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Types of new businesses In Germany, there are two ways of setting up a business, either commercially or freelance. Here you can find out which business type suits your plans. Self-employed or freelance? In Germany, there are two ways of setting up a business . You are either self-employed or a freelancer. This depends on the occupation you are engaged in. Your status of being self-employed or a freelancer has an impact in regard to certain formalities as well as the legal structure of your business. Working on a self-employed basis If, for example, you would like to become self-employed with a craft or retail business, you must register your business – and you must do so in the location of your future headquarters. The Platform for Founders (External link) explains what you have to take into account. For some occupations, you must meet certain admission requirements . These are referred to as “occupations subject to prior authorisation” (erlaubnispflichtiges Gewerbe) . “Subject to authorisation” may mean i. a. that you will have to obtain certain types of approval, apply for a licence or provide proof of qualifications. This applies, for example, to craft businesses, financial service providers or care services, but also to a whole range of other occupations. You can find out on which sectors this applies to on the start-up portal (External link) . The BMWE-Behördenwegweiser (External link) also shows you where you can complete these formalities in your region. Working as a freelancer

Advisory services Get advice from experts: Numerous advice centres and information services provide support in your area. Good advice can help contribute to the success of your business. Make sure to take advantage of the opportunity to get support from an expert. In Germany, there are many public information centres that can help you set up your business. You can also find a general list of contact persons on the start-up portal (External link) . The Authority Finder (External link) ( Behördenwegweiser) will also tell you which information centres are available in your area. You can also hire a private consulting firm to help you prepare and embark on your first entrepreneurial steps. Some German federal states provide grants towards the costs incurred for this kind of consultation. It is important that your place of residence and your company's registered office are in Germany. The start-up portal (External link) will tell you where to apply for this grant. Practical tips for business consultations in Germany It is sensible to be well-prepared for the consultation. Do not be afraid to address business topics immediately; in Germany, people tend to prefer dealing with specific questions rather than excessive small talk. Advisory services for entrepreneurs with a migratory background Addresses of regional and national information centres, specifically for entrepreneurs with a migratory background, can be found on the start-up portal in the “ Setting up a business as a person with

Financing & funding programmes Do you already know which costs you have to bear when setting up your business? Find out here which options you have to finance your plans. You already know how much money you will need to set up your business? Now is the time to raise the necessary capital. The Platform for Founders (External link) has an overview of options for this endeavour. Equity and bank loans In financing, there is generally made a distinction between equity and borrowed capital. Your equity (External link) is the financial cornerstone of your business. It includes your personal assets (e.g. cash and savings) and objects that become part of your business (e.g. machinery and equipment). Generally, this means that the more funds you raise on your own have, the more independent you are. For banks, equity serves as security. Ideally, equity should amount to at least 20 percent of your overall capital. Surveys indicate that “insufficient securities” and “too little equity” are the most common reasons why banks reject a loan application. You can obtain loans from a regular bank or a savings bank ( Sparkasse ). The type of bank and loan best suited for your business depends on the amount of money you need, as well as how long you will need it for. You could find a suitable financial institution on the Gründerplattform (External link) . In general, the longer the loan period and the higher the risk (assessed by your bank), the higher the interest you will have to pay for the loan

The business plan Goals, financing and realisation – the business plan is your most important tool to convince partners and credit institutions of your company’s vision. You have found your business idea and want to put it into practice? Then you should prepare your start into self-employment . The most important instrument for this is the business plan. A business plan helps you to plan your project step by step. It is crucial if you want to convince someone of your business idea and plans – banks, for example, use the business plan to check whether they will grant you a loan. Advice to improve your business plan Get advice beforehand. An advisor can give you helpful tips on how to improve your business plan. You can find out how to write your business plan, what belongs in the plan and what else you need to consider on the pages of the start-up portal (External link) . You already know what should be in your business plan? Then the Platform for Founders (External link) will show you how to write it step by step. Are you wondering whether your business idea has been sufficiently thought through? Are you unsure of what your financial planning should look like? Then have a look at the checklists on the start-up portal (External link) . Advisory service Video: Setting up a business in Germany Information on the web Start-up Portal Checklist for your business plan IHK Berlin Short film summarizing the most important information about your business plan in a visual way Checklist

Recognition procedure How does the recognition procedure work? During the recognition procedure, the competent authority checks whether your qualification is equivalent to the German reference occupation. The recognition process determines the comparability of your qualification. Recognition is not always required - it depends on your profession and your qualification. In the section “ Who needs recognition? ”, you can find out whether the process applies to you. How does the recognition procedure work in Germany? During the recognition procedure , the respective competent authority in Germany checks whether your foreign qualification is equivalent to a German one or whether there are substantial differences. The procedure is also known as “equivalence assessment” ( Gleichwertigkeitsprüfung ). The competent authority assesses, generally within three to four months, your documents as soon as they have all been submitted. To find out exactly how the recognition procedure works and where you can get specific information about your profession in Germany, please use the Recognition Finder (External link) in the skilled-worker section of the “Anerkennung in Deutschland” portal. There you have the option to immediately start finning in your online application, if available. On the “ Anerkennung in Deutschland (External link) ” portal, you will also learn how the digital application process works and what you need to consider when filling out the application. Result of the recognition

Who needs recognition? Do I need recognition? Depending on your country of origin, profession and desired residence title, the recognition of your foreign qualification may be necessary. Find more detailed information below. Regulated professions You can only work in regulated professions in Germany if you have a very specific qualification. This, for example, applies to many professions in the fields of health care, legal advice, and teaching in state schools. There are also regulations for certain master craftworkers who run a business. In engineering professions, there is a regulation if the professional title of “engineer” is required for the occupation. To find out whether your profession is regulated in Germany, please use the Recognition Finder of “ Anerkennung in Deutschland (External link) ”. If you wish to work in one of these regulated professions in full capacity, your will generally require the recognition of your foreign qualification, regardless of your country of origin. For non-EU nationals, the full recognition is also a requirement for certain residence titles, such as the visa for qualified professionals or for most cases of the EU Blue Card . Moreover, no points must be scored for the opportunity card if the full recognition has been acquired. The recognition occurs in the framework of a so-called recognition procedure ; you will find detailed information on this in our “ Recognition procedure " section. In regulated professions, a licence to practise is

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Work contract If you successfully applied for a job, the employment contract regulates the basic conditions of your future employment relationship. Find out what you need to pay attention to. In Germany, a written employment contract is the standard. It should contain information such as salary and holiday entitlement. Carefully read the contract before signing it. If there is something you do not understand, there is no need to fret: ask the HR department or the company's human resources manager. Make sure that all information is correct. What your employment contract should include Your employment contract must include the following information: Name and address of the employer and the employee. Inception of the contract: date on which you start as an employee of the company (i.e. when does the contract’s validity commence?). Time limit: is your contract limited to a certain period of time? If it is, when does the contract end? Probation period: how long is the probation period? This is the period in which you or the company can terminate the contract on short notice. Place of work: where are you going to work? If you will be working in different locations, it should be stated in the contract. Job description: what will your tasks in the company entail? Remuneration (salary): how much money will you earn for your work? Are there any additional allowances or bonuses, for example on Christmas or for working on weekends? When does the company pay your salary – at the end or at