German bureaucracy,
translated into plain English.

A lawyer’s cease-and-desist letter with a fee attached, sent for things like a faulty Impressum, missing cookie banner or misused images. A German specialty every online founder should know — prevention is dramatically cheaper than response.

The opposite of the Anmeldung: telling the Bürgeramt you have moved out of Germany (or your Gewerbeamt that you have closed your trade). Skipping it can keep tax and broadcast-fee obligations running long after you leave.

Allgemeine Geschäftsbedingungen — your standard terms of business. Not legally mandatory, but heavily regulated when you do use them: clauses copied from someone else’s AGB can be invalid or trigger warning letters.

The local district court. For founders it matters as the keeper of the Handelsregister and the Partnerschaftsregister — register fees on your founding invoice come from here.

Registering your home address at the Bürgeramt — legally required within two weeks of moving in. Most other registrations depend on it: your tax ID arrives by post a few weeks later, and banks, insurers and the Finanzamt all expect it.

The Hague Convention stamp that makes a public document from one country valid in another. Foreign founders need it on documents coming in (birth certificates, company extracts); you may need it on German documents going out. Issued in the document’s country of origin — plan ahead.

The umbrella term for any German residence permit. Founders from outside the EU/EEA usually need the self-employment permit under §21 AufenthG — §21(1) for commercial businesses, §21(5) for liberal professions.

The authority that decides on residence permits, including the §21 self-employment permit. For founders it assesses your business plan, financing and qualifications — often with the local IHK consulted for an opinion.

A translation by a court-sworn translator, with stamp and certification. Authorities routinely require it for foreign birth certificates, diplomas and register extracts — budget €30–80 per page and a few days per document.

The employers’ accident-insurance fund for your industry. You must register within a week of founding even if you have no employees — contributions for yourself are often voluntary, but the registration is not.

Insurance against professional mistakes. Mandatory for some professions (lawyers, architects, PartG mbB) and demanded by many B2B clients in IT and consulting contracts before they sign.

Any formal decision letter — Steuerbescheid (tax assessment), Beitragsbescheid (contribution notice). The critical part is the deadline: most can only be contested within one month (Einspruch). Never ignore a Bescheid; the numbers become final.

The eight-digit number from the Agentur für Arbeit that you need before running your first payroll. Free and quick to get online — but without it, no employee can be registered for social insurance.

Two notary services that sound alike: Beurkundung is full notarisation of a document’s content (required for GmbH/UG formation); Beglaubigung merely certifies a signature or copy as genuine (enough for register filings and many embassy documents). Beglaubigung is far cheaper.

The residence permit for employed specialists with a high salary. It does not automatically permit self-employment — side businesses usually need separate approval from the Ausländerbehörde.

The official publication platform. Capital companies (UG, GmbH, AG) must file their annual financial statements here every year — missing the deadline triggers automatic fines from the Bundesamt für Justiz.

Your local town-hall service desk: address registration, ID confirmations, certifications. Appointments (Termine) book out weeks ahead in big cities — grab a cancellation slot early in the morning.

The betriebswirtschaftliche Auswertung — the standardised monthly profit report your bookkeeping software or Steuerberater produces. Banks and the Ausländerbehörde routinely ask for a current BWA as proof your business is viable.

Full commercial bookkeeping with balance sheet and P&L, mandatory for companies in the Handelsregister (UG, GmbH, e.K., OHG, KG). In practice this is where a Steuerberater becomes near-essential.

Personal income tax (14–45% progressive) on profits of sole proprietors, freelancers and partners. The Finanzamt sets quarterly prepayments based on the profit you estimated in the founding questionnaire — estimate honestly to avoid a brutal first-year back payment.

Tracked postal delivery with proof. German bureaucracy still lives on paper: terminations, objections and anything with a deadline should go per Einschreiben so you can prove when it arrived.

The official online portal for everything tax: the founding questionnaire, VAT pre-returns, annual returns. Activation needs a code sent by physical post, so create your account weeks before you need it.

The Einnahmenüberschussrechnung — the simple "money in minus money out" profit calculation that freelancers and small traders may use instead of full double-entry bookkeeping. Filed with your annual tax return via ELSTER.

