Freiberufler: the genuinely free path
If you qualify as a Freiberufler — the catalogue professions covered in our Freiberufler vs. Gewerbe guide — starting up costs nothing in government fees. You report directly to the Finanzamt by filing the Fragebogen zur steuerlichen Erfassung, which carries no filing fee, and you skip the Gewerbeanmeldung entirely, since trade registration only applies to commercial trades under §14 of the Gewerbeordnung.
The only realistic costs at this stage are optional: a consultation with a Steuerberater if you want one, and a business bank account, covered further down.
Registering a Gewerbe: €15–€65
A Gewerbeanmeldung (trade registration) is required for sole traders, partnerships and commercial activity that doesn't qualify as a Freiberuf. The fee is set locally by each municipality rather than nationally, so it varies by city — typically landing somewhere between about €15 and €65, with €30 a reasonable average.
| City | Typical fee |
|---|---|
| Berlin | Around €26 in person, or €15 online |
| Hamburg | Around €20 |
| Munich | Around €47 |
| Stuttgart | Around €54 |
If your trade is regulated, budget an extra roughly €13 each for an extended certificate of good conduct (erweitertes Führungszeugnis) or a commercial register excerpt, if either is required for your specific activity.
Forming a UG (haftungsbeschränkt): roughly €350–€500
A one-person or small UG using the standard template articles of association (Musterprotokoll) is the cheapest route into a limited-liability structure. Based on current notary fee schedules under the Gerichts- und Notarkostengesetz (GNotKG):
- Notary certification: roughly €105–€165, depending on the number of shareholders.
- Commercial register entry: a fixed €225 for a cash contribution.
- Gewerbeanmeldung: the same €15–€65 municipal fee as any other trade registration.
Altogether, a simple UG typically forms for somewhere around €350 to €500. The Musterprotokoll only covers straightforward cases — a single founder or up to three shareholders with standard terms. Anything more bespoke requires custom articles of association, which costs substantially more in notary fees.
Forming a GmbH: roughly €800–€3,000, plus capital
A GmbH follows the same notary-plus-register process as a UG, but the notary fee scales with the much larger share capital, and most GmbH founders end up with custom articles of association rather than the template.
- Notary fees: generally starting from around €1,050 for a standard GmbH, rising with share capital and the complexity of the shareholder agreement.
- Commercial register entry: €225 for a cash contribution, or €360 if contributions are made in kind (Sacheinlage).
- Gewerbeanmeldung: around €30–€60, since a GmbH is automatically treated as a commercial trade.
Published estimates for the full one-time formation cost — not including the share capital itself — range from roughly €800 for the simplest Musterprotokoll cases up to €3,000 or more once a shareholder agreement, multiple founders or non-standard profit-sharing terms are involved.
The €25,000 share capital is not a fee. It's money the company itself holds as its starting assets. At least half, €12,500, must be paid in before the company can be entered in the commercial register — the rest can follow later. See our GmbH, UG and sole proprietorship comparison for how that capital requirement weighs against the other structures.
Costs that apply almost regardless of structure
Business bank account
Several digital-only providers offer free business accounts to freelancers and sole traders, while traditional banks almost always charge a monthly fee for any account type. A UG or GmbH typically cannot access the free freelancer tariffs at all, since most providers restrict those to natural persons — budget roughly €5 to €15 a month for a standard business account once you've incorporated.
Chamber of commerce dues (IHK or HWK)
Anyone with a Gewerbe is automatically a member of their local IHK (or HWK for craft trades), but membership isn't automatically a cost:
- A small trader not entered in the commercial register pays nothing at all while profit stays at or below €5,200 a year.
- A new founder registered as a natural person (not a UG or GmbH) with an expected annual profit under €25,000 pays nothing in their first two years, then only the minimum base contribution (Grundbeitrag, roughly €40 a year) in years three and four.
- A UG or GmbH is entered in the commercial register from day one and does not qualify for this grace period, so chamber dues — the Grundbeitrag plus a small levy on profit — apply from the start.
Certified translations
If any incorporation document — an ID, a foreign qualification, a marriage certificate needed to confirm a shareholder's identity — isn't already in German, a sworn translator will need to certify it. Costs vary by language, length and translator, so get a quote for your specific documents rather than assuming a fixed figure.
Costs that only apply to non-EU founders
EU, EEA and Swiss citizens have freedom of establishment in Germany and pay nothing for the right to start a business here. Founders from outside the EU/EEA generally need a residence permit for self-employment (Aufenthaltserlaubnis zur selbstständigen Tätigkeit) under §21 of the Residence Act (AufenthG). The application fee is generally up to around €100, set by the local Ausländerbehörde within a national fee schedule, plus small incidentals such as a biometric photo taken on-site.
The full comparison
| Structure | Typical one-time cost | What it covers |
|---|---|---|
| Freiberufler | €0 | Finanzamt registration only, no trade licence needed |
| Gewerbe (sole trader / GbR partner) | €15–€65 | Municipal Gewerbeanmeldung fee |
| UG (haftungsbeschränkt), Musterprotokoll | €350–€500 | Notary certification, commercial register entry, Gewerbeanmeldung |
| GmbH, simple Musterprotokoll case | €800–€1,200 | Notary certification, commercial register entry, Gewerbeanmeldung |
| GmbH, custom articles of association | €1,500–€3,000+ | Same as above, with more extensive notary drafting work |
A GmbH also requires €25,000 in registered share capital (at least €12,500 paid in before registration), which is retained by the company rather than spent on formation itself.
Frequently asked questions
Is it really free to register as a Freiberufler in Germany?
Yes, as far as government fees go. Freiberufler file the Fragebogen zur steuerlichen Erfassung with the Finanzamt at no cost and skip the Gewerbeanmeldung, so there is no trade registration fee either.
How much does it cost to register a Gewerbe in Germany?
Municipal fees generally range from about €15 to €65, averaging around €30. The exact amount is set locally, so it depends on the city where you register.
Is a UG actually cheaper to set up than a GmbH?
Yes, when both use the standard Musterprotokoll. A simple one-person UG typically costs roughly €350–€500 to form, versus roughly €800 and up for a comparable GmbH, mainly because GmbH notary fees scale with the larger €25,000 share capital.
Do I have to pay the full €25,000 GmbH share capital upfront?
No. At least half, €12,500, must be paid in before the company can be entered in the commercial register, with the remainder due later. This capital becomes the company's own assets rather than a fee paid to anyone.
Do EU citizens pay for a residence permit to start a business in Germany?
No. EU, EEA and Swiss citizens have freedom of establishment and need no residence permit at all. The permit fee, generally up to around €100, only applies to founders from outside the EU/EEA.