Commercial register entry - when is it necessary?

If you set up a company in Germany and Employ employeessooner or later you will have to ask yourself:
Do I have to register my company in the commercial register?

Here you get a simple overview, When an entry in the commercial register is mandatory - particularly important for employers.

What is the commercial register?

The Commercial register is a public directory at the local court. It contains important information about companies, for example:

• Who thethe ownersin is

• What legal form the company has

• Where it sits

• Who is authorized to sign

When is an entry in the commercial register mandatory?

An entry is necessary if you:

1. Founding a corporationfor example:

   • Ltd.

   • UG (limited liability)

   • AG

   Here is the entry always mandatory - The company is not allowed to start without an entry in the commercial register.

2. Running a small businesswhich behaves like a "commercial enterprise". This means that

   • You have many employees

   • You have high sales

   • You use double-entry bookkeeping

   • You work with complex business processes

    Then you have to register as a so-called "registered businessman / registered businesswoman (e.K.)" be entered in the commercial register.

3. When do you NOT need an entry?

   For example, if you run a small sole proprietorship or a small business, an entry is usually not necessary.
   However, you can voluntarily make an entry - this sometimes appears more professional to business partners.