Starting a GbR in Germany 2026: Guide, Costs & Liability

Starting a GbR in Germany 2026: Guide, Costs & Liability

If two or three of you are starting a business together, the GbR is often the most obvious legal form: fast, cheap and notary-free. No share capital, almost no bureaucracy – with a shared purpose you are practically a Gesellschaft bürgerlichen Rechts straight away.

But the simplicity comes at a price: in a GbR every partner is personally liable with their private assets. Underestimate that and you risk more than you bargained for. So it pays to look clearly at formation, costs and liability.

In this article we show you how to start a GbR in 2026, what it costs, how it is taxed and what changed with the new company register (eGbR).

Key facts at a glance

• Two founders are enough: a GbR comes into being as soon as at least two people join for a common purpose (§ 705 BGB) – with no notary and no share capital.
• The cheapest legal form: realistically you start for under €100, often even €0 if no trade registration is needed.
• Full liability: all partners are liable without limit, jointly and severally, including with private assets – the key drawback.
• Fiscally transparent: the GbR pays no income tax. The profit is split and taxed privately by each partner; VAT and trade tax are borne by the GbR itself.
• New since 2024: the MoPeG introduced the company register (eGbR) and changed the default profit split – now the participation ratio counts, no longer automatically per head.

What is a GbR?

The Gesellschaft bürgerlichen Rechts (GbR) is the simplest form of partnership (§ 705 BGB). It comes into being as soon as at least two people join forces to pursue a common purpose – an agency, a joint practice, a shared café.

Typical features of the GbR:

• No minimum capital – unlike a GmbH (€25,000) or UG (€1)
• No notary required (except when real estate is part of the partnership assets)
• At least two partners – there is no one-person GbR
• Suitable for freelancers as well as traders

If the GbR grows large or runs a fully commercial business operation, it automatically becomes an OHG. Whether you are freelance or commercial is explained in Freiberufler vs. Gewerbetreibender.

GbR, UG or GmbH? The legal-form comparison

Before you commit, compare the GbR directly with the two common corporations. The big difference is liability and capital:

*Notary only needed when real estate is contributed to the partnership assets.

In short: the GbR offers the simplest and cheapest start but demands full personal liability. The UG and GmbH protect your private assets but cost more capital, bureaucracy and notary fees.

How to start a GbR in 4 steps

1. Draft a partnership agreement. Verbal is legally enough but risky. Put in writing: partners, purpose, contributions, profit split, management and what happens on exit.
2. Register a trade (only for commercial activity). Each commercial partner registers with the trade office – see the trade registration guide. Pure freelancer GbRs need no trade registration.
3. Notify the tax office. You receive the tax registration questionnaire and apply for a dedicated tax number for the GbR.
4. Open a business account. A joint account in the GbR's name keeps business and private cleanly separate – the basis for proper bookkeeping.

A GbR is often founded in a single day. Without trade registration (a pure freelancer GbR), step 2 even drops away.

The partnership agreement: what to include

A written agreement is not legally required, but strongly recommended – it prevents disputes and settles the worst case. These points belong in it:

• Partners and purpose – who is involved, and what is the GbR's goal?
• Contributions – who brings money, assets or work?
• Profit and loss split – per head, by contribution or freely agreed
• Management and representation – who may bind the GbR externally?
• Entry and exit – what happens on notice, death or a dispute?
• Voting rights – one head, one vote, or by participation?

Without a rule, the statutory default of § 709 BGB applies since the MoPeG: profit and voting power follow primarily the participation ratio, alternatively the value of the contributions – and only as a last resort per head. If you want something else, state it expressly in the agreement.

Costs of forming a GbR

The GbR is the cheapest legal form there is. Realistic 2026 costs:

• Trade registration: approx. €20–60 per partner (depending on municipality)
• Partnership agreement: €0 DIY, or a few hundred euros with a lawyer
• Notary: usually €0 – only needed for real estate
• Share capital: €0
• eGbR registration (optional): approx. €30–100 in notary and register fees

That means a GbR is usually founded for under €100 – a key reason for its popularity among founder teams.

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Liability: the GbR's biggest drawback

The decisive point: in a GbR all partners are personally, jointly and severally liable – including with private assets. If one partner takes on debt in the GbR's name, a creditor can pursue the entire private wealth of every partner, regardless of who signed.

Important: liability does not end immediately on exit either. A departing partner remains liable for existing obligations for up to five years afterwards (Nachhaftung). And registering as an eGbR changes nothing about personal liability – it only adds external transparency.

This is exactly where it differs from a corporation. If you want to limit liability, consider a UG or GmbH. For low-risk services, the GbR is often perfectly sufficient – a solid business liability insurance cushions the main risks on top.

Taxes in a GbR

The GbR itself pays no income tax. It is fiscally transparent: the profit is calculated and allocated proportionally to the partners, who tax it in their personal income tax return.

Three filings matter:

• Separate and uniform profit assessment: the GbR declares its total profit and the split to the partners once.
• VAT: here the GbR itself is the entrepreneur – it files VAT, not the individual partners. If you stay under the limits (prior year max. €25,000, current year max. €100,000), you can use the small-business rule (Kleinunternehmerregelung).
• Trade tax: only for a commercial GbR; the €24,500 allowance applies to the partnership. Pure freelancer GbRs pay no trade tax.

Most GbRs determine profit via the income surplus calculation. Clean bookkeeping is the foundation – Norman handles receipt capture and prepares your VAT returns with its AI bookkeeping. For everything else at the start, see becoming self-employed and taxes for the self-employed.

eGbR: the new company register (MoPeG)

Since 1 January 2024, the MoPeG (Act to Modernise Partnership Law) introduced the new company register (Gesellschaftsregister). A GbR registered there is called an eingetragene GbR (eGbR).

Registration is in principle voluntary – but mandatory if the GbR wants to acquire registered rights. Specifically, you need the eGbR to:

• buy or sell real estate (entry in the land register)
• hold or acquire GmbH shares
• register trademarks or other registered rights in the GbR's name

An eGbR creates more transparency and legal certainty and may carry the suffix "eGbR" in its name. But it brings registration and follow-up costs – and changes nothing about personal liability. For a classic service GbR without property, registration in 2026 is usually not required.

Advantages and disadvantages of the GbR

Frequently asked questions (FAQ)

Can I start a GbR on my own?

No. A GbR needs at least two partners. If you start alone, you form a sole proprietorship or – for liability protection – a one-person UG or GmbH.

Does a GbR need a business account?

Not legally, because no share capital has to be deposited. In practice a joint business account is almost indispensable: it separates business from private and makes the bookkeeping traceable in the first place.

Does a freelancer GbR pay trade tax?

No. If only freelancers join forces, the GbR counts as freelance – no trade registration and no trade tax apply. As soon as a commercial share is added, the whole GbR can become commercial.

How is profit split if nothing is agreed?

Since the MoPeG, without an agreement the split follows the participation ratio, alternatively the value of the contributions and only last per head. If you want a specific split, set it out expressly in the partnership agreement.

Do I have to register my GbR in the company register?

Only if the GbR wants to acquire registered rights – for example buying real estate or holding GmbH shares. For a pure service GbR, registration as an eGbR is voluntary in 2026.

Conclusion

In 2026 the GbR is the fastest and cheapest legal form for founder teams – ideal for freelancers and small service providers who want to start without share capital or a notary. The price is full personal liability. If you accept the risk and keep clean books from day one, the GbR gives you an uncomplicated foundation. As the business grows or gets riskier, switching to a UG or GmbH is always an option.