Insights | From Business Idea to Market Launch – How to Set Up a Company in Germany the Right Way

Starting a business in Germany involves a number of formal, legal, and organizational steps. For international founders, the system can seem complex at first – but it’s well-structured once you know what to look out for.

This checklist guides you through the most important operational steps of founding a company in Germany – from choosing a legal form to registering with the authorities. For each item on the list, in-depth follow-up articles will be published soon – so you’ll not only know what to do, but also how to do it.

1. Define Legal Form & Company Address

   1. Choose a legal form (e.g. GmbH, UG, GbR, sole proprietorship)

   2. Set up a registered office with a valid German address (must be legally serviceable)

2. Financing & Funding Opportunities

   1. Determine capital requirements

   2. Plan equity and external financing

   3. Research funding options (e.g. EXIST, INVEST, regional/state programs)

3. Foundational Formalities

   1. Draft articles of association (for corporations)

   2. Notarization of the formation (e.g. for GmbH or UG)

   3. Open a business bank account

   4. Deposit share capital (min. €25,000 for GmbH, from €1 for UG)

   5. Register the business with the local trade office (Gewerbeamt)

   6. Register in the commercial register (Handelsregister – for corporations)

   7. Join the relevant Chamber of Industry and Commerce (IHK) or Chamber of Crafts (HWK)

   8. Register with the relevant Employer’s Liability Insurance Association (Berufsgenossenschaft)

   9. Apply for a company number (Betriebsnummer – required when employing staff)

4. Accounting & Taxes

   1. Find a tax advisor (highly recommended!)

   2. Register with the tax office (via the tax registration form – can be done by your advisor)

   3. Apply for a tax number

   4. Apply for a VAT ID (for intra-EU business)

   5. Set up your accounting system

   6. Check if the small business regulation (§ 19 UStG) applies

5. Insurance & Legal Requirements

   1. Consider liability, legal protection or business interruption insurance

   2. Fulfill data protection and legal notice requirements (especially for websites)

   3. Create general terms and conditions (AGB – optional but recommended)