!

• Value Proposition Canvas
• Team Inventory Canvas

Watch this video  to better understand the Value Proposition Canvas!

You should be aware that an enormous amount of work and time must be invested in the creation of the business plan. If you are planning to sell a product, it is best to have tested it on the market beforehand so that you can be sure that your business will be successful. The goal here, however, is to save yourself valuable working time later on. So, if possible, be sure to test some kind of prototype of your offering in advance.

Many startups don’t tackle their business plan until it’s actually needed. You should be 100% sure what exactly your idea is and how it can be designed and successfully marketed. Only then should you worry about a business plan.

With a detailed business plan, you can then also request possible financing for your company. For potential investors such as banks, private investors, or venture capital companies, a business plan is a must for a major investment. It should therefore be clear and comprehensible.

By the way, how you can best finance your business, you will learn  in this article .

Unfortunately, start-ups often begin without a real, written business concept. This can greatly increase the risk of business failure. For already existing companies, a business plan gives direction and can also be seen or used as a management tool, among other things. The business plan is therefore first and foremost an extremely important planning tool for yourself and also certifies the potential of your idea.

Your business plan should basically contain the following:

• A clear, sensible structure
• Information about you, the founder, or the founding team
• Information about the benefits/added value of the product
• Service for the customer
• Market analysis (including competitor analysis, target group analysis).

However, this should only give a small overview. What else belongs in a detailed business plan, you can find in our  business plan checklist .

Here  is an overview of the possible structure of a business plan.

Be aware that writing down your initial business model is just a snapshot. Many things are sure to change and many new ideas will emerge along the way to your own business. Even the biggest companies in the world today look very different from what they were once planned to be! So don’t get too attached to your ideas and try to keep a record of what your company looks like and how it develops over time.

Since you want to start up in Germany, your business plan must of course (unfortunately) be written in German. However, if you don’t speak German, that’s not much of a problem these days. For that, there is our business plan template we prepared for you (and translators on the Internet) to do the work.

You can simply download the  business plan template  for free and write your information in it!

For additional information, use the free access to our community to  check out our exclusive online classes !

© 2021 establi All information is without guarantee.

How to Start a Business in Germany [Step by Step – 2024 Guide]

by Live in Germany Team | Business in Germany

Last Update: Feb 24, 2024 @ 11:03 am

🚀 Meet LiGa, our cutting-edge chat bot for all things about living in Germany! 🇩🇪 Personalized and interactive, LiGa outshines traditional searches. It’s in beta phase, and your feedback will shape LiGa into the ultimate companion for your inquiries! 🤖✨ #LiveinGermany

Being an entrepreneur in Germany

The current situation.

In a report from Global Entrepreneurship monitor worldwide in 2006 which states that Germany lacks “entrepreneurial mentality” because of low start-up rates in relation to its population size. But things in Germany started to change since then and its different now. Germany has turned out to be one of the strongest economies in the world as of now and it has also been a place of interests for start-ups quite lately.

German government’s “Digital Agenda 2020” has helped IT and E-Commerce to flourish into the economy and these sectors are playing an important role in the German Economy. Cities like Berlin and Munich have become home to many big companies from IT sector and also from other areas such as Companies that are developing modern manufacturing techniques or companies that are into AI manufacturing. On the other hand, cities like Frankfurt are becoming hub and are becoming a place of interest for finance entrepreneurs.

How to Register a business in Germany? Is it Easy?

German government has started to support entrepreneurs more now as compared to the past. Online businesses have changed the economic world and as a result a new breed of entrepreneurs have emerged. Also, in big cities in Germany many of the online business owners and entrepreneurs have been contributing and generating employment growth which is also a reason why government is supporting these entrepreneurs.

Initial Steps

First and the foremost the initiative to start a business in Germany begins with obtaining residency permit, getting the right visa, and by opening a bank account in Germany. Following this you must pay a visit to the tax office (Finanzamt). You can get yourself registered as a tradesman (Gewerbetreibender) or register yourself as a freelancer (Freiberufler). Prior to the submission at the tax office of your business registration, getting a trade license (Gewerbeschein) will be needed most of the times. An entrepreneur needs to inform the health insurance provider and may start right after that.

A major factor here is to keep up with the regulation and this is a must in any case. German laws are strict when it comes to hygiene, worker safety, working hours and accountancy. For example, if you are thinking of starting a food business, completion of certain safety courses is mandatory, and you have to make sure that all the facilities which are provided are according to the German National Standards.

How Much Would It Cost To Register a Business in Germany?

In order to accumulate what is required, two things are in consideration. Administrative expenses, in contrast, are not too much but on the other hand, the amount required to start up varies as it depends upon how much investment is required.

The actual cost of the business depends on the Business entity in Germany if you going for the Small business (Kleinunternehmer), Sole Proprietorship (Einzelunternehmer). In these two entities, seed capital is not required therefore, you can register a business for less than €50 . This is just the registration cost of the company. 

On the other hand, if you want to go for UG (mini GmbH) or GmbH then in order to register a company in Germany requires €400. Apart from that €25,000 in seed capital is needed by the investors in order to create a GmbH. But a “mini-GmbH” can be created through an initial investment of €1 and is much cheaper.

What is a GmbH

GmbH stands for “Gesellschaft mit beschrankter haftung” that is similar to a limited liability company. This is an acronym that most entrepreneurs may encounter apart from others.

Founders need to contribute €25,000 into the capital, or develop their capital with €1 to the desired amount (Mini-GmbH’s) to create a GmbH. After creating a GmbH, it must be officially notarized, which normally happens after the completion of registration process.

Link to the Topic Types of Business in Germany [Detailed Guide]

Starting a Company/Business in Germany. Can Foreigners do it?

German government is always keen to welcome foreign entrepreneurs who are interested in new ventures in Germany. But if you are willing to do so as a foreigner in Germany you need to keep some special consideration in mind before that. A list of requirements is mentioned below in order to keep and check for what is and will be required to get a start.

In order to start and grow your business in Germany as a foreigner it is very important that you must fit in to the German Culture. In order to do so, learning German language is vital, also knowing music and literature in Germany is also helpful. It is also necessary to blend in with the community that will be the home of the company and it is advised to spend some time with the people of the community and travel across the country to get a better understanding.

Step by Step Guide to Register a Business in Germany

Essentials to start a business in germany.

As mentioned before, key milestones may be similar most of the times. While steps to create a business in Germany may differ as to the nature of the business. But the usual process is mostly similar in every case. Initial Key milestones are:

• Get a business Visa: A 6 months stay will be entitled once you obtain this visa and within this time you can plan your framework of business and complete your required documentation. Proof of financial support is also required along with your staying whereabouts during this time, short-term health insurance, and or a business partner’s letter of invitation, if applicable.
• Get a Trade license: Attending a Finanzamt in your desired city is next, by doing so entrepreneurs can receive their trade license and get registered as a tradesman. €20 fee comes with this and this will specify your company’s area of work.
• Completing your business registration: Registering your business with the Finanzamt is next. Requirements for registering are: a valid visa, a German tax ID number, a functional bank account, current passport, and a residence permit. After the registration you will receive a Tax number and VAT number of your new Business in Germany.

Step 1: Registering your address to start a business in Germany (Anmeldung)

Every time you move into Germany, registering your address is necessary. This is known as Anmeldung. For the first time you register your address, you will be granted a certificate of registration (Anmeldebestatigung) and a tax ID (steueridentifikationsnummer). In order to create an ELSTER account and get your business registered, you require a registered address and a tax ID.

You need : 🔹 A place where you can live in Germany 🔹 Documents which are required for the Anmeldung

Step 2: Opening a Bank account to start a business in Germany

In order to register your business and later for tax payments you’ll require a bank account. A bank account which offers SEPA transfers is necessary and if it’s not a German bank account, don’t worry.

A separate business account is needed in order to form a corporation (UG, GmbH, AG or KGaA) as it is a requirement.

Otherwise, if you are starting as a Freiberufler or Gewerbe, needing a business account is not necessary. For that purpose, your personal bank account can also be utilized. In order to keep things easier for you it is advised to have a business account and also some banks refrain the use of personal account as a business account as per their policy.

You can take a look at my comparison of German banks if you need to open a bank account and doesn’t have one. Kontist, Holvi and Penta are some business banks which offer easier bookkeeping. I personally have an account in Kontist since past 6 months and it’s really good.

Link to the Topic Best Banks for Freelancer & Self-Employed and Businesses in Germany

Having Two Bank Accounts is always better

In order to make things easier for yourself, it is advised to have a personal account and a separate business account. By doing this you can do accounting for your business and personal transactions in a much easier way.

Finanzamt can also freeze your accounts

Your bank accounts can get freeze if you are unable to pay your taxes by the Finanzamt. The Finanzamt will not just freeze your business account but all your accounts. This also includes accounts in other EU countries. You will not be able to transfer money or also won’t be able to withdraw money from your bank accounts if they are frozen. If the accounts get freeze by mistake which can also happen, it may take a couple of days to fix and you’ll not be able to do transactions during this time.

A Pfandungsschutzkonto (P-Konto) can protect in such a scenario, as it allows you to access some money in the frozen accounts. This can make both ends meet as you can pay bills or buy food with this money. A bank account can be converted into a P-Konto for free.

You need: 🔹 A registration Certificate (Not required by some banks)

You will get: 🔸 A business account in a bank

Step 3: Finding a Tax advisor

Getting a tax advisor in Germany may be expensive, but getting a tax advisor can make you save a lot of money. A tax advisor will be able to register business for you and will be responsible for tax declarations. Having a tax advisor makes it easy to do accounting and having a tax advisor can also prevent from making expensive mistakes.

Step 4: Gewerbe or a Freiberufler?

The tax office makes this decision that if you need to register as a Trade (Gewerbe) or a freelancer (Freiberufler). This happens when your business gets registered with the tax office (Finanzamt).

This is very important to know the difference. In order to become a Tradesman getting a trade license (Gewerbeschein) is necessary and a trade tax (Gewerbesteuer) needs to be paid. Also getting listed in the trade register (Handelsregister) is must and different accounting rules have to be followed sometimes. All of this is required before getting your business registered with the Finanzamt.

Not every freelancer but specific professions like, Doctors, Engineers, Teachers and architects are considered as Freiberufler. Tour guides and food delivery persons are considered as Gewerbe and not Freiberufler. Also, commercial websites are mostly registered and considered as a Gewerbe.

Step 5: Get a Trade License (Gewerbeschein)

In order to get registered as a Gewerbe, before you get your business registered with the Finanzamt you must get a trade license (Gewerbeschein).

You can apply online for a Gewerbeschein if you are in Berlin but a valid residence permit is required prior to applying. Although paper form can be used in the rest of Germany. Also, the tax advisor may also do this for you.

You need: 🔹 Permit of residence (Aufenthaltstitel)

You will get: 🔸 A trade License (Gewerbeschein)

Step 6: Register with Finanzamt to start a business in Germany

Now you need to declare your business at the Finanzamt by filling the Fragebogen zur steuerlichen Erfassung. This has to be done online since 2021. Also, your tax advisor can register your business. Sorted has built a free tool to register your business in English if you find it hard to speak German. Likewise, Firma.de can also register your business for you.

You need: 🔹 T rade license (Gewerbeschein) – In case you register as a Gewerbe 🔹 Bank account that facilitates SEPA Transfers 🔹 Tax ID (Steueridentifikationsnummer)

You will get: 🔸 VAT number (Umsatzsteuernummer) 🔸 Tax Number (Steuernummer) 🔸 Trade register entry (Handelsregister)

Time Required: 5-7 weeks (which includes 1 week in order to create an ELSTER account)

How to Fill Fragebogen zur steuerlichen Erfassung in English

Filling out the Fragen zur Steuerlichen Erfassung could be hard as it is 7 – 8 pages document with so many fields. GetSorted is the only platform which lets you fill this form digitally in English with all the helpful info for each field. If you are a freelancer or self-employed and wanted to start your Einzelunternehmer or kleinunternehmer then GetSorted can help your with this form and also with monthly or quarterly VAT submissions.

Step 7: Getting the Right Residence Permit

In order to be self-employed in Germany, a residence permit is required. Also, it is determined by the nationality you have. This tool can help you in order to find if you need a residence permit or not.

