Preparation: address, bank account, health insurance
Before any business registration, three pieces of personal infrastructure need to be in place. Skipping them will stall you later.
Address registration (Anmeldung)
The Anmeldung is the foundation of German administrative life. You register your residential address at your local Bürgeramt, and a few weeks later your tax ID (Steuer-ID) arrives by post. That number is permanent, personal, and required by nearly every subsequent step — including your registration with the Finanzamt.
Book your Bürgeramt appointment as early as you can. In Berlin, slots are notoriously scarce and often appear at short notice, so check the booking portal repeatedly and be willing to travel to a district across town.
A separate business bank account
Keep business and personal finances strictly apart. This is not merely tidy bookkeeping — it makes your annual tax return dramatically simpler, and it makes any future audit a conversation rather than an archaeology project. Most German and digital banks offer business accounts suited to freelancers.
One piece of protective knowledge worth having: a P-Konto (Pfändungsschutzkonto) is a garnishment-protected account that shields a legally defined minimum balance from seizure. It becomes relevant in the unhappy scenario where the Finanzamt or another creditor freezes your accounts over unpaid debts. You cannot set one up retroactively once an account is already blocked, so it is worth knowing the mechanism exists before you ever need it.
Health insurance (Krankenversicherung)
Health insurance is mandatory in Germany, without exception, and you will be asked to prove it. As a self-employed person you choose between:
- Public (gesetzlich): contributions scale with your income, family members can often be covered, and rejoining later is straightforward.
- Private (privat): premiums are based on age and health rather than income, which can be cheaper when you are young and healthy, but rises over time and covers each family member separately.
Treat this decision as effectively permanent. Once you move to private cover as a self-employed person, returning to the public system is difficult and in many cases impossible before retirement age. Speak to an independent insurance broker who can compare both systems against your actual situation — most are paid by the insurers, so the consultation typically costs you nothing.
The actual setup steps
With the groundwork done, the registration itself is more straightforward than its reputation suggests.
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Get a trade licence (Gewerbeanmeldung)
This step applies only if you are a Gewerbe. Freiberufler skip it entirely and go straight to the Finanzamt.
You register at your local Gewerbeamt, and in Berlin the whole process can be completed online. You will need your ID or passport, your residence permit if applicable, your registered address, and a short description of your business activity. The fee is modest — typically a small double-digit amount — and you usually receive your Gewerbeschein immediately.
Write the activity description carefully: it defines the scope of what you are licensed to do, and expanding into new areas later means updating the registration.
Expect follow-up post afterwards. The Gewerbeamt notifies the Finanzamt, the IHK or HWK chamber, and sometimes the trade association, so letters will start arriving unprompted. Some are genuine obligations; some are invoices from private companies designed to look official. Read carefully before paying anything.
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Register with the Finanzamt
Every self-employed person, freelancer and tradesperson alike, must complete the Fragebogen zur steuerlichen Erfassung — the tax registration questionnaire. It is submitted online through ELSTER, the official German tax portal, and you will need an ELSTER account with its certificate file, so register a few days before you intend to file.
The questionnaire asks you to declare:
- Your personal details and tax ID (Steuer-ID).
- The nature of your business activity and start date.
- An estimate of your expected revenue and profit for this year and next.
- Whether you are claiming the Kleinunternehmer VAT exemption.
- Your bank details for tax payments and refunds.
Be conservative but realistic with the revenue estimate: it determines your quarterly income tax prepayments. Guess too high and you tie up cash you need; guess wildly low and you may face a painful catch-up bill later.
Typically two to six weeks later you receive your Steuernummer (tax number), which must appear on every invoice you issue. If you are charging VAT, request a USt-IdNr. (VAT ID) in the same form — you need it for invoicing business clients elsewhere in the EU.
You do not have to sit idle while you wait. You can start working and issuing invoices in the meantime, noting on them that your tax number has been applied for, then add the number to every invoice once it arrives. Ask your tax advisor to check the interim invoices so they are handled correctly.
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Look into financial help
Germany funds new businesses more generously than many people realise. If you are currently receiving unemployment benefits, the Gründungszuschuss (start-up grant) from the Agentur für Arbeit can support you through your first months of self-employment. It generally requires a remaining benefit entitlement, a written business plan, and an expert assessment confirming your concept is viable.
It is a discretionary grant rather than an automatic entitlement, so speak to your caseworker before deregistering as unemployed — the sequence matters. Beyond that, look into KfW founder loans, regional Berlin programmes, and the free founder consultations offered by the IHK.
Registration checklist
- Anmeldung completed and Steuer-ID received by post.
- Separate business bank account opened.
- Health insurance active and confirmed in writing.
- Gewerbeschein obtained, if you are a Gewerbe.
- Fragebogen zur steuerlichen Erfassung filed via ELSTER.
- Steuernummer received and added to your invoice template.