Checklist after company formation
8 must-dos once your German company is registered
In our previous articles we talked about registering companies in Germany and what difficulties foreign entrepreneurs have to deal with in the process. In this article we’ll tell you about the important steps you need to take right after the company is registered. Many entrepreneurs don’t know about them or ignore them, which can lead fines and problems with authorities. To avoid that, you should be informed and ready to take action. Our article will help you with that.
Our company, Nexus-Europe GmbH, assists foreigners with starting a developing their own business in Germany and moving to Germany through business immigration or the EU Blue Card.
Get a residence permit in Germany through business immigration or a Blue Card: email@example.com
The information in this article will be true for UGs and GmbHs as well as for tradespeople (Gewerbetreibende).
Watch our video on must-dos after the company is formed:
Here are the things you should take care of once your company in Germany is registered:
1. Tax number (Steuernummer)
It should be applied for right after the company is formed. Obtaining the tax number for a company with a foreign managing director is a very important but complicated procedure. Not even all tax advisers and tax offices themselves are familiar with it. The tax offices often have additional questions and contact the entrepreneur several times during processing of the application.
In some cities, the tax offices tend to visit the company at their registration address without prior notice to make sure the company actually exists. They may also request a personal interview with the managing director.
Obtaining the tax number without the assistance of a qualified tax adviser who is familiar with the specifics of work with foreigners might be impossible. If you register a company in Germany through us, our reliable partner tax adviser takes care of the whole process: filling out application forms, applying for the tax number, communication with the tax office. We don’t leave you to face the authorities alone.
2. VAT number (Umsatzsteuer Identifikationsnummer, USt-IdNr)
If you plan providing your services or trading with other EU countries, you need a VAT number. It makes sense to apply for it together with the tax number to save time but can also be done later. However if the managing director is managing the company from outside of Germany, it might be required that the application for the VAT number is made through another authority than the tax number. A good tax adviser will know all the nuances and will take care of the process.
3. Business registration (Gewerbeanmeldung)
Business registration (or trade registration) has to be made after the company is registered but before any business activity can be started. In some cases the tax office requests to provide them the business registration to issue the tax number, so it is better not to delay the application for it.
4. Permits and licenses
Some of business activities require special permits or licenses (erlaubnispflichtige Gewerbe). Those permits have to be obtained before you apply for business registration.
Please note that there are also some activities that don’t require a special permit however are considered the so-called “monitored” activities (überwachungsbedürftige Gewerbe). In such cases, right after the business registration is made the credibility of the business has to be verified by respective authorities.
5. Chamber of Commerce membership
When registering a company, you automatically become a member of the respective Chamber of Commerce. You don’t need to apply for it separately but you need to be aware of that. The membership is obligatory. The costs start from 40 euro a year depending on the city and your company income.
You need to decide who will be taking care of accounting for your company. It is especially important for regular businesses (as opposed to small businesses) that plan to issue VAT invoices. In this case, as a rule, for newly formed companies you need to file VAT returns monthly. Apart from that, UGs and GmbHs have to file annual reports. We have an article on the German taxes, please check it out.
In Germany, it is common to outsource accounting, especially for smaller businesses. It is important that the accountant is experienced in working with foreigners since international work has many nuances. If you form a company through us, we can introduce you to a reliable and experienced accounting company who can take care of those matters for you.
7. EORI number
If you have an import-export activity, you’ll need an EORI number. You can apply for it once the company is registered. It is possible to make the application before the tax numbers are obtained, however please note that in this case it is important to send the information about them to the authority once the tax numbers have been issued.
8. Transparency register (Transparenzregister)
All German companies that are registered with the Commercial register have to also be registered with the Transparency register. Companies are obliged to report full information about their beneficial owners. It should be done online at the official portal of the Transparency register.
Nexus-Europe GmbH assists foreign entrepreneurs with starting and developing their own successful business in Germany and moving to Germany through business immigration or the EU Blue Card. And if you don’t want to study all the details and nuances, we can help you fully launch a business of any scale: from a small trading company to a global manufacture. All projects are guided by certified Project Management Professionals which guarantees preciseness and effectiveness.
Contact us to open a business in Germany and move to Germany: firstname.lastname@example.org
This document (and any information accessed through links in this document) is intended for general informational purposes only and is not a substitute for professional advice. Each situation is unique and professional advice should always be obtained before taking or refraining from any action.