Guide: Competent authorities and offices in Germany

Economic or business development agencies promote entrepreneurial projects in a region. They offer advice on planning and preparing a start-up, arrange contacts or help in finding a suitable location. The aim is to strengthen the economic power of a region.

Especially if your start-up project creates jobs or has innovative power, the local business development agency is often happy to help you.

There are so-called business incubators almost everywhere in Germany. They offer assistance in setting up a business.

There are general business incubators or those specifically for start-ups in certain areas (e.g. IT).

Chambers of skilled crafts keep the register of skilled crafts, establish rules for skilled crafts apprenticeship, conduct master craftsman training and examinations. In addition, they offer their members various  services.

If you want to set up a craft business, you automatically become a paying member of the Chamber of Crafts. However, only businesses that are subject to registration must be entered in the register of skilled crafts. The Crafts Code (Handwerksordnung, HwO) specifies which crafts are subject to registration.

The Chambers of Skilled Crafts also provide advice on all topics related to setting up a business.

The Chambers of Industry and Commerce (IHK) issue various certificates and attestations for commercial transactions und trade licences, set standards for vocational training, monitor compliance with them and administer examinations.

All traders automatically become members of the local Chamber of Commerce and Industry and are obliged to pay regular contributions.

If you want to become self-employed in professions such as real estate agent, property developer or loan broker, you need a trade licence from the IHK.

Other occupational fields may also require an examination by the IHK.

In Germany, the district courts keep records of companies (commercial register) and real estate (land register).

If you want to register your company in the commercial register or purchase a commercial property, the district court is responsible. But also if there is a dispute, for example because a customer does not want to pay.

The employment agencies and job centres are there to place people in work. They also pay out unemployment benefits.

If you are looking for employees, you can find them through the job centre.

Foreigners authorities are responsible for passport and residence issues and settlement permits. They also take care of the employment and integration of people who do not hold a German or EU passport.

If you have a passport from a EU member state, you have freedom of trade and freedom of establishment. This means that you can set up your own business in Germany at any time.

However, if you do not come from an EU country, you need a permit (residence permit for self-employment) under the Residence Act.

You have to submit an application to the Foreigners’ Registration Office, attaching a complete business plan and certificates. The permit will only be granted if the authorities think that your project has a chance of success and you have the necessary skills.

Members of the liberal professions are obliged to be members of their chamber,  for example, doctors, architects or  lawyers. The chambers also organize the occupation-specific pension schemes.

Similar to what the Chamber of Crafts does for craftsmen, the chambers for liberal professions monitor compliance with professional obligations, organize vocational training, take examinations and promote continuing professional development.

If you want to become self-employed in one of these  professions, you register with the Chamber of Professional Associations responsible for you. You will then receive approval from your chamber, without which you are not allowed to start self-employment. At the same time, you will be included in a directory.

Health authorities check whether hygiene regulations are being observed in certain businesses. Not only in medical facilities, but also in businesses that could pose a health risk (e.g. restaurants, tattoo studios etc.).

Anyone wishing to open a catering business or restaurant must undergo instruction on the subject of infection control at the public health office. In addition, all those who handle foodstuffs need a clearance certificate (“health certificate”) from the health office.

The task of the registration offices is to register or deregister persons, issue identity cards, passports and income tax cards.

If you want to register your business or freelance activity, you almost always have to present a valid registration certificate or identity card.

The tax offices are responsible for assessing and collecting taxes. For this purpose, they check and process tax returns.

You come into contact with the tax office as soon as you register a business. If you are a freelancer, it is even the first point of contact for registering your business.

You will receive a questionnaire from the tax office for tax registration and, as soon as you have filled it out and returned it, a tax number. You need this number for your invoices.

The tax office calculates your estimated tax and determines whether and to what extent you have to make advance payments or can have paid turnover tax (input tax) refunded.

Later, you submit your advance VAT return and your annual tax return. After that the final amount of tax you have to pay is calculated.

The trade supervisory authorities monitor compliance with occupational safety, environmental and consumer protection regulations. They work closely with the employers’ liability insurance associations.

The labour inspectorates advise self-employed persons on all questions of occupational safety and environmental protection. If you are setting up a business with special requirements, you should contact the labour inspectorate.