• Citizens from countries like Iceland, Norway, Liechtenstein, and Switzerland or from European Union are already eligible to start a business in Germany.
• You can also start doing business in Germany by having German permanent residence.
• By having a work visa or blue card, you can get self-employed along with your job. Although job shall remain the main source of income and keeping the job is mandatory. If on the residence permit and on the Zusatzblatt it says Selbstandige Tatigkeit gestattet or Erwerbstattigkeit erlaubt then you can do this.
• On student visa, you need to change the residence permit by asking Auslanderbehorde to do so. After this you can study and operate a business simultaneously. A lot of students I know have done this already.
• Otherwise, applying for a German freelance visa is necessary. Clients in Germany are required to get a freelance visa and if clients are not in Germany, you may not get a freelance visa.

You can get your business registered at the Finanzamt and apply for the residence permit at same time.

You need: 🔹 T rade license (Gewerbeschein)

You will get: 🔸  P ermit of residence (Aufenthaltstitel) 🔸  Permission to get self-employed in Germany

Time required: approx. 2-3 months.

Step 8: Let your Health Insurance Company Know

Informing your health insurance provider about going freelance is advised if you have a health insurance already. As for freelancers, health insurance can turn out to be a bit expensive because the employers will not the half amount anymore for you. And if you are a freelancer, then the insurance company may deduct the money directly every month from your bank.

Also, the insurance cost will depend upon your income if you are having public health insurance. An estimated income will be used to determine the amount because the future income is not of a certain value. In case of an additional charge or a low charge, you may get a refund or an invoice later as per the amount.

It is also advised to have private health insurance if you are self-employed because it’s cheaper and covers more. It can also save you money, but talking to a health insurance broker is always a good option as the decision is not a simple one.

In Germany, your revenue (reduced through business expenses) is accounted as the basis of taxation as a sole proprietor. For more information, please visit:

Link to the Topic How Much is Cooperate Tax in Germany

Source Business vector created by pch.vector – www.freepik.com How to start a business in Germany  – All About Berlin

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• Expat Guide

How to Start a Business in Germany: A Comprehensive Guide

Starting a business in Germany can be an exciting and rewarding venture. With its robust economy, favorable business environment, and numerous opportunities, Germany attracts entrepreneurs from around the world. Whether you are a foreigner or a local resident, this guide will provide you with essential information on how to start your own business in Germany. From legal requirements and visa options to registering your company and understanding business taxes, we will cover everything you need to know to launch a successful venture in the German market.

Starting a business in Germany

German economic offers great opportunities for both local residents and foreign entrepreneurs. By understanding the legal requirements , visa options, registration processes, and business taxes , you can navigate the German business landscape with confidence. Take advantage of the country's supportive environment, robust economy, and extensive resources to turn your entrepreneurial dreams into reality. With careful planning, research, and the right professional guidance, you can successfully start and grow your business in Germany.

Germany offers a favorable environment for small businesses, providing ample support and resources to help entrepreneurs succeed. When starting a small business in Germany, it is important to understand the legal and administrative requirements. Whether you choose to operate as a sole proprietorship, a partnership, or a corporation, each legal form has its own advantages and considerations. Developing a comprehensive business plan , securing funding, and complying with necessary registrations and permits are crucial steps to consider.

Can Foreigners Start a Business/Company in Germany?

Germany welcomes foreign entrepreneurs and provides opportunities for them to establish and run businesses in the country. While there are c ertain requirements and procedures that foreigners need to follow, it is indeed possible to start a business or company in Germany as a non-German citizen.

Foreigners can navigate visa requirements for self-employment , obtain a residence permit, and establish a business presence by working with local trade offices and commercial registers. Collaborating with tax advisors ensures compliance with legal and tax regulations.

Requirements for a Visa for Self-Employment in Germany

Foreign nationals planning to start their own businesses need to understand the visa requirements for a business visa for self-employment in Germany .

The German government offers a visa specifically designed for self-employed individuals , enabling them to live and work in the country. To apply for this visa, applicants must provide the necessary documents, meet financial requirements, and demonstrate the viability and sustainability of their business concept.

Engaging with local authorities and following the visa application process is essential for obtaining legal permission to establish and operate a business in Germany. Speaking German is therefore a very valuable skill.

How to start a business in Germany as a small business owner:

To start up your own business in Germany, there are several essential steps to follow. First, determine the legal form that best suits your business goals and requirements. This could be a sole proprietorship, a business partnership, or a corporation. Next, develop a comprehensive business plan that outlines your products or services, target market, marketing strategies, and financial projections.

Once you have a solid plan in place, secure funding through personal savings, loans, or investors. Register your business with the relevant authorities, obtain the necessary permits and licenses, and open a business bank account. Consider engaging a tax advisor to ensure compliance with tax regulations and to optimize your financial strategy.

How to Register a Business in Germany

A Company Formation Checklist: Registering your business in Germany involves several key steps. Following a company formation checklist ensures a smooth and efficient process. Here are the essential tasks and legal regulations to complete the registration process:

Register your address:

When starting a business in Germany, it is crucial to provide a registered address for your enterprise. This address can either be your residential address or a rented office space.

Having a dedicated address helps establish a professional presence and ensures that official documents and correspondence reach you promptly.

Obtain a residence permit for self-employment:

For foreign nationals, obtaining a residence permit that allows self-employment in Germany is a necessary step. It is advisable to consult the German embassy or consulate in your home country to familiarize yourself with the specific requirements and procedures for obtaining the appropriate residence permit .

By securing the necessary permit, you can legally engage in self-employment and embark on your entrepreneurial journey.

Business registration: Get your Business licence:

The next important step is to acquire a business license , known as a "Gewerbeschein," from the local trade office or "Gewerbeamt." The requirement for a trade license depends on the nature of your business activities. Some professions and trades may have specific licensing requirements, while others may not require a license.

Additionally, depending on the structure and legal form of your business, you might need to register it in the commercial register . Ensuring proper registration and licensing is essential to operate your business in compliance with legal regulations.

Tax registration: Register with the tax office:

To meet your tax obligations and establish your business's legal standing, it is necessary to register your business with the tax office or "Finanzamt." Registering your business enables you to obtain a tax identification number, known as "Steuernummer."

This number is used for tax purposes and ensures that you fulfill your tax obligations correctly. Compliance with tax regulations is crucial for the financial stability and legitimacy of your business.

Open your separate business account:

Maintaining proper financial records and separating personal and business expenses is vital for effective bookkeeping and financial management. Opening a separate business German bank account is highly recommended. This dedicated account will be used exclusively for your business transactions, providing clarity and transparency in tracking income and expenses.

It also streamlines financial reporting and facilitates accurate tax filings. By having a separate bank account , you can effectively manage your finances, monitor cash flow, and ensure financial stability for your business's growth.

Tell your health insurer:

When you are employed , your health insurance premiums are automatically deducted from your salary. However, as a self-employed individual, you are responsible for making monthly payments through bank transfers. So, you have to tell your insurance company that you now work as a self-employed person. You can now decide between public and private insurance .

Health insurance for freelancers tends to be more costly since you don't have a employer that contributes to the payment.

If you have public health insurance, the cost of your coverage depends on your income. Since your future income is uncertain, an estimated income is utilized. Should you overpay for insurance, you will receive a refund at a later stage. Conversely, if your payments fall short, you will be invoiced for the remaining balance.

For self-employed individuals, private health insurance can often be a more affordable option.

How much does it cost to start a Business in Germany?

Starting a business in any country involves costs, and Germany is no exception. It is i mportant to have a clear understanding of the expenses involved to plan your finances accordingly. The cost of starting a business in Germany varies depending on several factors, such as the legal form chosen, industry-specific requirements, and initial investments. Expenses may include registration fees, legal fees, office rent, equipment purchases, and marketing costs. Conducting thorough research and creating a detailed budget will help you estimate and manage the financial aspects of starting a business in Germany.

Business administration: Types of Businesses in Germany

German economy offers various legal forms for businesses. The most common types in German law include sole proprietorship (Einzelunternehmen), business partnership (Personengesellschaft), and corporation (Kapitalgesellschaft). A sole proprietorship is the simplest and most common form, suitable for self-employed individuals.

Business partnerships involve two or more individuals sharing the responsibilities and profits of the business . A limited liability company offers protection and is ideal for larger-scale businesses. Understanding the characteristics and requirements of each legal form will help you choose the most suitable option for your business.

What is the difference between freelancer (Freiberufler) and tradesperson (Gewerbe)?

In Germany, there is a distinction between freelancers (Freiberufler) and tradespersons (Gewerbe), each with its own set of regulations and requirements. Understanding the difference between these two classifications is important when starting a business in Germany.

Freelancer:

Freelancers, or Freiberufler, refer to individuals who provide professional services in fields such as law, medicine, architecture, engineering, consulting, and artistic activities. As a freelancer, you operate in a self-employed capacity and typically do not engage in commercial trade activities . Freelancers are subject to income tax and may need to register with the tax office (Finanzamt) for tax purposes. However, they are exempt from trade tax (Gewerbesteuer), which is a benefit compared to tradespersons.

Tradesperson:

Tradespersons, or Gewerbe, are individuals engaged in commercial trade activities such as retail, manufacturing, crafts, and services that require a trade license (Gewerbeschein). Unlike freelancers, tradespersons are subject to both income tax and trade tax. They need to register their business with the local trade office (Gewerbeamt) and comply with specific regulations related to their trade or profession. Tradespersons are also required to contribute to the Chamber of Commerce (IHK) and may need to undergo a master craftsman examination for certain trades.

Why is it important to know the difference?

The distinction between freelancers and tradespersons is important because it determines the legal and tax requirements applicable to your business. If you are offering services in a field recognized as a freelance profession, you can operate as a freelancer and enjoy certain tax advantages.

On the other hand, if your business involves commercial trade activities, you will be classified as a tradesperson and need to fulfill additional obligations, such as obtaining a trade license and paying trade tax.

When starting your business in Germany, it is crucial to determine whether your activities fall under the freelancer or tradesperson category. Consulting with legal and tax professionals or contacting the relevant authorities can provide you with clarity regarding your specific business classification.

By understanding the difference between freelancers and tradespersons, you can ensure compliance with the appropriate regulations and set yourself up for a successful business venture in Germany.

What taxes do I have to pay as a business owner: An overview of Business Tax in Germany

Understanding business taxes and tax payments is crucial for running a successful business in Germany. Here is an overview of the main types of business taxes:

Income tax for the self-employed:

Self-employed individuals are subject to income tax (Einkommensteuer) based on their profits. The tax rates depend on the individual's income level.

Trade tax for the self-employed:

A a self-employed person you have to pay trade tax (Gewerbesteuer). This tax is levied on commercial activities and varies depending on the municipality where the business is located.

VAT tax for the self-employed:

Value-added tax (Umsatzsteuer) is charged on the sale of goods and services. Businesses are required to collect and remit VAT to the tax authorities.

Church tax:

If you are a member of a catholic or protestant church in Germany you would also have to pay church tax.

It might help you to get a tax advisor that helps you with all you tax purposes for business owners. Partnering with a tax advisor can help to get all tax-related responsibilities in order, ensure compliance, and optimize your business's financial performance. Their expertise and guidance can give you peace of mind, allowing you to focus on core business activities while knowing that your tax affairs are in capable hands.

Whats insurances are important for Business Owners in Germany?

As a business owner in Germany, it is important to consider insurance coverage to protect your business and mitigate potential risks . Mandatory insurances may include liability insurance (Haftpflichtversicherung) and health insurance (Krankenversicherung). Additional insurances such as property insurance, professional liability insurance, and business interruption insurance can provide further security and peace of mind.

Health Insurance for Business Owners in Germany

Health insurance is an essential aspect for business owners in Germany, ensuring access to quality healthcare and providing financial protection in case of medical emergencies. As a self-employed person, you have the option to choose between public health insurance (gesetzliche Krankenversicherung) and private health insurance (private Krankenversicherung). While public health insurance is the default option for most individuals in Germany, self-employed individuals often opt for private health insurance due to its flexibility and additional benefits.

Benefits of Private Health Insurance for Self-Employed Persons:

• Flexibility: Private health insurance offers a wider range of coverage options, allowing you to customize your plan according to your individual requirements and preferences .
• Faster Access to Healthcare: Private health insurance often provides quicker access to specialists, diagnostic tests, and medical treatments, reducing waiting times for consultations and procedures.
• Choice of Doctors and Hospitals: With private health insurance, you have the freedom to choose your preferred doctors, hospitals, and healthcare providers , giving you more control over your healthcare decisions.
• Additional Services: Private health insurance plans often include additional services such as dental coverage , alternative medicine, and access to wellness programs, enhancing your overall healthcare experience.

