If you're planning to start a Gewerbe, congratulations! You're embarking on an exciting journey filled with opportunities and challenges. One of the first steps is registering your Gewerbe, which is a crucial requirement in Germany. Here’s your ultimate guide to getting started, whether you’re a freelancer, Gewerbetreivende:r, or small business owner.
1. What is a Gewerbe?
A Gewerbe refers to a legal, self-employed activity that is visible to the public, aimed at generating profit, and intended to be ongoing. It excludes professions in the creative, scientific, or freelance sectors and activities like farming or managing personal assets.
Examples of Gewerbe:
Driving schools
Restaurants
Retail shops
Security services
Brokers for financial or insurance services
If your activity doesn’t fall under freelance professions or creative/scientific endeavors, you’ll need to register as a Gewerbe.
2. Freiberufler or Gewerbetreibender: What’s the difference?
Freelancers and Gewerbetreibende:r have different obligations:
Freelancers: Only need to complete the tax registration form (Fragebogen zur steuerlichen Erfassung). Once you receive your tax number, you're good to go.
Gewerbetreibende: Must additionally register with the local trade office (Gewerbeamt) and pay Gewerbesteuer.
It is crucial to understand where your activity falls. Norman can guide you through this process to ensure you are classified correctly.
3. Can I be both a freelancer and a Gewerbe?
Yes, you can hold both statuses if you engage in different types of activities. However, each activity must be registered separately. You may even receive multiple tax IDs if your activities are unrelated.
4. When do I need to register a Gewerbe?
According to German law, you must register a Gewerbe when:
You start a commercial activity.
You take over an existing Gewerbe.
You open a new branch office.
It’s best to register before beginning any operations to avoid delays or penalties.
5. What is a small Gewerbe?
A small Gewerbe (Kleingewerbe) is a type of enterprise that doesn’t require double-entry bookkeeping. Instead, you can use the simpler profit and loss method (Einnahmenüberschussrechnung).
Key thresholds for small Gewerbe:
Annual revenue: Up to €600,000
Profit: Up to €60,000
Note: A small Gewerbe differs from a small entrepreneur (Kleinunternehmer), who is exempt from VAT under German tax law.
6. Steps to start a Gewerbe in Germany
Starting a Gewerbe involves a few key steps:
Step 1: Register at the trade office
Find the local trade office (Gewerbeamt) based on your business location. You’ll need:
A valid ID or passport.
Additional documents (e.g., police clearance, health certificates) depending on your business type.
Step 2: Tax registration
Once registered, the trade office notifies the tax office. You’ll then complete the Fragebogen zur steuerlichen Erfassung.
You can submit the Fragebogen on Norman in English for free, with tips and guidance along the way.
Step 3: Chamber of Commerce Membership
All Gewerbe registrations automatically enroll you in the local IHK or HWK. Membership fees vary but are waived for small businesses with low profits.
7. Costs of registering a Gewerbe
The cost of registering your Gewerbe varies by location, typically between €20–€70. If you lose your business registration certificate (Gewerbeschein), you can request a replacement for a small fee.
8. Tax registration process
The tax office will require you to complete the Fragebogen zur steuerlichen Erfassung. Finanzamt will send you a Steuernummer for your business. It will arrive by post in 4-8 weeks. You should use this Steuernummer on domestic invoices and tax declarations.
This step can be time-consuming, but Norman’s Fragebogen is easy to fill out and submit. No Elster account required.
9. Membership in the Chamber of Commerce (IHK)
Registration as a Gewerbetreibender automatically enrolls you in the IHK, which provides:
Free advice on economic and legal issues.
Access to training and workshops.
Certain businesses, such as those with low profits, may qualify for reduced or waived fees.
10. Gewerbesteuer explained
Gewerbetreibende are required to pay Gewerbesteuer in addition to income tax and VAT. However, there’s a tax-free allowance of €24,500 in annual profits. The exact tax rate depends on your local municipality.
Norman helps you calculate, track, and file your Gewerbesteuer effortlessly.
11. What comes after registration?
Once your Gewerbe is registered, you’re officially self-employed! Here’s what’s next:
Use Norman to issue invoices, save receipts, and manage taxes efficiently.
Stay on top of filing deadlines with automated reminders.
Enjoy peace of mind with a tool tailored to Gewerbe and small businesses.
Why Choose Norman?
At Norman, we eliminate the complexities of self-employment and managing a Gewerbe in Germany. We ensure you’re always compliant and efficient, from smart e-invoicing to tax filing.