Starting a Business: Trade Registration, Freelancing & Taxes
Work & Business
Germany draws a fundamental distinction between two paths into self-employment: being a registered trade (Gewerbe) or a freelancer (Freiberufler). Which one applies to you has a big effect on paperwork, chamber membership, and taxes.
Freelance professions (§ 18 EStG)
Certain professions are defined by law as freelance — for example doctors, lawyers, architects, journalists, and many IT and creative professions. Freelancers only register with the tax office (via a "Fragebogen zur steuerlichen Erfassung"), don't need a trade registration, aren't automatically members of the chamber of commerce, and don't pay trade tax.
Registered trade (Gewerbe)
Most other activities — retail, hospitality, skilled trades, many services — count as a Gewerbe and require trade registration (Gewerbeanmeldung) at the local trade office (Gewerbeamt). This automatically brings membership of the chamber of commerce (IHK) or, for skilled trades, the chamber of trades (HWK) — including annual dues. Certain skilled trades also require a master craftsman qualification (Meisterpflicht) and an entry in the trade register (Handwerksrolle).
Residence permits for the self-employed
If you're not an EU citizen and want to become self-employed, you generally need a specific residence permit under §21 of the Residence Act — which usually requires a viable business plan, sufficient funding, and evidence of economic benefit or regional demand. That's a notably different process from a standard work permit as an employee.
VAT (Umsatzsteuer)
Most businesses have to charge VAT on their invoices and remit it to the tax office. Businesses with very low annual revenue can use the small-business exemption (Kleinunternehmerregelung, §19 UStG) and are then exempt from charging VAT — the exact revenue threshold is adjusted from time to time, so check the current figure with the tax office or a tax advisor.
Then: getting found
Once your business is officially registered, you can list it on Yabino so the Persian-speaking community in Germany can find you.
Not legal advice
This guide is for general orientation only and does not replace individual legal, tax or immigration advice. Rules change and depend on your personal situation — always confirm current requirements with the responsible Ausländerbehörde, Standesamt, Finanzamt or a licensed advisor before making decisions.
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