Why establish a own company?
If you want to establish your own company in Germany you will face some obstacles. From finding an idea worth working on to the name of the company, a suitable legal form and the commercial register entry, everything needs to be planned accordingly. Even though it might be worth to consider this career path. Realizing your idea and being your own boss - a goal for a lot of young people. The German federal ministry for economy and energy summed all the reasons up why it is worth to be a founder.
The German federal ministry for economy and energy offers a Step by Step plan and useful links here.
Founder‘s Week
Good to know: The German federal ministry for economy and energy organizes a week for founders every year.
The goals are to get young people enthusiastic about entrepreneurial thinking and action, encourage expertise and support creativity, to exchange ideas, experiences and opinions on the topic of founding and enable young people to be independent. Also they are introducing projects who can provide financial support for founding ideas.
You can find relevant articles and current news regarding the topic of founding a new business on the website of the DIHK (German chamber of industry and commerce).
IMPORTANT: Laws and Permissions
In Germany you have to get a permission to pursue certain careers. Also don’t forget to register your business. Not all businesses need to get a permission after Gewerbeordnung § 29 ff, so get your information first.
A summary about the (a little bit tricky) legal situation in Germany and a description about who has to get a permission you can find (in English!) on the website of the German chamber of industry and commerce, including the law it refers to as well as the responsible authorities.
Laws can change depending on the region you are in, so check twice and make sure to talk to the authorities in charge.
Contact persons in the region Nordrhein-Westfalia you can find here.
Problems and decreasing numbers of founders
Problems that often occur while founding a business can be the overwhelming bureaucracy or the lacking of starting capital. In the last few yours the number of founders significantly decreased. A relevant report why it is difficult (but not impossible!) to found a company in Germany and how to overcome some obstacles you can find here.
Checklist: How to found a company?
- Independence: The right way?
What does it mean to found an own company? - Founding idea:
Are you the right one for your idea? Do you have the know-how? - Consultation
Ask other founders for their experiences and think about getting consultation.
Take the opportunity to participate in workshops. - Business plan
Write a business plan. An orientation on how a business plan should look you can find here. - Starting capital
How much money do you need? - Financial support
Where is the money coming from? Do you need to borrow money or do you have some private capital? - Formalities
Don’t forget to register your company. In Germany you often need to get a permission. - Taxes
Ask your tax consultant and don’t forget to visit the tax office. - Insurance
Pension insurance, unemployment, sickness or accident – what is the right insurance for you? - Consultation
Find a consulter even after you established your company.
You will find helpful tips at the garage33 and TecUp close to the University of Paderborn.