Considerations When Choosing Private Health Insurance:

Before opting for private health insurance, consider the following factors:

Affordability:

Private health insurance premiums are typically based on your age, health condition, and desired coverage. It's important to assess the long-term affordability of the premiums, taking into account potential premium increases as you age.

Comprehensive Coverage:

Ensure that the private health insurance plan you choose provides adequate coverage for your healthcare needs, including hospitalization , medications, and specialized treatments.

Pre-existing Conditions:

Private health insurers may impose exclusions or waiting periods for pre-existing conditions. Carefully review the terms and conditions to understand how pre-existing conditions are covered.

Future Changes:

If you decide to switch from private health insurance to public health insurance in the future, it may not be possible or could involve certain restrictions. Consider your long-term plans and potential changes in income or employment status.

Expert Advice:

Consulting with an insurance broker or a health insurance specialist can help you navigate the complexities of private health insurance and make an informed decision based on your specific circumstances.

In conclusion, health insurance is a crucial consideration for self-employed business owners in Germany. While public health insurance is the default option, private health insurance provides additional benefits and flexibility for self-employed individuals . Consider your healthcare needs, budget, and long-term plans when choosing between public and private health insurance. Consulting with insurance professionals can provide valuable guidance to help you make the right decision and ensure adequate coverage for your health and well-being as a business owner in Germany.

Disclaimer: The information in this article is for general informational purposes only and does not constitute legal advice. For specific questions and concerns regarding your individual situation, consult with the appropriate authorities or legal professionals.

Marie-Theres is online editor for health and insurance topics at ottonova. She researches and writes mainly about private health insurance, (e-)health and digital innovation that make life better.

Our ottonova team of experts has over 40 years of experience in private health insurance and answers questions about it every day. What are old-age provisions and for whom does private health insurance make sense? What is the actuarial interest rate and which tariff is right for you? They know!

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In Germany, the private health insurance income threshold for employees working in Germany is set by the Federal Ministry of Labour and Social Affairs (BMAS).

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• Innovation and Technology

How to set up a new business as an expat in Germany

There are many opportunities for startups in Germany. A few tips that will help you achieve success. 

Find a space for your ideas  

For years, Berlin has also been regarded as Germany’s startup capital. Every year, more than 500 new businesses are launched there. However, cities in the Ruhr region, such as Essen or Dortmund, repeatedly top the German rankings because renting office space for example is cheaper there.  

You should consider both the “what” and the “where” together, in other words: For instance, the green tech and automotive sectors are more likely to be found in southern cities like Freiburg and Karlsruhe. Startups in the areas of health and IT are currently enjoying success all over Germany. The social entrepreneur scene is also seeing strong growth nationwide because there can never be enough good ideas when it comes to combating the climate crisis or fostering equal opportunities.

Check your financing  

There are numerous funding programmes in Germany that are financed by the federal or state governments. Funding is available for innovative ideas in particular: With its Future Fund, the German government is making ten billion euros available at the KfW bank until 2030. 

You can also find a guide to financing and funding programmes at Make it in Germany . But no matter whether you are looking to secure a loan or venture capital: One absolute must is a carefully drawn up business plan that will serve as the basis for your funding. You can use for example the Gründerplattform to help you write your business plan.

Taking advantage of the free advice on offer  

You won’t need a startup coach to do that: You can discover how best to track down a tax advisor or your local Chamber of Industry and Commerce at the business startup portal of the Economics Ministry . Advice for expats is also on offer there .  

When looking for appropriate advice, always ask yourself what sets you and your idea apart. It also makes sense to seek information from the professional associations in your sector. Services are also available specifically for female entrepreneurs, for example at the National Agency for Women Startups Activities and Services .

Networking helps!  

As an entrepreneur you should definitely talk to others. As well as using the international platform LinkedIn, many people in Germany network via the professional platform Xing. Offline, you will also find industry associations or special interest groups helpful, as they offer networking events. Another great networking tip is to use co-working spaces , which can be found all over big cities but also in rural areas.  

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How to start up your own business in Germany

For anyone who wants to become an entrepreneur , Germany can be a great location for starting a new business. This is attested to by the large number of small and medium-sized enterprises (SMEs) that form the backbone of the German economy. There are, however, a few administrative issues that need to be taken care of before you can officially become your own boss.

Point of Single Contact ( Einheitlicher Ansprechpartner )

The first port of call for any expat wishing to start a business in Germany should be your local Point of Single Contact ( Einheitlicher Ansprechpartner - EA) . Since 2009, every federal state ( Bundesland ) in Germany has had an EA to assist freelancers, start-ups and new businesses.

As well as offering general advice and guidance, the English-speaking staff at the EA can personally advise you on how to start a business in Germany, including helping you with forms and documents, and forwarding them on to the relevant administrative bodies. The EA will be able to assist you with many of the processes described below.

A growing number of private services can also offer you advice on company formation in Germany .

Residence permit for self-employment in Germany

Before you can start a business in Germany, you must first ensure that you are allowed to stay there long-term. Under EU law, citizens of the EU, EEA or Switzerland are able to live and work freely in Germany, including undertaking self-employed activity.

Nationals of other countries will need to apply for a residence permit for the purpose of self-employment before they can start a business in Germany. In order to qualify for this type of temporary residence permit , you will need to demonstrate that your business serves a German economic interest and that you have the funds to realise your idea. You will be expected to submit a business plan outlining these points.

German definition of freelancers ( Freiberufler ) & tradespersons ( Gewerbetreibenden )

German law makes a distinction between a freelancer ( Freiberufler ) and a tradesperson ( Gewerbetreibende ). Understanding this legal distinction is important for anyone considering starting their own business, as freelancers are not required to register their business with the trade office or pay trade tax.

In Germany, a freelancer is someone with specific qualifications who independently sells their services. The definition is limited to certain types of professions. You can see a list of freelance professions here (in German)  and in the corresponding law,  § 18 EStG . Anyone else is considered a tradesperson. Generally, freelancers operate under their own name, rather than a business name.

If you are unsure whether you qualify as a freelancer or a tradesperson, check with your local tax office ( Finanzamt ) , who will be able to advise you.

The following sections outline the process of registering yourself as self-employed in a trade occupation ( Gewerbe ). For details on how to register yourself as a freelancer, visit our Going freelance page .

Applying for a licence ( Erlaubnis )

Some trades and professions in Germany are protected, and therefore you are required to take some extra steps before you can register your business and commence trading.

Trades requiring a licence in Germany

Some professions, such as insurance advisors, construction supervisors and property developers, can only be practised in Germany on a self-employed basis with a licence ( Erlaubnis ). See here for a list of trades requiring a licence (in German) .

You can apply for this licence at your local trade office ( Gewerbeamt ) by submitting a form. This can usually be done online, but it would be wise to attend in person if you have any queries. You will be required to submit some or all of the following:

• CRB check ( polizeiliches Führungszeugnis )
• Proof of vocational qualifications (officially recognised, if foreign (see below))
• Extract from the commercial register
• Certificate of non-objection ( Unbedenklichkeitsbescheinigung ) from the tax office and town hall
• SCHUFA credit report

If you are unsure whether you need a licence to practise your profession, you can consult with your local trade office or branch of the Chamber of Industry and Commerce (Industrie- und Handelskammer - IHK) .

Skilled trades in Germany

Skilled trades ( Handwerke ) are also protected in Germany and anybody wishing to practice a trade or craft profession must be entered into the Register of Qualified Craftsmen ( Handwerksrolle ) before being allowed to commence commercial operations. Being entered into the register also means that you are liable to pay regular subscription fees.

Note that the definition of skilled trade in Germany is quite broad and covers the following industries:

• Electrical-, metal- and woodwork
• Building & finishing
• Health & personal care
• Glass, paper and ceramic work
• Clothing, textiles and leather

To be entered into the register, you must submit an “Application for Registration in the Register of Qualified Craftsmen” ( Antrag auf Eintragung in die Handwerksrolle ) at the competent Chamber of Trade (Handwerkskammer - HWK) in your area.

There are 53 skilled trades (Handwerke) that can only be practised with specific qualifications . Only those with the correct vocational qualification, or a recognised foreign equivalent (see recognition of foreign qualifications, below) can be entered into the register and permitted to practise these occupations. To practise other skilled trades you do not need specific qualifications, but you still need to be entered into the register.

If you are unsure if your profession is classified as a skilled trade, consult with your local HWK, who will be able to advise you.  

Recognition of non-German qualifications

Some professions, such as insurance advisers, security guards and taxi drivers, are regulated in Germany. This means that these professions may only be practised by non-Germans who have equivalent foreign qualifications.

If you wish to run a business in one of these professions, you must apply to the responsible authority to have your foreign qualification officially recognised. Your local competent authority can advise you about this process.   

Selecting a legal form for your German business

Once you have taken these initial steps to ensure the viability of your business venture in Germany, you need to choose a legal form for your business . Which structure you choose depends on a number of factors, including:

• How many people are starting the business
• Who will lead the business
• How much equity you have
• Whether your personal liability should be limited

Choosing the right structure is essential, as it will affect your business taxes and your personal debt liability in future.

Entering the commercial register ( Handelsregister )

Once you have decided which legal form is best suited to your new business, you can enter your business in the German commercial register ( Handelsregister ). Almost all businesses must do this in order to receive a commercial register number ( Handelsregisternummer ), which you will need to register your business at the local trade office and receive a business licence ( Gewerbeschein - see below).

Small businesses and the commercial register

The only exceptions to this are freelancers and small businesses ( Kleinunternehmen ). Small businesses are defined as businesses with a revenue of less than 22.000 euros in their first year of operation and a revenue of less than 50.000 euros in the following years.

If you are a small business owner or a freelancer you can voluntarily enter your business in the commercial register, but note that this comes with additional rights and obligations. For small businesses, it is not usually worth the extra cost. A lawyer can advise you if you are unsure.

How to register in the Handelsregister

Larger businesses, especially OHGs , KGs , GmbHs , UGs  and AGs  must enter the German commercial register. The application is electronically filed in a publicly-certified form by a notary. The cost of registration varies according to the company’s legal form, anywhere from 200 euros for a sole proprietorship to 500 euros for an AG.

Registering at the German trade office ( Gewerbeamt )

Once you have your Handelsregisternummer and any licences or permits you might require, you can pay a visit to your local trade office ( Gewerbeamt ) to register your business. The competent trade office is the one in the area where you will open your business. You can find your local office on the Federal Ministry for Economic Affairs and Energy’s website . Select “ Gewerbeämter ” (trade offices) and enter your postcode ( PLZ ) or location ( Ort ).

To register your business, you will need:

• Valid ID, such as a passport or identity card (not a driving licence )
• Registration certificate ( Meldebescheinigung )
• Visa or residence permit enabling you to carry out self-employed activity
• Handeslregisternummer (if applicable)
• Proof of your qualifications and any permits or licences, as required
• Registration fee (usually no more than 70 euros)

Once you have registered your business, information about your registration will automatically be forwarded on to the tax office ( Finanzamt ), the local Employers’ Liability Insurance Association ( Berufsgenossenschaft ) and, depending on the type of business you register, possibly the District Court ( Amtsgericht ) as well.

Registering with the German tax office

Shortly after you have registered your business with the trade office, you will receive communication from your local tax office, usually asking you to fill out a form called “ Fragenbogen zur steuerlichen Erfassung ” (Questionnaire for Taxation). Alternatively, to speed up the process, you can download  a form to fill out, or submit it via ELSTER . The form is only available in German; if you are unsure about anything, it would be wise to consult with a tax advisor rather than risk a delay by entering information incorrectly. You will need to submit the following details:

• Description of your business activity
• Details of your German bank accounts (both personal and business, if you have one)
• Estimated profit and expenses
• Estimated revenue
• Registrations with Chamber of Industry and Commerce or Chamber of Crafts
• Registration in Commercial Register
• Whether you wish to charge VAT (see below)

Once you have completed this form and sent it back, you will receive your tax number (a unique identifier for you as a business, different from your Tax ID) and your VAT number. You will need both of these numbers before you can start sending invoices and charging VAT.   

