How to Start a Business in Germany as a Foreigner: Step-by-Step Guide

How to Start a Business in Germany as a Foreigner: Step-by-Step Guide

Germany is one of the most attractive countries in Europe for international entrepreneurs. With a strong economy, strategic location, and access to the EU market, many foreign investors and business owners look to establish or expand their presence here.

But how do you start a business in Germany as a non-German resident? In this guide, we walk you through each step — from choosing the right legal form to registering your company.

Step 1: Define Your Business Idea and Market

Before anything, validate your business idea and do some research:

• Who is your target audience in Germany?

• Is there demand for your product or service?

• Who are your competitors?

• Do you need a local partner?

📝 Tip: Local market research or support from a business consultant can help you understand the German market and legal landscape.

Step 2: Choose the Right Legal Form

Germany offers several legal business structures. For most foreigners, these two are most relevant:

• GmbH (Gesellschaft mit beschränkter Haftung)

– Similar to a Limited Liability Company

– Requires €25,000 share capital

– Suitable for serious, long-term business operations

• UG (Unternehmergesellschaft)

– Mini-GmbH or small startup form

– Can be started with as little as €1

– Easier and cheaper to set up

Need help deciding? We can advise you based on your business goals.

Step 3: Prepare the Required Documents

To register your company, you typically need:

• Valid passport and visa/residence permit (if applicable)

• Business address in Germany

• Company name (must be approved by local chamber of commerce)

• Articles of Association (Gesellschaftsvertrag)

• Shareholder agreement

• Proof of capital (for GmbH)

• Local German bank account

Step 4: Notarize the Company Formation

Company formation in Germany must be notarized. You will:

• Sign the Articles of Association in front of a German notary

• Submit documents for official registration

This step ensures legal validity and is mandatory.

Step 5: Register Your Business (Handelsregister & Gewerbeanmeldung)

After notarization, you must:

• Register with the Commercial Register (Handelsregister)

• Register your business at the local trade office (Gewerbeamt)

• Notify the tax office (Finanzamt)

Once completed, you’ll receive a tax ID number, and you’re officially in business!

Step 6: Open a Business Bank Account

Most banks require:

• Company registration certificate

• Proof of identity

• Articles of Association

Tip: Some banks offer English-speaking services or digital onboarding.

Step 7: Handle Tax and Accounting Obligations

German tax laws are strict. You will need:

• A local tax consultant (Steuerberater)

• Proper invoicing and bookkeeping systems

• To file monthly/quarterly VAT returns (if applicable)

• Annual financial reports

We recommend partnering with a local consultant or using a reliable service provider.

Bonus Tip: Business Visa and Residence Permit

If you’re not from the EU/EEA, you may need a business visa or self-employment residence permit. This requires:

• A viable business plan

• Proof of funding

• Demonstrating economic interest in Germany

We can support you in preparing all documents needed for the application.

How We Can Help

At Herzig – Business in Germany, we specialize in supporting international entrepreneurs and companies:

✅ Company formation (GmbH, UG, etc.)

✅ Business address and registration

✅ Legal and tax consulting

✅ Visa and residence permit support

✅ Local market guidance and strategy

👉 Want to start your business in Germany?

Contact us today and let’s turn your idea into a successful business!