How to Start a Business in Germany as a Foreigner: Step-by-Step Guide
Want to start a business in Germany as a foreigner? Learn the step-by-step process, legal requirements, and tips to register your company successfully.
3/22/20252 min read


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!
Herzig Your gate to Germany
Expert consulting for your business in Germany.
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