Business tax in Germany

On the basis of the estimations you provide in your form, the tax office will send you a schedule for tax payments. Businesses and tradespeople in Germany are liable to pay several different kinds of business taxes, depending on their annual turnover and their legal form. You can learn more about  business taxes in Germany here . 

German business administration

In Germany, businesses are legally obliged to keep financial and administrative records for 10 years. If the authorities suspect you have been paying tax incorrectly, you may be asked for records reaching back beyond 10 years. This includes:

• Bank statements
• Contracts (e.g. employment contracts or with providers of internet  or phone line )

Double-entry bookkeeping

While single-person businesses and partnerships are relatively free to choose how to manage their accounts, corporations in Germany are obligated by law to use double-entry bookkeeping.

Formatting invoices in Germany

You must make sure that any invoice you issue contains the following information:

• Your company’s full name and address
• The recipient’s full name and address
• Invoice date
• Your tax number and VAT number
• Invoice number (assigned by you to help you identify in future)
• Description of goods or service provided
• Time of delivery
• VAT / USt (if applicable)
• Payment deadline

Bank accounts for businesses

You will also need to open a business bank account, to keep your business assets separate from your personal ones (this does not apply to freelancers). Having a separate business account also makes business administration much smoother and will save you a lot of time. There are several different banks in Germany that offer business accounts for entrepreneurs, such as  Commerzbank and  Finom . 

Personal insurance and pensions for self-employed workers in Germany

Becoming self-employed in Germany means that social security contributions are not automatically deducted from your salary. You will, therefore, need to take some steps to make sure you are covered by all the mandatory types of insurance.

Self-employed workers & Pensions

Generally, as a self-employed worker, you can continue making voluntary contributions to the German statutory pension scheme . Certain groups of self-employed persons are legally obliged to contribute. This applies to workers in the following professions:

• Craftspeople and home tradespeople
• Teachers and educators
• Nursing staff and midwives
• Artists and publicists
• Self-employed people with one client
• Sea pilots, boat drivers and fisherpeople

If you do not fit into one of these categories, you can still make voluntary contributions to the state pension plan by informing your pension fund of your decision to become voluntarily insured. Voluntary insurance is fairly flexible, allowing you to specify the exact level of your contributions. The contribution rate is currently 18,6 percent, or a minimum contribution of 96,72 euros per month to a maximum of 1.357,80 euros per month. You can freely choose any amount to contribute from the minimum to the maximum contribution. 

Usually, you will have to cover the entire contribution yourself. An exception is those working in artistic professions, who can apply to have 50% of their contributions covered by the Künstlersozialkasse (KSK) . Within the first three calendar years after you became self-employed, you may be eligible to have your contributions reduced by 50%. Speak to your local branch of the Deutsche Rentenversicherung to see if you qualify for this reduction.

Alternatively, you can choose to take out a private pension plan, known as a Rürup pension, which allows you to decide exactly how much you wish to contribute. These contributions are also deductible for tax purposes.

Self-employed workers' health insurance

Self-employed workers do not have to contribute to statutory health insurance ( gesetzliche Krankenversicherung ) . However, having health insurance is compulsory in Germany, so you need to make sure you are covered by a scheme. You can voluntarily contribute to a statutory health insurance scheme, which will automatically entitle you to  sickness benefit  and  long-term care , as well as providing cover for your dependent family members . Bear in mind, however, that you will have to pay the entire contribution (14,6% of your income up to a maximum income threshold) yourself. 

For many self-employed workers, therefore, taking out private health insurance  can work out cheaper. If you opt for this, make sure you are covered in the event of sickness and / or old age. 

Unemployment insurance for self-employed workers

To guard against unemployment in future, and be entitled to unemployment benefit , as a self-employed worker you also have the option to make voluntary contributions to unemployment insurance.

Occupational accident insurance

You can choose to take out voluntary accident insurance for yourself (and your spouse, if they work with you). If you have any employees, you will be obliged to make contributions to the scheme on their behalf.

Professional insurance for self-employed workers

In addition to personal insurance , self-employed workers often choose to take out professional insurance to guard against risks that might damage their business. An insurance advisor can help you decide which types of insurance might be necessary for your business. This might include:

Liability insurance

To protect against any damage claims, lots of business owners choose to take out liability insurance .

Legal expenses insurance

To cover legal expenses should you ever need to go to court.

Loss of profits insurance

To cover lost income incurred as a result of having to temporarily close your business.

Property insurance

To protect your buildings, equipment, goods and machinery.

Machinery breakdown insurance

To finance any necessary repairs.

Computer insurance

To cover any damage caused by power cuts or viruses, including those resulting in a loss of data.

Goods transport insurance

To protect your goods while in transit.

Credit insurance

To cover unpaid invoices.

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Company formation in Germany

Becoming an entrepreneur in Germany

Start-up grants & Financial incentives for businesses in Germany

Business taxes in Germany

Business structures in Germany (Rechtsformen)

Going freelance in Germany

Coworking, office spaces & workspaces in Germany

50 Best Business ideas in Germany You Can Start Today

By: Author Tony Martins Ajaero

Home » Europe

Do you want to start a business in Germany? If YES, here are 50 small business ideas and investment opportunities in Germany to start with no money.

Okay, having provided a detailed analysis of the legal requirements, market feasibility and every other thing it takes to start a business in Germany and a series of industry-specific sample business plan templates; here is an in-depth analysis of the top 50 best small business ideas in Germany. So put on your entrepreneurial hat and let’s proceed.

Best Small Business ideas in Germany

Biotechnology business.

Germany is aggressively promoting and developing its biotechnology industry. The government has spent hundreds of millions of dollars on infrastructure, fund research, development, and recruitment of top international scientists. Though, breaking into this industry requires solid background knowledge and a huge capital.

Fast Food eateries

Fast foods and snacks sell very well in Germany. This means investors can really make lots of profit from businesses that sell snacks such as barbecue, pizza, and so on. This business requires little capital and no formal academic certifications. So, it’s one you can easy venture into.

Transportation Business

Transportation is one of the necessities that are almost indispensable in every economy, and this is why the demand for transport services is high almost everywhere. As a foreign investor in Germany, you can start a transport business, the scope of which hinges on your capital.

If you have little capital, start a taxi service that transports people within local routes. As time goes, you can start an inter-city or inter-state transport service.

Food Business

Food business is probably the best business to start not just in Germany, but all over the world. This is because there is a universal need for food, and it is the most important basic need of man. So if you are thinking about venturing into the business opportunities in Germany, food business is one of the most notable.

Car Manufacturing and Retailing

The car manufacturing industry is the largest in Germany’s manufacturing sector, accounting for a larger chunk of the total industrial output.

This high production rate notwithstanding, there are huge opportunities for businesses that sell electronic products to consumers. With a little capital, you can focus on a narrow range of car manufacture, but this could be wider depending on your capital.

Online Marketing and Advertising

With increasing need by businesses to attract customers and sell their offers via the internet comes the booming demand for professionals and businesses that offer online marketing services. These services range from copywriting to search engine optimization.

If you are a seasoned copywriter, or a website designer and developer, or a search engine optimization specialist, or a social media marketing expert etc.

Freelance Writing

With the increase in number of individuals and businesses that have adopted blogging as a way of making money online comes the escalating demand for creative ghost writers. So, freelancing is one of the business opportunities in Germany.

Laundry and Dry Cleaning

Most Germans especially in this era are just too busy to handle their laundry themselves. So, they would rather pay to get this done for them. If you are looking to start a small-scale business in Germany, consider this option.

Financial Services

Because there are many businesses, both indigenous and foreign in Germany, there is high demand for individuals that offer professional financial services such as accounting, auditing, and bookkeeping. If you have a solid background in any of these services, you can make a lot of money in Germany by helping other businesses with the skills you have on offer.

Auto Spare Part sales

Cars and other automobiles sell very well in Germany. And foreigners can easily break into the business. But capital remains the main issue, as the business requires huge capital. However, if you are having little capital, you can start a business that sells auto spare parts instead. They sell well, too.

Appliances Repairing

Individuals who need to have their appliances or furniture repaired can save costs. Hence, a repair service business can be a good business option. In any economy, whether good or bad, people will always have things to fix as fixing an item cost less than buying a brand new one.

Janitorial and Cleaning business

Running a small business that provides residential upkeep can be a good business. Commercial establishments that need to keep their premises clean can also be regular clients. You can provide housecleaning services , office cleaning services, foreclosure house cleaning, roof cleaning, etc.

Home Tutoring

Heads of families in Germany prefer to arrange for home tutoring for their kids, making it a good business option. You can even choose to teach English language or other subjects which are very high in demand.

Elder Care Business

Providing quality care for the elderly, like preparing meals, running errands or housekeeping, can be lucrative business, especially in households with busy working professionals. Due to the fact that many persons are busy with different tasks, you can take this up.

Fitness Trainer

More and more people are realizing the importance of having a fit body. A fitness trainer can get his share of clients. Products that enhance health may likewise have huge demand.

Eco Friendly Product retailing

Distributing eco-friendly products online such as light bulbs and recycled items may be a great business move. Just be sure to keep your site navigation-friendly and updated with fresh articles.

Telecommunication business

Germany is one of the major telecom hubs in Europe.  Be it mobile phone connections or providing internet services, there is a whole market that has been left untapped by existing telecommunications players. Although the existence of private players is very prominent, facilities such as radio and television stations are all government-owned bodies.

Fashion Retailing

Germans are a very fashionable bunch of people. They love keeping up with the latest trends and looking their best at all times. It’s therefore easy for anyone who is into fashion to break even in the country.

Professional Course Training

This is an up-and-coming industry in the world of business in Germany. It offers a lot of opportunities for professionals to be certified. You could consider setting up business in this sector that provides accredited courses in travel and tourism, hospitality, fashion designing, business administration, science and research and so on.

Information Technology Services

Many globally-renowned IT firms have already set up businesses in Germany owing to the growing potential and skilled labour available in this arena.

You could set up a business that provides a variety of IT services such as wireless networks, or web development, social networking, website designing or other businesses depending on your interest. Cyber laws here are well-equipped to regulate the internet and are updated on a regular basis.

Hospitality Business

Any destination that has a booming tourism industry will most definitely have a growing hospitality industry. This includes small-time bars and cafes to large multinational chains of hotels and resorts to the food and beverage industry here. You could make hay while the sun shines and invest in this sector.

Travel and Tourism Business

The travel and tourism industry is one of the contributors to the German economy. You might want to think about tapping potential domestic and international tourists by setting up your own travel agency or an airline that would cater to their every need and make their visit a memorable one.

Career Coaching

Want to help and inspire people for a living? Starting a career coaching practice could be the key to doing what you love and making a difference. Through career coaching you can work with clients of all ages, from young people who don’t know what career path to pursue or how to land their dream job, to older people looking for a career change.

Online Retail Consultant

If you’re knowledgeable about popular selling platforms like Amazon and eBay, you can help other people turn their online businesses into successes. Help sellers set up and improve their stores, advise them on product photo best practices and how to write better product descriptions.

You can also show clients how to use social media to promote their shops and how to get their products featured in publications to help them boost sales.

Upcycling Services

As an artist or anyone interested in crafts, try turning items that would otherwise be thrown out into useful products and selling them at craft fairs or on a website like Etsy. You can also offer to turn other people’s unwanted items into up cycled projects, like refreshing outdated clothes to make them more stylish and trendy, etc.

You don’t have to be a big-box retailer to start an online store. Whether you sell directly to consumers or use a drop-shipping service, all you need is a website and the right e-commerce software to get started. You can sell your own products or items from niche suppliers. Alternatively, if you’re crafty, you can also sell your own handcrafted creations on online marketplaces.

Event Planner

Do you love throwing parties and organizing meetings ? Start an event-planning business and turn your passion into a profitable small business. Everyone needs event planners, from individuals to organizations and corporations. Though as an event planner, you will need to be resourceful and have a keen eye for detail

Homed Based Restaurant

If baking or cooking is what you love doing, consider launching a home-based bakery , personal chef or catering business . You can whip up your concoctions for individuals, events, and local businesses and organizations. Keep in mind that home-based food businesses are heavily regulated, so start by figuring out the rules and regulations in your area.

Daycare Services

In most places in Germany, you don’t need a license to run a babysitting service from home if you keep your child headcount below a certain number. With more parents needing to work, offering a home-based child care situation can be a great way to start a business and stay home with your own kids, too.

