Business account 2025: Guide for Freelancers, Kleinunternehmer, and Companies

Who needs a business account and why?

Not every business is legally forced to open a business account, but for many, it’s either a requirement or at least a strong recommendation.

Legally required for capital companies

If you form a GmbH, UG, AG, or another capital company, you must open a dedicated business account. The share capital has to be deposited into it, and the account serves as the company’s financial backbone. Without it, you can’t even complete the registration process.

Strongly recommended for freelancers and sole traders

Freelancers, sole proprietors, and Kleinunternehmer are not legally obliged to open a business account. However, most banks prohibit using personal accounts for ongoing business transactions in their terms and conditions. Using a separate account avoids:

• conflicts with your bank’s AGB,

• confusion when preparing your bookkeeping or tax return,

• messy audits where private and business payments are mixed together.

Tax and legal perspective

From a tax point of view, a business account is part of your business assets (“Das Geschäftskonto ist dem Betriebsvermögen des Kontoinhabers zuzurechnen”). That means all income and expenses flowing through it are directly connected to your business, and the account can be examined in case of an audit. Keeping it separate from private funds makes compliance straightforward and transparent.

In short, even if you’re not legally required, opening a business account is one of the simplest steps to run your finances professionally and save headaches later.

When should you open a business account?

The best time to open a business account is as early as possible in your entrepreneurial journey.

• Before sending your first invoice: This ensures that all client payments flow into a dedicated account from day one, keeping your records clean and making it easier to track income.

• At incorporation for capital companies: For a GmbH or UG, a business account is required immediately because the share capital must be deposited before registration is finalized.

• Why early matters: Starting with a separate account prevents the mix of private and business funds. This keeps your bookkeeping clear, simplifies VAT handling, and avoids problems during audits or tax filings.

👉 Open your business account before your first transaction — it saves you from sorting out messy finances later.

How to open a business account in Germany (Step-by-Step)

Opening a business account in Germany has become much easier in recent years. Most providers let you complete the process entirely online, but the exact steps and required documents depend on your legal form.

Documents by legal form

If you’re a freelancer or sole trader, the bank usually only asks for a valid ID, proof of address, and, once assigned, your tax number. This is the simplest path and can often be completed in less than 20 minutes.

For a GbR or other partnerships, each partner must provide identification. Additionally, you’ll need the partnership agreement so that the bank can verify who is authorized to use the account.

A UG or GmbH needs more paperwork. You’ll be asked for the articles of association, the shareholder list, and an excerpt from the commercial register (or confirmation that the company is still “in formation”). The managing director has to identify themselves, and you’ll need a registered German business address.

Process and checks

The identification step is usually done digitally via VideoIdent on your phone or laptop. Some banks still allow PostIdent through a local post office branch. In both cases, you will be required to show your ID and confirm your personal details.

Every provider will conduct Know Your Customer (KYC) checks to comply with anti-money laundering rules. A SCHUFA check is sometimes performed, especially by traditional banks, though many fintech providers skip it for freelancers and small businesses.

Once everything is verified, your account is activated and ready to use — often the same day with digital banks, or after a few days with traditional providers.

In short, the process is straightforward: prepare your documents, confirm your identity, and you’ll be set up with a business account faster than you might expect.

Cost structure — why business accounts look “more expensive”

At first glance, business accounts often seem pricier than personal checking accounts. Where many private accounts advertise “€0 per month,” business customers are usually faced with plans starting at €6–€ 12, or even more, at traditional banks. However, the difference ultimately comes down to how companies utilize their accounts — with higher transaction volumes, more complex services, and additional compliance obligations.

Most providers follow one of two pricing models: either a flat monthly plan with a package of included services, or a pay-per-transaction model where the basic account is free but each outgoing transfer, card payment, or ATM withdrawal may trigger a small fee. The cheapest option depends on your business activity: a freelancer with a handful of invoices per month will spend far less than a retailer depositing cash daily.

Extra services also add to the price tag. Features like instant SEPA transfers, multiple cards, or sub-accounts (sometimes called “Spaces” or "Pockets") are often included only in paid tiers. Cash handling is another factor: fintech providers usually skip it altogether, while banks with branch networks charge a percentage fee per deposit. International payments via SWIFT also come with their own pricing structure, which matters if you work with clients abroad.

Indeed, business accounts are generally more expensive than personal ones — but those costs are also fully deductible as business expenses. And for many entrepreneurs, the value of clean separation, easier bookkeeping, and professional credibility more than offsets a few euros per month.

If you want to avoid fixed fees altogether, there are options like Vivid Freelance Standard that advertise a €0 plan. Keep in mind, though, that while the monthly price may be free, the bank will usually charge for certain actions, such as cash deposits or additional physical cards. In practice, there’s rarely such a thing as a completely free business account — but there are plenty of affordable options if your needs are simple.

