Business advertisement; Business registration

Before commencing self-employed commercial activity, it is generally sufficient simply to register the business with the relevant Chamber of Industry and Commerce, Chamber of Skilled Crafts, or the local authority in which the activity is carried out (Section 14(1), first sentence, of the Trade Regulation Act – GewO). Where vending machines of any kind are installed as part of a self-employed business, the notification must be made to the competent authority for the principal place of business (Section 14(3) of the Trade Regulation Act (GewO)).

You are also required to notify the authorities of the commencement of operations at a branch or a dependent branch, as well as the relocation of the business (Section 14(1), second sentence, of the Trade Regulation Act (GewO)). If you relocate your business to another local authority area, you must register your business at the new location. The competent authority will forward the details from the business registration to the authority at the previous location. In addition, the business owner is no longer required to deregister at the previous location.

A business is any self-employed activity that is not socially undesirable, is aimed at making a profit and is intended to be long-term, with the exception of primary production (e.g. agriculture), the liberal professions (high-level scientific, artistic and literary activities, as well as personal services requiring higher education) and the mere management and use of one’s own assets.

Any natural person (including, for example, partners in partnerships) or legal entity that commences a business (main place of business), or that commences the operation of a branch or a dependent branch, is required to register.

In the case of trades requiring a licence (e.g. estate agents, the hospitality industry) and skilled trades, a licence or registration in the register of skilled trades is required in addition to the business registration.

Although certain trades do not require a licence, they are subject to special official supervision (so-called ‘trades requiring supervision’ pursuant to Section 38 of the Trade Regulation Act (GewO)). The following sectors are affected:

1. The purchase and sale of
   : a) high-quality consumer goods, in particular consumer electronics, computers, optical products, cameras, video cameras, carpets, and fur and leather clothing;
   b) motor vehicles and bicycles;
   c) precious metals and alloys containing precious metals, as well as goods made of precious metals or alloys containing precious metals;
   d) gemstones, pearls and jewellery; or
   e) scrap metal, insofar as it is not covered by point (c),
   by businesses specialising in the trade in second-hand goods;
2. Provision of information regarding financial circumstances and personal matters (credit reference agencies, private investigation agencies);
3. Arranging marriages, partnerships and acquaintances;
4. Operation of travel agencies and accommodation brokerage;
5. Distribution and installation of building security systems, including locksmith services; and
6. Manufacture and distribution of special theft-related opening tools.

When a business requiring supervision is registered, the business operator’s reliability is checked without delay. The applicant is therefore obliged to apply for a certificate of good conduct (Section 30(5) of the Federal Central Register Act) and an extract from the Central Trade Register (Section 150(5) of the Trade Regulation Act) for submission to the authorities.Foreign
applicants are required to provide comparable evidence of good character (an official certificate of good conduct or character, an extract from the criminal record of their home country, or an equivalent document). If, on the basis of the foreign national’s previous residence, it can be assumed that the aforementioned certificates and evidence no longer contain, or do not yet contain, facts relevant under trade law, the requirement to submit the foreign or German certificates may be waived.

It is not compulsory to register itinerant trading activities for which an itinerant trading licence is required. However, there is a notification requirement for certain activities that do not require a travelling trade licence (e.g. the sale of printed matter in public places, the sale of food from non-fixed sales outlets) (Section 55c of the Trade Regulation Act (GewO)).