A temporary certificate that keeps your residence status legal while a permit application is being processed. Crucial detail: check whether yours allows self-employment — not all do.

The tax office — for founders, the single most important authority. It issues your Steuernummer and VAT ID, decides whether you count as Freiberufler or Gewerbe, and collects income, trade, corporate and value-added tax.

False friend alert: in legal German, "Firma" is not the company but its registered name in the Handelsregister. The name must include the legal form — and a UG must always write "UG (haftungsbeschränkt)" in full on every contract and invoice.

The founding questionnaire filed via ELSTER within a month of starting. You declare your activity, estimate profits and choose your VAT regime; the Finanzamt answers with your Steuernummer. The single most consequential form of your founding — its estimates set your prepayments.

The privileged category for "catalogue professions" under §18 EStG — doctors, lawyers, engineers, many IT consultants, writers, translators. No trade office, no IHK fee, no trade tax. The Finanzamt decides who qualifies; e-commerce and reselling never do.

A binding deadline. German administration runs on them: one month to object to a tax assessment, two weeks for the Anmeldung, a week for accident-insurance registration. Missing a Frist usually costs money — a calendar of them is a founder’s best friend.

The legal representative of a UG/GmbH, registered in the Handelsregister and personally liable for duties like filing for insolvency on time and paying social contributions. Non-EU founders: a nominal title is not enough for the §21 visa — you must genuinely run the company.

A dedicated business account — legally required for UG/GmbH (the share capital lands here before registration), strongly advised for everyone else. Fintech banks open accounts for founders with non-German paperwork far faster than branch banks.

The official list of a company’s shareholders and their stakes, filed with the Handelsregister and updated by the notary after every share transfer. Only people on the current list count as shareholders towards the company.

The founding contract of a company, notarised for UG/GmbH. It fixes shareholders, capital, business purpose and management rules. With co-founders or investors, a bespoke version beats the standard template — changing it later costs another notary round.

Any self-employed commercial activity that is not a liberal profession — shops, e-commerce, agencies, most online businesses. A Gewerbe must register at the Gewerbeamt, joins the IHK automatically and pays trade tax above the allowance.

Where trades are registered. Filing the one-page GewA 1 form gets you the Gewerbeschein on the spot, and automatically notifies the Finanzamt, the IHK and the accident insurer for you.

Registering your trade at the Gewerbeamt with the GewA 1 form — €10–65 depending on the city, done in one visit or online. One filing notifies the tax office, chamber and accident insurer automatically.

The stamped confirmation of your Gewerbeanmeldung — issued on the spot. Banks ask for it when you open a business account, and it is your standard proof of being in business.

A municipal tax on trade profits, with rates varying by city. Sole traders and partnerships enjoy a €24,500 annual allowance and an income-tax credit; corporations pay from the first euro. Freiberufler are fully exempt.

The two health systems. GKV: income-based premiums, family co-insured free, easy to return to employment. PKV: risk-based premiums that look cheap at 30 and rise with age; switching back to GKV later is hard. Most advisors tell young founders to think twice before going private.

The act of founding a business. You will meet it everywhere: Gründer (founder), Gründungszuschuss (founding grant for the unemployed), Gründungskosten (formation costs — which a UG/GmbH may pay out of its own capital if the articles say so).

The public register of companies, kept at the local Amtsgericht. A UG, GmbH or AG legally exists only from the moment of its entry — not when the notary deed is signed. Entries are filed electronically by a notary, never by you directly.

The official printout proving your company exists, who runs it and its registered details. Banks, landlords and large customers ask for a recent one constantly — download it for a small fee at handelsregister.de.

Membership is automatic and mandatory for every Gewerbe (IHK for trade and services, HWK for crafts). They charge an annual fee, check company names, run founder advice sessions and give expert opinions on visa applications.

The legally required provider identification on every business website — name, address, contact, register number, VAT ID. Missing or incomplete Impressums are a classic target for paid warning letters (Abmahnungen).

Not a legal form but a status: a sole-proprietor trade small enough to stay out of the Handelsregister and use simple cash-basis accounting. Often confused with the Kleinunternehmer VAT rule — they are independent of each other.

