How to Start a Business in Germany as a Foreigner (Step by Step)

The step-by-step

Below are the eight steps in order. Each is a discrete task, and several can be done remotely with the right preparation. Where a step has a known sticking point for non-residents, we flag it.

Step 1: Confirm you're allowed (no residency requirement)

Any foreign national, whether EU or non-EU, resident in Germany or living abroad, may own and direct a German company. As Germany Trade and Invest puts it, the nationality and residence of the shareholders and managing directors are "irrelevant". What the company needs is a German business address and a local representative. Crucially, that "local representative" is an operational and service point, not a residency requirement on the owner or director: owning and managing is separate from the right to enter and stay (§4 AufenthG).

Step 2: Choose the legal form

Most foreign founders choose between two forms. The GmbH offers limited liability with €25,000 share capital, of which at least €12,500 must be paid in before registration (§5(1), §7(2) GmbHG). The UG (haftungsbeschränkt) can be formed from €1, but it must be fully paid in, in cash, with no contributions in kind (§5a GmbHG).

For a full head-to-head, read our guide on GmbH vs UG: which to choose.

Step 3: Prepare your documents (passport, German address, apostille/translation)

For individual founders, you need a valid passport or ID for each shareholder and each director, plus the German business address. A corporate foreign shareholder needs more: a current foreign commercial-register extract, the parent company's articles, and proof of signing authority. These typically require an apostille (for Hague Convention states) or legalisation (for non-Convention states), plus a certified German translation by a sworn translator. Getting these documents prepared early avoids delays at the notary stage.

Step 4: Notarisation: in person, video, or power of attorney (the eID trap)

A German notary is mandatory for a GmbH or UG. The notary notarises the articles and files the Handelsregister application electronically (GmbHG §2). Video notarisation has been possible since 1 August 2022 (the DiRUG reform) for cash formations, but the notary must verify identity through a recognised electronic ID (eID). Accepted are the German ID card, the eID card for non-German EU and EEA citizens, and electronic residence permits for third-country nationals. As the law is applied, "a German passport does not meet these requirements".

This is the trap: a non-resident third-country national holding only a passport cannot use the online procedure. The practical routes are to appear in person, or to sign a notarised and apostilled power of attorney abroad so that someone can act for you at the German appointment. Do not assume you can form your GmbH "100% online from anywhere".

Step 5: Open the bank account and pay in capital (the real bottleneck)

Open a German business account for the "GmbH in formation", deposit the share capital, and obtain proof of payment. This must happen before the Handelsregister entry (§7(2), §8(2): each share at least 25% paid, total at least €12,500). This is where non-resident formations most often stall. Traditional banks frequently demand in-person identification and KYC. Some direct banks and fintechs accept non-residents via VideoIdent, which is available outside Germany, whereas PostIdent can only be completed in Germany. Plan this step early. For the detail, see our guide to opening a business bank account for non-residents.

Step 6: Handelsregister entry (via the notary)

The notary submits the application electronically to the Handelsregister at the competent local court. Until the company is entered, it does not legally exist (§11(1)), and anyone acting in its name before entry is personally liable (§11(2)). The first-entry fee is €225 (since 1 June 2025; it was previously €150).

Step 7: Gewerbeanmeldung (trade office)

Before operations start, you must notify the competent local trade office (Gewerbeamt) under GewO §14. As Germany Trade and Invest puts it, "the competent local trade office must be notified before business operations are started". The fee is typically around €20–60, depending on the municipality.

Step 8: Finanzamt, VAT and Transparenzregister

Within one month, file the Fragebogen zur steuerlichen Erfassung electronically via ELSTER (AO §138). The Finanzamt then issues the tax number and, on application, the VAT identification number (USt-IdNr.) for EU and cross-border trade. You must also file the Transparenzregister beneficial-owner report, mandatory since 2021. Entry is free, but failure to file carries fines of up to €150,000.

The visa question, properly: §21 AufenthG (relocation only)

A residence permit matters only if a non-EU founder wants to physically live in Germany to run the business. EU and EEA nationals need nothing, under freedom of establishment, and may pursue self-employment under the same conditions as Germans.

For a relocating non-EU founder, §21(1) AufenthG grants a self-employment permit where there is an economic interest or regional need, the activity is expected to have positive economic effects, and financing is secured by own capital or a loan commitment. Applicants over 45 should show adequate old-age pension provision (§21(3)). Nationals of Australia, Canada, Israel, Japan, New Zealand, South Korea, the United Kingdom and the United States may enter visa-free and apply from within Germany. For the full pathway, see our page on the self-employment visa for non-EU founders. Immigration questions are best confirmed with an immigration lawyer.

What the fees actually look like

The figures below are verified as of 10 June 2026. They cover the capital and the main official charges; for a full euro breakdown, see the German company formation pillar.

The two things that actually trip foreigners up

Two practical realities catch out non-resident founders more than any rule about ownership.

The first is the online-notary eID trap. Video notarisation needs a recognised electronic ID, and a plain passport does not qualify. Many non-residents therefore use a notarised and apostilled power of attorney, or simply appear in person. Do not plan around forming "entirely online from abroad" unless you hold a qualifying eID.

The second is the bank-account hurdle. The capital must be deposited before the Handelsregister entry, and banks often demand in-person KYC. Some fintechs accept VideoIdent from abroad, but availability varies and approval is not guaranteed. Treat the bank account as a critical-path item, not an afterthought.