Errand Services

In some ways, the recession has made people busier than ever. Between working long hours, cooking more at home and juggling responsibilities, there’s a lot that gets left undone. A service that runs errands (including dropping off dry cleaning, paying bills, etc.) requires just a car and cell phone. Start small, do a good job and word of mouth will spread quickly.

If you are good at solving issues or if people always come to you for help on certain areas. Well may be it could be time to offer your services to people out there at a fee. Businesses need consultants who can help them realize their mission and visions.

Individuals want help with the problems in their lives. People are willing to pay you if you can help them stay focused and work their way towards achieving their goals.

: If you are good at a particular subject or area, you can also teach others at a fee. Thus it could be students, business people or employees. You stand a good chance of making money with this business idea anywhere in the world, especially Germany.

Government Contractor

Many youth and women have won tenders worth millions of shillings to supply stationery, grade roads, offer services such as cleaning or repairs and many others. You can also come together in groups with complementary skills to increase your chances of being awarded.

Cake making/decorating

People, clubs, organisations, clique of friends etc. are usually in need of cakes especially for special occasions and events. The making/decoration of cakes is indeed the business for this period. As a family, with members who are very good in this type of business, you can set up a cake making business that will be operated by members of the family.

Though it sounds strange, but it’s a business that a family can venture into. There’s great potential to earn extra money from looking after kids, but you’ll need to adore children (not just your own), have boundless energy and patience and in many cases must satisfy some criteria.

Computer repair/troubleshooting

In this century, many persons are mostly in need of repairs/troubleshooting for their computers/laptops. A family understanding this need can set up a computer repair/troubleshooting centre. This service and many more can be offered to many people who still find computers complicated to maintain and terrifying if they go wrong.

Dog grooming

Dog grooming refers to both the hygienic care and cleaning of a dog, as well as a process by which a dog’s physical appearance is enhanced for showing or other types of competition. This is a very vital part of the healthiness and wellbeing of a dog which increases its lifespan.

Veterinary care

This career idea is hinged on the basis of prevention, diagnosis and treatment of disease, disorder and injury in non-human animals. The scope of veterinary medicine is wide, covering all animal species, both domesticated, and wild, with a wide range of conditions which can affect different species especially the pets.

Dog Walking

This is both a pastime and a profession involving the act of a person walking with a dog, typically from the dog’s residence and then returning. This constitutes part of the daily exercise regime needed to keep a dog healthy. It also provides exercise and companionship for the walker.

Pet Groomer

This is an evolving career idea in the pet industry, which ensures that its practitioners and professionals groom pets especially dogs on their day-day lives and activities. This involves teaching the pet all that it is supposed to know from eating, drinking, playing, socialising etc.

Pet Care Blogger

In this era of computer age and technological developments. Many pet owners are in constant need of information, guidance and training on how best they can take good care of their pets.

Pet Insurance Career

Pet insurance pays, partly or in total, for veterinary treatment of the insured person’s ill or injured pet. Some policies will pay out when the pet dies, or if the pet is lost or stolen. As veterinary medicine is increasingly employing expensive medical techniques and drugs, and owners have higher expectations for their pets’ healthcare and standard of living than previously, the market for pet insurance has increased

Legal Services

As a lawyer, if you are looking towards looking having a career in any country, then one of your best options is Germany as you can specialize in any field and you will thrive there.

Online trading

The world today is a global village, and it is now easy to trade online (i.e. buying and selling). A family can venture into this type of business and trade their stocks on offer to people on an online platform. Sites such as eBay and Amazon make it easy for people to dabble in e-commerce.

If you start to sell other goods, focus on things you can get hold of easily, or are passionate about. And have an eye on the Christmas market: think about what will be selling well in a few months’ time. This is also a business idea for families to dabble into.

Aquaculture

Delving into the fish farming business means that you must have knowledge about the business. While you might want to ask why it is important, this is so because you do not want to come across as a dullard who is in business. You can start out by carrying out a thorough research on the internet.

Film Production Business

Every day blockbuster movies are being churned out and those who are the helms of affair when it comes to film production are doing all they can to see that great movies are produced. You too can join the bandwagon when you start a film production business. You do not need any qualification to join the train.

Internet Radio Business

If you are interested in going into the internet radio business, then you should be conversant with the fact that it is a different kettle of fish from the traditional radio business – especially as the source for your internet radio business is a computer.

Before starting this business, you should know what topics you would need to discuss to appeal to your target market, and what kinds of business you would be concentrating on.

Graphic Design Business

If you are arts inclines and are looking for an arts related business to start, then you can look into the graphics design business. One of the good things about this business is that you can acquire the skills that is involved from the scratch and then expand on what you have learnt

Grocery Store Business

Groceries are amongst the basic things that Americans cannot do without. Therefore, starting a business in this line would be the right step in the right direction. Good news is that starting this business isn’t a herculean task. What is more, you can be sure to get good returns on your investment.

Gym Business

Fitness has always been a source of concern to Americans. This is because of the high rate of cancer that continues to ravage people. If you are a fitness and health enthusiast, then you can look towards starting a gym related business. You will need to have enough finance to equip your gym center.

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• 50 Best Business Investment Opportunities in Sweden

Business Insights

Starting a business in germany: benefits and challenges, april 24, 2023.

The benefits of starting a business in Germany

Starting a business in Germany can offer many benefits. Here are some of them.

Stable legal environment

Germany offers a favorable business environment with a transparent legal system, low corruption, and regulatory certainty. It has a strong culture of entrepreneurship with support services for new businesses. You can also learn German from expert teachers through online courses even as a beginner.

Skilled workforce

The German workforce has gained recognition for its exceptional dedication to work, technical prowess, and competency across diverse industries. This presents an excellent chance for companies to leverage a pool of highly skilled workers and select the top-performing workforce accessible in the market.

Furthermore, the focus of Germany on vocational training and education ensures that the workforce is well-prepared with the essential skills and knowledge to excel in the current global economy.

Infrastructure

Germany boasts a well-developed infrastructure, including modern transportation networks, advanced telecommunications, and efficient logistics. This enables businesses to efficiently operate and distribute their products both within Germany and across international borders.

Diverse market

Germany has a sizable middle class and robust demand for goods and services, creating ample opportunities for businesses to cater to diverse consumer segments and niches. The geographical positioning of Germany enables access to other markets within the European continent.

Challenges of starting a business in Germany

While Germany offers many benefits for starting a business, there are also some potential challenges and disadvantages to consider. These can include.

High living standards and labor costs

Entrepreneurs that consider starting a business in Germany should be mindful of potentially higher costs associated with certain major cities like Berlin and Munich. 

Factors such as the cost of living, office space rent, and labor expenses may be relatively higher compared to other European countries, presenting potential challenges for aspiring business owners in these regions. This can make it expensive to establish and operate a business in these areas, impacting the overall financial feasibility of a startup venture.

Complex regulations and bureaucracy

Navigating the complex and bureaucratic business environment in Germany, particularly for newcomers to the country, can pose challenges for starting a new business. 

The process of registering the business, obtaining necessary permits and licenses, and ensuring compliance with regulations may demand considerable time and effort. This can be a limitation that entrepreneurs need to consider when starting a business in Germany.

Language barrier

While many Germans speak English, the official language for business and legal matters is German. This language barrier can pose challenges for entrepreneurs who are not proficient in German, especially in dealing with legal, tax, and administrative matters, and communicating with local customers and partners.

Entrepreneurs should be conscious of the relatively high tax burden in Germany, especially for businesses. Corporate income tax rates , as well as additional taxes and fees like value-added tax (VAT) and social security contributions, can impact the financial viability and profitability of a business in the country.

Market saturation and competition

Useful tips.

If you’re considering launching a business venture in Germany, it’s wise to keep in mind these valuable tips.

Research the market

Conduct thorough market research to understand the demand, competition, and cultural nuances of the target market in Germany. This will help you tailor your business strategy and offerings accordingly.

Develop a business plan

Develop a comprehensive business plan that encompasses your objectives, financial projections, and marketing strategies. This will serve as a roadmap for your business and help you secure financing or partnerships.

Seek professional assistance

Consider working with local professionals such as lawyers, accountants, or business consultants who are familiar with the German regulatory environment. They can provide valuable guidance and help you navigate the bureaucratic processes involved in starting a business in Germany.

Understand the tax system

Familiarize yourself with the complexities of the German tax system, which encompasses elements such as corporate income tax, value-added tax (VAT), and social security contributions. If it’s needed, seek professional advice on tax planning and compliance to avoid any surprises down the road.

Learn the language

Build a strong network.

Networking is crucial in German business culture. Attend industry events, join business associations, and build relationships with local contacts and partners. This can help you access business opportunities and gain insights into the local market.

Stay compliant with all legal requirements

Germany has strict regulations for businesses, including licensing, permits, and labor laws. Make sure to stay compliant with all legal requirements and seek professional advice when needed.

Starting a business in Germany offers many benefits, including a stable legal environment, a skilled workforce, modern infrastructure, and access to a diverse market. However, there are also challenges to consider, such as high living standards and labor costs, complex regulations and bureaucracy, language barriers, high taxes, and market saturation and competition.

To effectively set up and manage a business in Germany, entrepreneurs should engage in meticulous market research, craft a comprehensive business plan, seek guidance from local professionals, familiarize themselves with the tax system, acquire language proficiency, cultivate a robust network, and adhere to all legal obligations. 

By leveraging the benefits of the German business ecosystem and navigating the challenges effectively, entrepreneurs can position themselves for success in this competitive market.

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Working & Hustling » Starting a business in Germany: the overview you were looking for.

Starting a business in Germany: the overview you were looking for.

So, you’re flirting with the thought of starting your own business. You’ve got some ideas, plans even, and want to know what the process is to open a company in Germany. Maybe you’ve got some financing options on the table and just need to know how to get things rolling.

Good preparation is key to succeeding with starting a business in Germany. You can’t half-do it here. You should know what type of business you want to create, where it’ll be located, what the market is like, whether you need any permits, and the legal requirements.

You will also need to map out a full business plan and consider your financing options. Go through all the calculations until they are truly realistic. Depending on your goal, you’ll end up taking very different paths, so it’s important to do LOTS of research before launching your new endeavor.

The process to open a company in Germany starts long before you fill in any registration forms at the trade office. While only you and your advisers can figure out your business plan and financing, it’s to look at the requirements and legal structures for company formation in Germany.

Be warned, there’s no way around it – this is going to be some heavy legalese.

The different corporate entities in Germany

PICKING THE RIGHT LEGAL FORM

Company formation in Germany falls under several categories based on the number of founders, available funds, level of liability and business model. Important to know – German corporate law differentiates between the civil code ( Bürgerliches Gesetzbuch – BGB ) versus the commercial code ( Handelsgesetzbuch – HGB ). Small and one-person businesses are usually regulated under civil law , while larger commercial enterprises with high turnover are defined as commercial activity and follow commercial law. Also, there is a differentiation between unlimited (unbeschränkt) and limited (beschränkt), the first meaning a partner’s personal funds can be affected (i.e. bankruptcy, legal cases, etc.) and the second meaning that the liability is limited by the initial capital.

A partnership is probably the right legal form if you and at least one other person or entity are creating a company together. Here is a quick overview in this table (adapted from gtai.de) , with more details underneath:

• Civil law partnership (Gesellschaft bürgerlichen Rechts – GbR) is the simplest form of a partnership and has fewer rules than the rest. As a result, this entity only allows you to conduct small trade business up to a certain level of commercial activity (capital, profit, number of employees, etc.). Once you pass that level you need to “upgrade” to a commercial law partnership, such as those below. Partners equally share full liability for the business and there is no minimum starting capital. There are countless examples of this legal form in use, such as designers, bands, doctors, and handymen.
• General commercial partnership (OffeneHandelsgesellschaft – oHG) expands upon the GbR framework, but falls under commercial law, meaning that it must be registered in the Handelsregister. All partners are fully liable for debts and liabilities and there is no minimum starting capital . This is a good option if you and a few friends want to sell something at a higher profit than allowed with a GbR without founding a corporation.
• Partnership companies (Partnerschaftsgesellschaft – PartG) is basically the GbR but for freelancers or small business owners that want to work together at a commercial level while being individually responsible instead of merging together as one company. Examples include doctors, lawyers and accountants. For some professions, it is possible to limit the liability to the partnership’s assets (PartG mbB).
• Limited partnership (Kommanditgesellschaft or KG) is like the oHG but with at least one limited or silent partner (Kommanditist). The general partner (Komplementär) is personally liable while the limited or silent partners are only liable for their part of the capital. This means investors can become limited partners with less risk to themselves. No minimum level of capital is prescribed, but an amount has to be set in the partnership agreement. It is often used to  attract more investors  without making them fully liable.

