When setting up your own business, there are a few bits of bureaucracy you need to take care of. For business owners in Germany, one document in particular plays a key role: the trade license.

This article explains what a trade license is, who needs it in the country, and walks you through the application process step by step. We’ll also answer some of the most important questions around costs, processing times, and validity.

What’s in this article?

• What is a trade license?
  
• What do businesses in Germany need a trade license for?
  
• How can I apply for a trade license?
  
• What to do after you receive your trade license
  
• How much does a trade license cost?
  
• How quickly will I get my trade license after registering?
  
• How long is a trade license valid for?
  
• How can I get a duplicate of my trade license?
  

What is a trade license?

A trade license is an official document certifying a trade or self-employed business is registered—colloquially, it is often simply called a permit. It serves as official proof that a commercial activity has been recorded and authorized in accordance with the German Industrial Code (GewO). It is therefore a requirement for engaging in commercial activities as a freelance professional or a company in Germany. Without it, self-employed professionals in industry, crafts, and trade, as well as corporations such as a limited liability company (GmbH) or stock corporation (AG), are not permitted to offer goods or services for a fee.

The license usually appears on a formal A4 template. It states key details about the business owners and the commercial activity. A clear description of the work is particularly relevant because it guides classification by the tax office, guilds, or chambers of industry and commerce, and the appropriate professional organizations. The license further names the business’s headquarters, number of employees, and whether it is run as a main or secondary job.

What do businesses in Germany need a trade license for?

Across the country, all ventures wishing to engage in commercial activities have to hold a trade license. This is especially true for operations from fixed premises, including all so-called “stehende Gewerbe,” which are businesses with a fixed place of business.

A business must obtain a permit as soon as operations begin, whether newly incorporated, opening a new branch, or taking over existing activities. You also need to apply for a trade license when converting a sole proprietorship into a different legal structure. A move from the jurisdiction of one public authority to another triggers the same obligation. In that situation, the former authority recognizes the business as discontinued and the new one records it as newly registered.

There are, however, exemptions. Certain agricultural activities, as well as classic liberal professions such as doctors, attorneys, and architects, do not require a trade license. Anyone merely managing their own assets is not required to file a trade entry either. That’s because these constitute private or freelance work, rather than trade, and fall outside the Commercial Code.

How can I apply for a trade license?

Businesses in Germany seek licenses from the relevant trade office in the city or municipality where they are domiciled. Applicants request a registration document from the appropriate office. This is often handled online, via email, or over the phone. Provide the necessary details concerning the applicant, the place of operations, and the type of business.

File your application

Nowadays, lots of cities and municipalities give you the option of completing the filing via a portal. To proceed, send the completed application, together with any additional requested paperwork, by email or the relevant web portal.

Alternatively, it’s possible to file on site at your local trade office. To do this, book an appointment and bring the following documents:

• A completed registration form
  
• A valid form of ID or passport to verify identity
  
• Any special permits or approvals, such as a master craftsman’s diploma for specific handicraft ventures, or a permit for licensed gastronomy businesses
  
• A driver’s license, where applicable
  
• Any pertinent details from the Gewerbezentralregister (Central Register of Trades)
  

Pay the fee

Registering a trade incurs a fee, payable at the end of the process. Payment is usually taken immediately on site, either in cash or by card.

Your trade license is reviewed and issued

Once the submission is in, the trade office checks that all the information is correct and that there are no legal impediments to issuing a license. If the review raises no concerns, you receive your license, officially authorizing commercial activity.

What to do after you receive your trade license

You now have your trade license, though the registration protocol continues. The trade office often forwards details automatically to the following bodies:

• Tax office: You will receive a tax registration form, used to provide information on the planned work, and on your expected turnover and profits. You also have to decide whether to opt for ordinary taxation or to register for the small scale entrepreneur rule.

• IHK or HWK: Business owners are required to be members of the Chamber of Commerce and Industry (IHK) or the Chamber of Crafts (HWK). Enrollment happens automatically.

• Professional organization: Registration with the relevant occupational accident insurance association (Berufsgenossenschaften), coordinated by the German Social Accident Insurance (DGUV) is required for statutory accident insurance—sign up within one week of filing. While the trade office will notify the relevant DGUV, it is wise to contact the body directly to avoid missing the deadline. Members receive a questionnaire and an application form. The umbrella organization provides an overview of the pertinent DGUV for statutory accident insurance.

Review what insurance policies your business needs, open a dedicated account, and establish a proper bookkeeping system. Once those basics are covered, it’s important to simplify daily workflows as well. Stripe helps automate these: simplify billing with Stripe Invoicing—a solution that lets you generate and send invoices and other documents online in just a few clicks. If fast access to growth capital is needed, Stripe Capital helps you secure a loan in just a few minutes, without the usual formalities of traditional bank loans. Repayment adjusts to your revenue, so each payment scales with performance.

How much does a trade license cost?

Trade license costs in Germany are not standardized because each city or municipality sets its own prices. In practice, the rates tend to remain reasonable and are charged once during the filing procedure.

Individuals and partnerships often pay fees similar to those of legal entities, although the exact amount can vary depending on the body responsible. Additional representatives might also incur a separate charge.

Anyone looking to apply for a trade license needs to consult with their local licensing office or the website of their city or municipality to find out about specific costs.

How quickly will I get my trade license after registering?

If you are registering your trade in person at the trade office, you will typically receive the license immediately. If submitted electronically or in writing, it generally arrives within a few days. The exact timeline depends on the processing times at the appropriate office. The duration could extend if further documents or information are requested.

How long is a trade license valid for?

A trade license remains valid as long as operations continue, making it an open-ended approval. Holders have to notify the trade office of any changes to operations. That includes relocating headquarters or altering the scope of work. Report changes such as these to the authorities right away, or risk invalidating the license.

Provide notice if trading ceases. Again, notify the trade office. If you do not, the entry remains active, meaning you will still be liable for fiscal and legal obligations.

How can I get a duplicate of my trade license?

If the original goes missing, or if it becomes damaged or unusable for any other reason, you can apply for a duplicate. Contact the office that issued the original. Applying for a copy is straightforward and possible on site, in writing, or online.

A valid ID typically suffices to prove identity, along with the date of the original registration. In some cases, the trade office also requests a written declaration confirming the original is no longer in possession. Duplicates are generally subject to a fee, which varies by city or municipality.