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.