Relevant for most people: the German LLC

A corporation is a better fit for larger, commercial enterprises. Generally, there are different shareholders that each have a stake in the company and work toward its success. The basic legal form is the equivalent of an LLC (Gesellschaftmitbeschränkter Haftung – GmbH) which represents a separate legal entity from its founders . This is the most popular legal form and works well for most industries. The main requirement is €25,000 in starting capital . Alternatively, if you are low on funds you can choose the “mini GmbH” option and form a limited liability entrepreneurial company (Unternehmergesellschaft haftungsbeschränkt – UG), which has a €1 minimum starting capital per founder. But you still need to reach the €25k eventually, because until then you need to set aside ¼ of your profit each year. Good news, once you reach that point you can upgrade to a full GmbH!

Starting a business in Germany with more money and a large group? A stock corporation (Aktiengesellschaft – AG) is another limited liability option if you can raise at least €50,000 in share capital. The company will then represent a legal entity and must have a supervisory board (Aufsichtsrat) as well as management board (Vorstand). You’ll have many more business opportunities as an AG but be ready for piles worth of paperwork.

And there’s more! If you’re interested in forming a non-profit, then you should look into the gUG and gGmbH legal forms, which are the non-profit (gemeinnützliche) versions of the UG and GmbH. There are also hybrid legal structures for company formation in Germany such as the  Ein-Person-GmbH  and Kommanditgesellschaft auf Aktien (KGaA). If you’re unsure about which legal form fits your business plan best, talk to a business consultant, especially for GmBH and AG forms.

Going solo? there is another guide for that

If it’s just you running the company, you’re probably self-employed (Selbständiger), as a freelancer (Freiberufler) or business owner (Gewerbetreibender), which I explain  in-depth here . As a business owner without any partners you are considered a sole proprietor (Einzelunternehmer). This means that you are fully liable for your business activities, have full control over your activities and are funded by your own assets. Sole proprietors usually follow the civil code, with some exceptions.

A registered merchant (eingetragener Kaufmann – e. K.) is someone who want to sell items as a one-person business under the commercial code. This type of company has additional rules, including being on the commercial register, but the owner is still fully liable for the business. None of these legal forms has a minimum capital requirement and generally require less paperwork than other types of company formation in Germany.

How to pick the right option?

There is an excellent overview of the most important criteria for selection made by the Ministry of Economy. Find it hereafter

How to register a business in Germany

DOWN TO FORMALITIES

This is where the country gets its reputation for being overly bureaucratic. To open a company in Germany, you’ll need to fill out form after form and visit various government institutions as well as banks, notaries, and probably legal or financial professionals. Freelancers and small business owners have to follow less steps,  as explained here .

1. Pick a company name

The regulations start with what type of name you can give babies – both human and corporate ones. The rules are pretty straightforward though. Small businesses that aren’t in the commercial register must include the owner’s first and last name in the official business name (Unternehmensbezeichnung) but can be a bit more creative with the trade name (Geschäftsbezeichnungen). A registered merchant on the other hand doesn’t need to include their own name, but still needs to pick a distinctive, descriptive name . The reason has to do with the differences between commercial and civil codes.

For other types of companies, you’re free to make up a business name as long as you include the legal form . The only conditions are that the name must be unique, in the sense that customers can identify your business through the name, and it should not lead to confusion about the nature of your business. For example, “Berlin Lawyers GmbH” and “Finance Institute AG” will likely not be allowed because they’re too general and potentially confusing to customers.

Once you have a name that works well, you can check with the commercial register (Handelsregister) if the name you have chosen is already in use and with the local court (Amtsgericht) as to whether you’ve fulfilled all the naming requirements. If you and more than one person is forming a company, you should also sit down with everyone involved to outline the company objective (Unternehmensgegenstand). The Chamber of Industry and Commerce (Industrie- und Handelskammer, IHK) offers a free check of your company name and objective, so take advantage of this service!

Worried someone might copy your name or brand? Talk to the  German Patent and Trade Mark Office (DPMA)  about protecting your intellectual property.

2. Visit a notary

An important step for starting a business in Germany is drawing up the articles of association (Gesellschaftsvertrag). This outlines the type of business, founding members, startup costs, any shareholders, how profits are distributed, and more. In some cases, you’ll need to have these articles of association notarized. They’ll confirm that everything, especially the financials, are in order and register you with the  commercial registry (Handelsregister) . This step is required for all commercial businesses meaning that freelancers and small businesses under civil code (such as the GbR) are exempt. Registration costs differ by type of legal form due to the different requirements, but expect to pay between €150 and €500, in addition to notary fees.

You can find a notary that speaks your language here.

3. Go to the trade office (Gewerbeamt)

This is where you apply for a trade license (Gewerbeschein) by presenting a thorough description of your company, as well as necessary permits. It’s required for all types of business except sole proprietors that are Freiberuflich, who can skip right to the Finanzamt step.

You may need special permits if you’re a liberal professional (doctor, chemist, architect, engineer, etc.), which you can find out from your respective chamber for liberal professions (such as the Architektenkammer or Steuerberaterkammer). For craftsmen (carpenter, glassblower, etc.), look into the  master craftman’s certificate (Meisterbrief)  from the Chamber for Skilled Crafts (Handwerkskammer – HWK). Also, if your business requires good hygiene (food services, working with minors) you may need a health certificate from the Public Health Office (Gesundheitsamt). If you’re unsure whether you’ll need a permit, speak directly with the IHK.

Regardless of your legal form, you need to bring the following to register a business in Germany:

• Valid ID card or passport and visa for each founder
• Meldebescheinigung (confirmation of address registration/residence) for each founder
• Gewerbe-Anmeldung (business registration form) for your municipality
• Registration fee between €10 and €40
• Any mandatory permits or certifications (such as a craftsman license)
• Police clearance (Führungszeugnis) if required
• (Notarized) articles of association for corporations and partnerships

Don’t speak much German yet? In some states, such as  Berlin  and  Hessen , you can fill out the necessary forms in English.

4. Register with the Finanzamt

Lastly, to register a business in Germany, you need to visit the local finance office (Finanzamt) with the filled out the tax questionnaire (Fragebogen zur steuerliche Erfassung). Corporations and partnerships will need to show copies of the articles of association, trade license, and entry in the commercial registry. Once everything is checked through, the Finanzamt will either ask for additional documents or provide you with a business tax-ID (Steuernummer) and a VAT ID number (Umsatzsteuernummer – Ust.-IdNr.) if you requested one.

Once you receive the VAT ID number in the mail – open the champagne! You can now finally start invoicing.

Starting a business in Germany: taxes, hiring, insurances, banking

GETTING THE BASICS RIGHT

You can’t open a company in Germany unless you understand the tax system. It will affect your profits and bookkeeping, regardless of business size. In addition to the taxes that you as an individual need to pay on your income, you should also learn about the value-added tax, corporation tax, and trade tax systems. Freelancers and small businesses are freed from some of these, so make sure to do your research.

The first step is setting up your accounts, preferably with the help of a licensed accountant or bookkeeper. Y ou’ll need to establish an opening balance sheet (Eröffnungsbilanz) and at the end of the year a report of accounts (Jahresabschluss) . Many of the things and services that you purchase for your business can be deducted from various taxes, including bookkeeping software, tax consultant, software, hardware, office supplies and furniture, tools for doing your work, etc. During the year, you should receive a statement from your accountant of your current business financials (Betriebswirtschaftliche Auswertung – BWA), from which you can also calculate your tax rates.

In Germany, most invoices require a 19% or 7% value-added tax (VAT), which is either called Mehrwertsteuer (MwSt.) or Umsatzsteuer (Ust.). When you pay this tax on goods and services you have purchased, it is called an  input tax (Vorsteuer) . You can deduct the input tax you pay as a business from the VAT you charge customers through the VAT return process (Umsatzsteuer-Voranmeldung). When you register, you choose between  Soll- and Ist-Versteuerung . The first means you pay the VAT on invoices once you send them to customers and the second means you pay the VAT only once the customer actually pays the invoice. If you’re doing business across Europe, make sure you look into the  VAT reverse charge  and VAT recovery, two regulations for business across different EU countries. NOTE – as a freelancer or small business owner you can be exempt from the VAT if in your first year your profits were less than €17.500 and the following year they were under €50.000 (Kleinunternehmerregelung).

If you are a sole proprietor or part of a partnership, you’ll be charged an  income tax (Einkommensteuer)  on your company profit. For small businesses, your income can be calculated based on an Einnahmenüberschussrechnung (EÜR), a simplified revenue and expenditure statement. For most other legal forms, you might be paying yourself a salary or earning income from shares, dividends, sales, etc. Regardless, you must report your income to the Finanzamt.

Corporation tax

As a corporation, you’ll be paying the   corporation tax (Körperschaftsteuer)  on your global taxable income. You may also need to pay a 25% withholding tax (Kapitalertragssteuer) on dividend payments if you have a parent company and a 25% final withholding tax (Abgeltungssteuer) on profits distributed to private shareholders.

The trade tax (Gewerbesteuer) is applied by the municipality to all commercial businesses (not civil) and varies between 7% and 17% depending on the local rate. Partnerships can offset this tax against the personal income tax, but still need to pay the full trade tax to the municipality.

If you want to open a company in Germany properly, get your books in order from the start and don’t put off finding a good accountant!

Requirements for hiring employees

Honestly, this is a whole article on its own, much like the legal and tax sections above. I’ll keep it short and sweet.

If you want to hire staff to work for you, register with the Federal Employment Agency (Bundesagentur für Arbeit) to receive an 8-digit company number (Betriebsnummer) for payroll (Lohnabrechnung). For each employee, you’ll be required to draw up an employment contract and pay your part for social security, health insurance, nurse care insurance and unemployment insurance. You will also need to calculate and withhold the income tax (Lohnsteuer) for your employee based on their tax class, in addition to the  church tax and solidarity surcharge tax (Solidaritätszuschlag) .

Make sure you understand the laws around work hours, sick pay, maternity leave, vacation and union representation – all covered in depth here.

Company formation in Germany for foreigners

You don’t need to be a German citizen to open a company in Germany, but you’ll need the correct visa or residency permit . If you only need time to set everything up with your German business partner, consider the 90-day Schengen visa for non-EU nationals. If you want to live and work in Germany, you’ll need a visa allowing  self-employment (Aufenthaltserlaubnis für selbständige Tätigkeit) or permanent residence (Niederlassungserlaubnis).

You may need to provide additional paperwork when starting a business in Germany and must be present for the notary appointment. If that is not possible for foreign investors, you can look into legalization options. There may also be some difficulties registering for a business bank account as a non-EU national.

Ok, that sounded rather depressing. But the truth is, Germany wants foreign investors and companies if they’ll bring new jobs and money into the country. Look into the incentive programs and  migrant entrepreneurship assistance . Also, you can set up a virtual office office through a lawyer if you prefer working remotely but want to have a nice business address. Separate article about virtual office in Berlin this way .

About insurances

Well, you’ve made it this far. Congratulations! You’re definitely hartnäckig, a great German word for stubborn. Oh, and you’re brave. How do I know that? Well you’re taking a risk by starting a business in Germany and being your own boss. But you don’t have to take on TOO many risks if you sign up for a few key insurances.

For self-employed people

• Health insurance (Krankenversicherung) and nurse care (Pflegeversicherung) – choose between private or public
• Pension insurance (Rentenversicherung) – choose between private or public
• Daily sickness allowance (Krankentagegeld) – covers sick days, where you might otherwise lose income
• Occupational disability insurance (Berufsunfähigkeitsrente) – basic income in case you’re unable to work anymore

For businesses

• Corporate liability insurance (Betriebs-Haftpflichtversicherung) – covers potential mistakes of your employees, problems with suppliers, etc.
• Professional liability insurance (Berufs-Haftpflichtversicherung) – this is important for freelancers and consultants, covers mistakes or bad advice with financial consequences
• Business interruption insurance (Betriebs-Unterbrechungsversicherung) – covers wages, expenses and running costs in times without business income
• Occupational accident insurance (Berufsgenossenschaft) – covers accidents in and around the office and for employees while working

You can read more about these and other insurances  here .