Picking the right account: A simple decision framework

With dozens of providers and pricing models, it’s easy to get lost in the details. A quick way to cut through the noise is to focus on a handful of decisive factors.

5 filters to decide fast

1. Legal form eligibility — some accounts are open only to freelancers and sole traders, while others also support UG, GmbH, or partnerships.

2. Cash handling — do you need to deposit or withdraw regularly, or is your business almost entirely digital?

3. Transactions volume — look at how many SEPA transfers are included for free and what each extra booking costs.

4. Cards & roles — do you need multiple physical or virtual cards, or even role-based access for team members?

5. Scaling potential — can the account grow with you by adding users, sub-accounts, and SWIFT transfers when you expand?

Our quick recommendations

• Freelancers or Kleinunternehmer: Start lean with Vivid Freelance Standard. It is free, simple, and powerful enough for managing a handful of invoices. You can always upgrade later.

• UGs, GmbHs, or teams: Go with Qonto. They support more legal forms, provide team access, and scale smoothly as your needs grow.

• Cash-heavy businesses or those needing loans: A traditional bank like Commerzbank or a hybrid option like FYRST makes sense. Both offer branch access, cash deposits, and credit products that fintechs don’t.

Match your account to your legal form and daily banking habits, and you’ll quickly see which option fits best.

Banking + bookkeeping: how to keep it clean (and avoid tax pain)

A business account isn’t just a formality — it’s the foundation of clean bookkeeping. The earlier you separate your finances, the easier life becomes when tax season rolls around.

Start by using a dedicated account from day one. Every client payment, supplier invoice, or tax transfer should go through it. When making a transfer, always use a consistent reference (Verwendungszweck) so that payments can be easily matched to invoices later.

Make it a habit to export your bank data monthly and line it up with receipts and invoices. Even if you’re doing your taxes yourself, this ensures nothing gets lost, and if the tax office ever checks, your records are ready.

If you want to go one step further, you can automate invoice matching and VAT preparation. Many modern providers let you connect your account with accounting software, so payments, receipts, and even tax reports are automatically aligned in the background.

How Norman makes a business account even more powerful

Opening the right business account is the first step. The second is putting it to work in your finances. When you connect your account to Norman via secure open-banking, every transaction is automatically imported, categorized, and matched with invoices. VAT is detected in the background, your EÜR and Umsatzsteuervoranmeldung are pre-filled, and you always know where you stand.

Instead of downloading CSV files or manually tagging payments, you get real-time bookkeeping without the spreadsheet circus. Whether you’re a freelancer with a handful of invoices or running a growing GmbH, having a dedicated business account connected to Norman turns banking data into ready-to-file tax reports — and keeps you compliant with no extra effort.

FAQ

Can I use a personal account instead of a business account?

Technically, you can — but most banks explicitly forbid it in their terms and conditions. Even if your bank doesn’t complain right away, a high volume of incoming transfers can trigger account reviews or even termination. Beyond that, mixing business and private payments makes bookkeeping and tax filing unnecessarily complicated.

Who must legally have a business account?

Capital companies such as GmbH, UG, or AG are legally required to maintain a dedicated business account. Freelancers and sole traders are not obligated, but they benefit from the clear separation of finances, easier VAT handling, and a more professional appearance with clients.

Where do I see “der Zahlungsempfänger” on a statement?

On every bank statement, you’ll find the payment recipient (Zahlungsempfänger) listed alongside the transaction details. If you are the account holder, that field will show your business name. To keep everything clear, always use a consistent reference (Verwendungszweck) when sending or receiving payments — this avoids confusion and helps both your clients and your accountant.

Which business account is truly free?

Several providers advertise €0 monthly fees — Vivid Freelance Standard are common examples. But “free” doesn’t mean zero cost: you may still pay for cash deposits, extra cards, or international transfers. Always check which actions are included in the free tier and where hidden costs can appear.

Are business account costs tax-deductible?

Yes. Monthly fees, per-transaction charges, and card costs are all treated as operating expenses. You can deduct them in your EÜR or annual accounts, which means the tax office effectively shares part of the cost.

How long does opening take?

For freelancers and sole traders at digital banks, the process can be completed the same day if you have your documents ready and pass VideoIdent quickly. For UGs, GmbHs, or other registered companies, the process typically takes longer because the bank must review formation documents and shareholder structures, which can take several days to a couple of weeks.

Conclusion — choose with intent, not just by “€0/month”

Picking a business account isn’t about chasing the lowest advertised fee — it’s about finding the account that actually fits how you work.

• If you’re a freelancer or Kleinunternehmer, a free account with Vivid is perfectly fine to start with.

• If you’re planning to incorporate a UG or GmbH, or need features for teams and scaling, providers like Qonto make more sense.

• If your business relies heavily on cash deposits or needs access to credit, a traditional bank such as Commerzbank or FYRST remains the better choice.

Think about your legal form, your daily transaction habits, and whether you’ll need cash handling or international transfers. With that clarity, the right account usually becomes obvious.