Entrepreneurs who want to set up a company in Germany can take advantage of the country’s many investment opportunities in plenty of industries. Every company needs to obtain a business license in Germany to conduct its operations. Some businesses, depending on the types of activities undertaken, require additional special permits or licenses. Our lawyers in Germany are ready to assist entrepreneurs who need these licenses for their businesses.
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Who needs a business license in Germany?
The business license in Germany refers to the registration required to operate a business legally. The business license also includes other special permits or additional licenses that may be required for certain professions. A business license has the same meaning as the trade license in Germany.
| Quick Facts | |
|---|---|
| Who needs a business license | Individuals/companies engaging in trade (retail, construction, etc.); some liberal professions may also require one. |
Definition of business license in Germany | Same as the trade license (“Gewerbeerlaubnis”), required to operate a business legally in Germany. |
Special permits required in Germany | Necessary for sectors like healthcare, construction, food, tourism, finance, and import-export. |
| Issuing authority | Local authorities or relevant federal institutions (e.g., BaFin for financial services). |
| Import-export sector | Requires sector-specific licenses and mandatory VAT registration. |
| Banking license | Issued by BaFin; subject to capital requirements and type of services under German Banking Law. |
| Cross-border banking permit | Non-EEA institutions must apply to BaFin under Article 32 of German Banking Law to operate in Germany. |
| Gambling license | Available under the German Interstate Treaty; Schleswig-Holstein issues licenses for online gambling platforms. |
| Restaurant licensing | Requires trade license, food safety certification, Health Dept. approval, liquor license, and possibly GEMA license for music. |
| Restaurant safety compliance | Must pass fire inspection and manage food/oil waste per environmental laws. |
| Construction permits | Required in addition to a trade license; must comply with zoning laws and public safety regulations. |
| Fast-track construction permits | Available, but full legal compliance is still necessary. |
| Licensing for liberal professions | Some may need business registration depending on activity nature (e.g., doctors, lawyers). |
| Music license (GEMA) | Needed if copyrighted music is played in a business (e.g., restaurant, retail). |
| Legal assistance available (Yes/No) | Yes, our German law firm can assist with all steps, including license applications, VAT registration, and compliance. |
Companies or individuals who want to sell goods, operate a retail business or engage in any other trading activities such as retail, manufacturing, hairdressing, or construction may need additional permits.
Additionally, some individuals engaging in liberal professions (doctors, lawyers, journalists, etc.) need to apply for a business license in Germany, depending on the nature of their activities.
Our German lawyers can explain more about these licenses.
Obtaining a special permit in Germany
As mentioned above, some German companies require special permits or licenses in order to conduct business activities. These licenses are issued by the relevant authority in the country or by the local authorities. The country’s relevant authority or local authorities issue these licenses.
Special business licenses in Germany apply to a variety of industries, such as healthcare, construction and real estate, tourism and hospitality, and food and beverage.
Companies in the import-export sector must also apply for various licenses. They are also required to apply for German VAT registration.
The banking license in Germany
The first step towards obtaining a banking license in Germany is to meet the start-up capital requirements to set up a bank. For each type of financial institution there are specific provisions depending on the services they will provide according to the German Banking Law.
The banking license can be obtained with the federal financial authority in Germany, BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht). According to the Banking Law in Germany all financial institutions engaged in investment and contract broking services, portfolio management services, own account trading, money transmission services, foreign currency dealings and credit card services are required to apply for a special license in order to be allowed to function.
Our team of German lawyers can help you obtain this license in case you want to open a bank. Also, in case you want to open any other business you will need a bank account in Germany and our lawyers can help you open one.
The special license for cross-border financial institutions in Germany
Foreign financial institutions wanting to provide banking services in Germany are required to apply for a special permit with BaFin before commencing their activities according to Article 32 of the German Banking Law. Banks and other financial institutions from non-EEA countries are requested to open subsidiaries or branch offices in Germany in order to offer their services to the citizens.
The special license for cross-border banking activities will allow the foreign bank or financial company to provide money lending and transmission services.
The gambling license in Germany
Starting in 2012 Germany has enabled a gaming treaty that allowed online gambling facilities to operate. This way, online casinos can now apply for a special license in Schleswig-Holstein. The treaty allows an online casino to obtain an unlimited number of special permits for operating web-based gambling activities.
Licenses for restaurants in Germany
Opening restaurant requires several permits and licenses to comply with national and local regulations. The first step in obtaining the business license in Germany is registering with the local trade office (Gewerbeamt) and obtaining a certificate to carry out various administrative tasks.
Additionally, restaurant owners and employees handling food must complete food safety training. Following this training, the restaurant will obtain approval from the Health Department and can operate effectively.
Aside the trade license in Germany and approval from the Health Department, the restaurant must obtain a concession license, especially if serving alcohol. This license is granted by the local Ordnungsamt (Department of Order). Aside this license, if the restaurant serves alcohol, it must obtain a liquor license.
Restaurants must pass a fire safety inspection and may need fire suppression systems. A Music (GEMA) license is needed if the restaurants is playing copyrighted music. Permissions for handling and disposing of waste, especially items like oils or fats, are necessary due to the significant waste generated by restaurants.
Each of these steps is essential to ensuring a legally compliant and safe restaurant operation in Germany.
Our lawyers can help restaurants obtain all the necessary business permits in Germany.
Construction permits in Germany
Construction companies need special permits to conduct their business activities, aside the trade license in Germany, which is the fundamental license for legal business operations.
Construction projects need to adhere to the zoning regulations, state and other public laws. Building permits must be obtained before the construction projects begin.
The process of obtaining a construction permit can be lengthy, but the state regulations provide fast-track procedures to accelerate approval. However, even with fast-tracking, the project must still fully comply with all relevant laws.
Our German lawyers can assist with the construction permits.
Statistics about German industries
Our attorneys in Germany have prepared some interesting statistics about the contributions of various business sectors to Germany’s total GDP for the year 2023:
- The services sector contributed 69.6% to the GDP;
- 24.3% of Germany’s GDP is attributed to the production industry (excluding construction);
- Agriculture, forestry, and fishing only accounted for 0.7% of the GDP.
We can also help with VAT registration in Germany. If you need more assistance in tax-related matters, we can recommend our partner accountants in Germany.
You can request information about the latest provisions of the Civil Code from our German lawyers.
For complete details about obtaining special licenses and permits in Germany you can contact our German law firm. Our team can also help you open a limited company in Germany.