About banking

A separate business bank account (Geschäftskonto) is required for legal forms incorporating capital (GmbH, UG, AG und KGaA). It will be used to process any ingoing (expense) or outgoing (revenue) invoices. That’s where the starting capital is located too. All banks offer a business account but conditions may vary widely. Common costs associated with business bank accounts are the following:

• Costs for outgoing or ingoing transfers (Einzahlung oder Auszahlungen)
• Monthly costs (Kontoführungsgebühr)
• Costs for company credit cards (Kredit Karte Gebühr)
• Bank transfer costs (Beleglose Buchungen)
• Cash and check processing costs (Beleghafte Buchungen)

Self-employed people can use a normal bank account.

Helpful resources for starting a business in Germany

For in-depth guides, information, definitions, checklists, calculators, and forms that cover every little part of how to open a company in Germany, look through the following sites:

• Existenzgründer – especially the key agencies and checklists (German)
• Make it in Germany
• Gründer Platform
• Wir Gründen in Deutschland
• Für Gründer
• Federal Employment Agency

Hope this overview helped. Don’t hesitate to ask questions in the comments.

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Active since 2011, I help any newcomer tackle all practical aspects of moving to Germany. Everyday, up to 2500 visitors come find answers on registration, tax returns, unemployment, insurance, visa applications and more. Over the years, the value of this work has been recognized and featured on Expat.com, Vice, Berliner Zeitung, Financial Times & more.  

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This is very helpful. Thank you very much i do fall under self employed and am hoping that one day I will grow into a big business.

Great post, from this post I can clearly understand about company registration in Germany. Thanks for the posting such an amazing article.

Starting a Business

Do you have a good idea for a business? Would you like to take the next step towards self-employment? This calls for thorough planning. We’ll tell you what you need to ensure.

With a suitable business idea and a business plan

Would you like to become self-employed? Then you should prepare yourself thoroughly. Speak to experts that are familiar with your sector. Draw on the experiences of other people who have set up their own businesses.

You will need a business plan to form the basis for self-employment. In this plan, you should

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Wichtig: Important:  Setting up a business is a huge challenge. Weigh up the risks and opportunities carefully.

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Are you unemployed and interested in becoming self-employed? Then you can apply for a start-up grant. If you are in receipt of unemployment benefit II, one option would be initial financial support (Einstiegsgeld). Do you need more information on this or on other funding opportunities? You Employment Agency/Jobcenter will be happy to advise you.

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30 Profitable small business ideas in Germany

We share profitable small business ideas in Germany you can start. You can also read about small business ideas in Netherlands , Switzerland , and Cayman Island .

What We Covered In This Article

How easy is it to start a business in Germany?

Starting a business in Germany is relatively easy, as the steps to establish one are clearly defined. However, foreigners who intend to set up businesses in Germany may encounter some bureaucratic procedures. But with the help of the right individuals, these procedures can be easily walked through to get the needed result.

Also, while many forms may be filled out, information is available on the internet to help you in that area.

Is Germany a good business place?

Germany is a great place to establish a business, as the economy encourages such. The economy of Germany is one of the world’s most reliable economies, which helps businesses of various kinds to thrive.

Also, Germany is rated among the top 10 countries in terms of innovation and using science for economic benefits. Germany also uses findings and recommendations from scientific research to add value to the nation in various aspects.

Add to the European Union, Germany is the largest consumer market, with a consumer population of over 82 million. Germany also encourages the importation and exportation of goods. And the prominent position occupied by the nation on the chart of the World Importation and Exportation rating exemplifies this.

How can a foreigner start a business in Germany?

Starting a business in Germany is straightforward. Here, we will examine the steps to take to establish a business in Germany as a foreigner:

When starting a business in Germany, the first step is registering your address in Germany. And you should update this address whenever you move. This is important to start a business in Germany because without this, and you could not go ahead with other steps.

After registering your business, they would give you a tax ID and a registration certificate. This would enable you to proceed with other steps. After this, you are then required to open a bank account. This is important as it would be required in the process of registering your business and in the payment of taxes.

Now, if you are a sole proprietor or freelancer, you may not need to create a business account, although it is advisable. However, if you are establishing a corporation, you are mandated to open a business bank account.

After this, it is advised to get a tax advisor to help you pay taxes and other related transactions. Afterwards, ‌register your business with the tax office. And this can be done by being registered as either freelancers or traders. And if one is registering as a trader, one must get a trade permit.

After this, you need to get the proper residence permit and health insurance.

Business ideas to start in Germany without money

The following are some small-scale businesses you can start in Germany without money. They include:

English language tutoring:

After German, the English language is the following most-spoken language in Germany. And since not everyone understands the English language, many are willing to be trained to ‌communicate in it.

Thus, as an English language speaker, you can make money by offering English language tutorials to individuals interested in learning. This business does not require setup capital, as you can decide to freelance, do home service, etc.

Content Writing:

Content writing is one hotcake in digital marketing. And most individuals and brands are taking advantage of this to expand their business, increase reach and grow revenue.

Thus, as a content writer, you can offer your services to businesses needing them. You can also do this as a freelancer, or you could establish an agency.

Appliances Repair:

Another profitable business to be engaged in, to make lots of profit in Germany, is to repair appliances. Appliances repair is a skill that is needed in all nations of the world because of the nature of appliances to get knocked down after some period of use.

So, if you possess the skill, you could establish an appliance repair shop, where you help repair appliances of all kinds. Such appliances include iron, electric kettles, etc.

Cleaning business:

The cleaning business is another profitable business idea with the potential for growth in Germany. Most individuals, businesses, events centres, etc., require people to clean their homes, office spaces, and event halls.

If you can position your cleaning company well, you will get customers to patronize you to clean their apartments and other places. For individuals, this could be because of a busy schedule. For businesses, this is required to get a professional cleaning touch in their workspace.

Career Coaching:

You could also start a career coaching business, where you offer professional advice to individuals on their career choice, how to navigate life after school, getting promotions at work, etc.

As a career coach, you do not require any setup capital, as you can do this remotely and as a freelancer. This is another excellent business idea to launch in Germany for profits.

Franchise opportunities in Germany

Dickey’s barbeque pit:.

The Dickey’s Barbeque Pit is another franchise business opportunity in Germany. It is a barbeque business with 25 years of franchise success, and it is ‌in about 500 locations worldwide. They offer authentic and texas-style barbecue, which guests enjoy. They also operate an open kitchen, where customers can watch the meat being prepared.

The minimum cash requirement for Dickey’s Barbeque Pit is 300,000 EUR.

Coding Giants:

Coding Giants is a training school where children and young adults are taught coding skills to equip them for life. The school was established in 2015, and they have been committed to training individuals from age 7 to 19 on programming skills.

They have achieved things such as launching 16 courses for the school, working out over 300 class scenarios, and opening branches in nations such as Croatia, Spain, Poland, etc. And currently, they have about 115 branches. The minimum cash required for the Coding Giants franchise is 7,000 EUR.

FullPivot is a digital agency focused on helping businesses increase sales and grow. Thus, when you buy a franchise of FullPivot, you could offer digital marketing services to individuals, brands, businesses, organizations, etc.

FullPivot delivers 5-high demand solutions, including business communication, Website Development, Mobile Application Development, Search Engine Optimization, and Food Ordering Systems. The minimum cash required for a FullPivot franchise is 21,995 EUR.

RealtyPlus:

RealtyPlus is a real estate agency which was established in 2001. It started its franchise network in 2016, and currently, the agency is present in about 15 countries.

They focus on various real estate services, such as selling real estate properties, rentals, leases, etc. They also offer comprehensive real estate services, which satisfy their customer base. The minimum cash required for a RealtyPlus franchise is 2,000 EUR.

Websites to find businesses of the sale in Germany

Exitadviser.com:.

One website to find the business of the sale in Germany is the exit adviser website. The exit adviser websites provide business owners with a For Sale By Owner (FSBO) Package, which aids them in selling their business. They also have online tools and processes that help business owners sell their business quickly on the website.

The website provides professional advice to business owners, which helps during the business sale process. They also have customized legal forms, contract templates, etc., that you need as a business owner when selling your business on the website.

The businesses on this website are in various niches, such as e-commerce, manufacturing, real estate, etc.

Biz.trade.eu:

This website advertises businesses for sale in Germany and other states in Europe. It is an independent space where mergers, business exchange, sales, etc., are carried out between buyers and sellers. The business listed on this website are verified and well-screened.

They offer extended advertisements to their clients to facilitate the sales of the businesses listed on the website. They also list businesses in various niches on this website. Some of these niches include fashion, education, real estate, etc.

Exchangemarketplace.com :

Exchange marketplace is a verified website where businesses for sale in Germany are listed. It is also the most prominent and fastest platform for business sales for Shopify e-commerce stores.

The website lists businesses in various niches, such as photography, fashion, pet and animals, sports and recreation, automotive, etc. The businesses listed on this website are verified, and the website has a secure messaging platform where buyers and sellers can interact. They also have an encrypted payment capture, ensuring that individuals’ payments are securely captured.

Lite.globalbx.com:

This is a website which has over 46,000 businesses up for sale. It is a free platform where the selling and buying of businesses in Germany take place. The website also provides a confidential forum for business owners whose businesses are to be sold.

As a free business selling platform, they do not charge sellers, buyers or brokers for business listing and sales. It is a free platform to be used by all, with no commission being charged. The website also allows for the advertisement of businesses in various niches, such as fashion, housing, education, IT, E-commerce, etc.

Sellanybusiness.com:

This is another website where businesses for sale can be listed. It is a popular online business-for-sale website where one can sell and buy businesses in Germany. They have a variety of business listings in various niches to choose from. These niches include agriculture, engineering, food, real estate, etc.

Tech business opportunities in Germany

The following are some of the tech business ideas that you can launch in Germany as a business owner:

E-commerce:

One of the tech business ideas to launch in Germany is the e-commerce business. This form of business requires putting up products to sell online.

The e-commerce industry has experienced tremendous growth‌ over time. And during the pandemic of 2020, it became more acceptable. Thus, as a business owner, launching an e-commerce business would bring you profits.

Fin-tech means financial technology. It is a digitalized form of carrying out financial transactions, as opposed to the traditional banking system.

Fin-tech involves using mobile banking and other technological methods of handling financial transactions. This business would also flourish in Germany because of the nation’s love for innovation and technology.

Fitness Tech:

This has to do with using technological tools and methods to help people stay fit. This is done by manufacturing fitness watches, mobile fitness applications, sleep timers, exercise timers, etc.

The fitness tech niche is also flourishing and has excellent potential in Germany.

Agrotechnology:

This is using technological methods, systems, and tools in agricultural processes to improve yield. They could be products or services, and they increase the output of agricultural endeavours.

This is a brilliant and innovative tech business which is sure to prosper in Germany.

Digital Marketing:

The digital marketing niche is broad and involves all efforts targeted toward the advertisement and sales of goods and services on the internet. It is a well-established and flourishing business idea that would prosper any nation in the world.

Digital marketing involves online tactics such as SEO/SEM, social media management, email marketing, etc. So, if you establish a digital marketing agency in German, you will get many individuals, brands, and businesses who would require your services.

Benefits of doing business in Germany

The following are the benefits of doing business in Germany, they include:

Thriving Economy:

One benefit of doing business in Germany is gaining from the stable and flourishing economy of the nation. The economy of Germany is the largest in Europe and one of the 5 most extensive in the world. And despite the global crisis, Germany’s economy has stayed strong‌.

Germany boasts of great brands, such as BMW, Volkswagen, etc., which show how flourishing the nation’s economy is. And this is a significant benefit to be enjoyed by business owners in the nation.

Strategic location of German:

The location of Germany in the world is another advantage to be enjoyed by business owners. Nine countries border the nation, putting Germany in an advantageous position for trade prosperity.

Germany also hosts many trade fairs, estimated to host two-thirds of the leading trade fairs in the world. Thus, as a business owner, your business would ‌benefit from this.

Quality and professional workforce:

Another benefit to be enjoyed as a business owner in Germany is the workforce quality in Germany. As a business owner, you must employ some workers to help your business.

And since the workers in Germany are known for their commitment to excellence at work, they would surely put in their best for the progress of your business.

Germany has a population of over 82 million. And this makes the country the largest consumer market in Europe!