The §19 UStG option to skip VAT entirely: no VAT on invoices, no pre-returns, but also no input-VAT refunds. Since January 2025: available if prior-year net revenue was ≤ €25,000 and current-year revenue stays under €100,000 (a hard real-time cap).

The 15% corporate tax (plus solidarity surcharge) that UG, GmbH and AG pay on their profits — alongside trade tax. Salaries you pay yourself as managing director are deductible business expenses taxed via payroll instead.

Health insurance is compulsory for every German resident. As self-employed you pay the full premium yourself: statutory (GKV) charges a percentage of income (minimum ~€250/month), private (PKV) charges by age and health — a near-irreversible choice worth real advice.

The certificate you receive after your Anmeldung. Keep several copies — banks, the Ausländerbehörde and the trade office all ask for it as proof of your registered address.

The simplified standard founding document for a UG or GmbH — cheaper and faster, but only available with up to 3 shareholders and exactly 1 managing director, and nothing in it can be customised.

Permanent residence. Successful self-employed founders on a §21(1) permit can apply after just 3 years; freelancers on §21(5) wait the standard 5 years.

A state-appointed legal officer — not your advisor — who certifies company formations and files them with the Handelsregister. Fees are fixed nationwide by law (GNotKG), so shopping around changes nothing except availability.

The state pension. Most self-employed are exempt, but some professions (teachers, craftspeople, artists, midwives) are compulsorily insured — and the Künstlersozialkasse covers artists and writers at half cost. Check your category early; back payments hurt.

When a "freelancer" works like an employee — one client, fixed hours, integrated in their team. If found, the client owes years of back social contributions and the relationship is reclassified. Multiple clients, own equipment and real autonomy are your protection.

Germany’s dominant credit bureau. Landlords, banks and leasing companies check it. New arrivals have no history (which reads as risk), so build it: a German bank account, paid bills and a registered address all feed it.

The capital of a UG or GmbH. GmbH: €25,000 minimum, half of it paid in before registration. UG: from €1, but it must retain 25% of annual profits until reaching €25,000. The money is not a fee — once registered, the company spends it as working capital.

Your lifelong 11-digit personal tax identification number (Steuerliche Identifikationsnummer). It arrives by post automatically after your first Anmeldung and never changes. Not to be confused with the business Steuernummer.

A licensed (and legally protected) tax professional. Fees follow an official scale (StBVV). For corporations, most founders hand over bookkeeping and annual statements; for freelancers, a one-off consultation around founding often pays for itself.

The tax number the Finanzamt assigns to your business after you file the Fragebogen zur steuerlichen Erfassung. You may only issue invoices once you have it, and it must appear on every invoice (unless you use the USt-IdNr instead).

The currency of German bureaucracy. Almost nothing happens without one, and city offices book out weeks ahead. Slots are released at midnight or early morning; cancellations appear daily — refresh often.

Records the beneficial owners of companies — anyone controlling more than 25%. Registration is mandatory after founding a company and is the step first-time founders most often forget; fines apply.

Germany’s value-added tax: 19% standard, 7% reduced. You charge it on your invoices, deduct the VAT you paid on purchases (Vorsteuer), and pass the difference to the Finanzamt — unless the Kleinunternehmer rule exempts you.

The monthly or quarterly VAT declaration filed via ELSTER, due by the 10th of the following month. The old automatic monthly duty for new businesses is suspended for foundings up to end-2026 — most founders may file quarterly if their estimated VAT stays under €9,000 a year. A permanent extension (Dauerfristverlängerung) buys you an extra month.

The EU-wide VAT identification number (Umsatzsteuer-Identifikationsnummer), needed as soon as you do B2B business across EU borders. Request it free of charge in the founding questionnaire or later from the Bundeszentralamt für Steuern.

A written authorisation letting someone act for you — collect documents, attend an office appointment, or (notarised) even sign a company formation. Extremely useful when you are founding from abroad.

The VAT you pay on business purchases. Standard-VAT businesses get it refunded by offsetting it against the VAT they collect — one reason founders with big upfront costs often skip the Kleinunternehmer option.

A form your landlord must sign confirming you actually moved in. You cannot complete the Anmeldung without it — ask for it when you sign the rental contract.