Large consumer market:

Hence, as a business owner in German, you already have a large customer base to sell your products and services to. And since Germans have embraced e-commerce, a business owner ‌creates a German-specific website where people can order products from the comfort of their homes.

Challenges of starting a business in Germany

The following are the challenges of doing business in Germany. They include:

Difficult procedures for starting a business:

One challenge encountered in ‌starting a business in Germany is ‌in setting up. Germany has bureaucratic rules in the process of business establishment, and this takes so much time and capital set up.

Aside from general requirements, local labour laws also pose a problem, such as registering with relevant professional bodies, getting a construction permit to construct a building for your business, etc. Business setup in Germany takes so much time, money, etc.

Complicated tax laws:

Another complicated aspect of ‌setting up a business in Germany is in navigating the tax laws. The tax payment process is complicated, so one would require the help of local tax officers to ‌do it properly.

Also, there are so many taxes to be paid by business owners. Such taxes include capital gain, dividend, trade, etc.

Strong employee protection:

Germany also has strong laws in place to protect employees in the workplace. And this is such that employees can’t be dismissed at will without justifiable reasons.

These employee protection laws also ensure employees get a 20-day paid leave every year, enjoy public holidays, etc. All these laws are in place to ensure that employers do not mistreat their workers in Germany.

Language barrier:

The German language is the official language of most individuals in Germany. Thus, in establishing your business as a non-German-speaking foreigner in Germany, you may experience some difficulties in social interaction.

However, with the help of local interpreters and translators, this challenge is tackled to a minimum level.

High cost of labour:

The cost of hiring labour in Germany is also high compared to other European Union Nations. For example, Germany’s average hourly cost of labour is 35.6 EUR.

Besides the payment of salaries, employers also have to pay into employees’ pensions, insurance, nursing care, etc. This is a challenge that you should carefully analyze and plan for before starting your business in Germany.

30 profitable small business ideas in Germany

The following are some profitable small business ideas to launch in Germany. They include:

1. Manufacturing spare parts:

Germany is the centre for automobile companies. And it is home to automobile companies such as Volkswagen, BMW, etc. One of the lucrative business ideas that one can launch in Germany is manufacturing spare parts.

Thus, a business focused on manufacturing spare parts for automobiles would indeed thrive. However, you must be strategically positioned near industrial companies and in a good location where your target audience is.

Starting a bakery business in Germany is also a profitable idea. If you possess baking skills, you will surely succeed in this business. And if not, you can hire experts in the field.

You can bake a cake, snacks, etc., for retail sale, to supply to individuals for parties, schools, etc. You can also bake bread, which can be sold at individual prices, or sold in bulk to retailers for more profits.

3. Day care or creche:

Child care is critical in Germany. Thus, many parents require the services of a babysitter or a creche, where their babies can be taken care of in the parents’ absence. Starting day care or creche is another business idea that would flourish in Germany.

Thus, you can set up a daycare centre in a spacious apartment, where the children would stay. You can also employ more hands to help you in the business. However, you need to have relevant certifications, certifying you can handle children.

4. Elder homes:

Elder homes are another necessity, which one can turn into a business opportunity. The senior citizens in various nations require special attention and care to cater for their health, feeding, etc. Thus, you can establish an elder home, where you take in older adults and care for them.

You should employ a nurse and medical doctor to care for individuals with certain medical conditions. It is also essential to infuse creativity in your elder home by making games available for them to play, planning fun activities, etc.

5. Animal care:

You can also start an animal or pet care business where you care for pets. This could include feeding them, walking them, training them, etc. The animal care business is a lucrative business that would flourish in Germany due to the love of Germans for their pets.

6. Boutique:

Germans love fashion. Thus, they are willing to spend money purchasing clothes, bags, belts, shoes, etc. Opening a boutique in Germany is another fantastic business idea that is sure to bring in loads of money.

However, if you are opening a boutique in Germany, you need to target areas where your target audience would be located. This is important to aid sales and profit-making.

7. Virtual assistance:

You can also start a freelance business as a virtual assistant where you help people carry out secretarial duties. Virtual assistance is much in demand for professionals, business owners, etc., who need someone to help them fix meeting schedules, book flights, take calls, etc.

Thus, you can position yourself as a virtual assistant and make money from it. However, you must possess some soft skills to succeed in this field, such as pro-activeness, communication, etc.

8. Laundry business:

The laundry business is also very profitable in Germany. Many people are busy and may not have the time to take care of their laundry. Thus, they require the service of a laundry business to help ‌in this area. And for this need, you can create a business to make profits.

When starting a laundry business, you must be strategically ‌positioned where most of your target audience lives or beside companies and offices.

9. Gym business:

You can also open a gym business, where you train people and help them become fit. The gym business is another thriving business idea that would succeed in Germany. You would be required to buy gym equipment and probably employ a gym instructor if you are not skilled in that area.

It is a business that would do well in Germany if the business plan is well created and implemented.

10. Event planning:

Starting an event planning business in Germany is another great business idea. As an event planner, you would be in charge of planning events, such as birthday parties, wedding ceremonies, etc.

Also, you would be required to source vendors for your client’s events, such as food vendors, decoration vendors, etc. Another essential thing in event planning is that you need to know how to work around your client’s budget to create the event of their dreams.

11. Graphic Design business:

As a graphic designer, you can start a graphic design or brand identity business, where you design aesthetic designs for individuals, brands, businesses, organizations, NGOs, etc. This is to help them communicate effectively with their target audience using visually appealing designs.

As a graphic designer, you can also delve into UI/UX design, where you create beautiful and visually engaging landing pages, website layouts, etc.

12. Hair Salon:

The fashion industry is lucrative, and it is worth billions in the economy of most nations. Thus, as a hair stylist, you can open a hair salon where you make hair for individuals.

Hairstyles, such as braids, weaving, etc., are well in demand. You can also get involved in making wigs to sell for extra income.

13. Veterinary clinic:

As a veterinary doctor, you can open a veterinary clinic where you take care of animals. This is an excellent business to launch because most people will spend money to care for their pets.

As a veterinary doctor, you can spread the news about your business using social media, word of mouth, etc. This is a profitable business to launch in Germany.

14. Blogging:

Blogging is one fantastic way to make money if you possess excellent writing skills. It involves writing on a subject ‌you love or having the expert knowledge to make others know about it. And through this, you can sell some goods and services related to this subject‌.

You can also allow other individuals to post their affiliate links to your blog to earn a commission when readers use those links to make a purchase. It is a great business that can be done without opening a physical store. You can make your room your workspace.

15. Business consulting:

Business consultancy is a great business idea that most businesses and brands need. It involves advising brands and businesses on how they can improve in various aspects of their business.

The goal of business consultancy varies and depends on your clients’ needs. Some can need expert advice on how to increase brand awareness, grow revenue, expand, etc. Thus, as a business consultant, you should know the various aspects of the business.

16. Scriptwriting:

You can also start a script writing business in Germany, either as a full-time job or as a side gig. Script writing involves writing scripts for movies, series, etc., used in the film industry.

As a scriptwriter, you can change loads of money for your knowledge and skill in this field. This business can be done as a freelancer, as a full-time business, or as a side gig.

17. Fashion designing:

The fashion industry is booming. And many individuals prefer custom-made clothes to already made ones. A fashion designing business is an excellent business to launch In Germany if you have the skills.

Thus, as a fashion designer, you can start your fashion designing business, where you make clothes for people. Depending on your skill, you decide to make clothes for a specific group of people, such as only males, females, children, etc.

You can also decide to make suits, dinner dresses, wedding dresses, etc. It is a profitable business to launch in Germany.

18. Dropshipping:

Drop shipping is a business where a wholesaler or retailer sends goods to your customers in the guise that you sent the goods. It is a cheap way to launch a good business, where you get customers to sell goods indirectly.

As a drop shipper, you don’t need to own the goods. You just position yourself as a trustworthy brand and get people’s orders. Then you make the orders from a retailer/wholesaler, and the goods get sent to your customers by the retailer/wholesaler without you being involved‌.

19. Coffee cafe:

A coffee cafe is a shop where coffee, drinks, snacks, etc., are sold. As a coffee cafe owner, you can also sell other light food items for people to take out if they so desire.

It is an excellent business opportunity, as some individuals who need working space can also come into the cafe to work and‌ buy what is being sold.

20. Restaurant:

The restaurant business is another excellent business to launch in Germany. This is a business where you cook various dishes to sell to people. As a restaurant owner, you can make intercontinental dishes, local dishes, etc., to serve individuals from different walks of life.

The restaurant business is highly lucrative. However, you need to be positioned in a suitable location, where you can be visible to individuals who need your services.

21. Skin care business:

The skincare industry is large and is worth billions today. As a skin care consultant or dermatologist, you can start a skincare business where you sell skincare products of various kinds.

You can decide to sell organic products whose ingredients they source from natural materials. However, ‌ensure to make excellent products that benefit people’s skin, not inferior products that could damage their skin.

22. Grocery store:

You can also open a grocery store in Germany, where you sell items of various kinds. In a grocery store, household items, food items, etc., are sold.

This is a very lucrative business to launch as the items sold are needed every day by individuals and families. When launching your grocery store, getting a convenient store in a good neighbourhood is advisable, where you can be visible to many individuals.

23. Car washing:

You can also start a car washing business in Germany, where you wash cars of various kinds. You can also decide to wash other vehicles, such as buses, tricycles, etc.

The car washing business is profitable, as you would have individuals who barely have time to wash their cars to bring them to you for washing. You would also carry out vacuuming, cleaning the interior part of the vehicle, etc.

24. Social media management:

Social media management is a digital marketing skill involving using social media to market, advertise and sell goods and services. It is a lucrative skill that is well in demand.

Thus, as a social media manager, you can work as a freelancer or start your social media management agency. You can help individuals, brands, businesses, etc., manage their social media accounts here.

25. Welding:

This is another lucrative business opportunity to launch in Germany, which will bring in lots of money. Welding involves joining iron materials together to make objects.

Some ‌things made from the welding process include iron rods, iron gates, etc. If you possess this skill, you can make a comfortable living out of it while living in Germany.

26. Music training studio:

In Germany, you can also start a music training studio, where you train people in the intricacies of music, songwriting, etc. And music is a core aspect of entertainment appreciated in many countries.

So, if you possess a qualification in this field, you can make a lot of money. All you need to do is look for a suitable space for your studio in a good location. Afterwards, use digital marketing, word of mouth, etc., to spread the news about the studio.

27. Psychological Counselling/Therapy:

Another business that you can start in Germany is working as a psychologist or therapist. Mental health is a big part of healthcare, and people gradually embrace psychological help and therapy to navigate life.

Thus, if you have credentials and qualifications in ‌psychology, you can establish a business as a counselling psychologist or therapist to help individuals.

28. Translation:

Aside from German, the English language is another language of communication in Germany. However, not everyone understands both languages. And in some situations, one may be required to get a translator, to ‌ understand another person.

There are 130 million native German speakers worldwide, with over six countries considering the German language their official language. In 2021, Germany ranked third in the world in exports, worth 1.67 billion USD. Due to this, the German translation industry saw an increased demand for their services as more international companies would need them to enter the German market.

So, if you are competent in speaking German and English, you can start a translation business, where you translate speech, written content, etc., for people. Besides having cultural and linguistic proficiency in the German language and market, you must consider the industries you will be working with and planning to specialize in. For example, Germany’s financial sector has the fourth largest FinTech sector in the world, which could have a lot of potential as there’s a clear need for German translations for financial documents, which would require you and your linguists to have a background in commerce and finance. Healthcare is another industry flourishing in Germany but requires training and education background in health care, and medical translators must be accredited before they can translate medical documents.

The industries mentioned here are just some of what you will be encountering in the German translation services, as you will have to learn more about them to ensure the quality of your translation projects and better define your brand as a translation provider for specific sectors.

29. Catering:

You can also start a catering business if you possess excellent culinary skills. This business involves cooking food for individuals, groups, events, etc.

You can also cook in bulk for individuals who.do not have the time to cook. Also, you can do a daily supply of food for a company and its staff.

30. Photography:

People love to preserve memories in images. And this is one reason for the success of photographers around the world.

Starting a business as a photographer in Germany is a good business idea. As a professional photographer, you can make a comfortable living out of photography. Also, you can decide to have a niche that you specialize in. This gives you more credibility and gets you paid more. This is because a specialist is more paid and valued than a generalist.

Some of the photography industry’s niches include children’s photography, couples photography, etc.

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