Cost: How expensive is it to register a small business?

How expensive is registration from the small business? (Image: Jonas Schindler, Unsplash)

If you want to start a small business, you will come to the Commercial registration not over.

But what does that actually cost? Unlike many think, there is no fixed unit price – the fees vary depending on the city and the federal state. While some municipalities enable a business registration from 10–20 euros, others demand up to 60 euros.

But it is often not enough. Depending on the industry or location, additional costs for permits, IHK memberships or special permits may apply. If you do not inform yourself in time, you may pay more than necessary in the end.

Therefore, in this article we clarify which fees can come to you, where hidden costs lurk and how the registration lasts as cheap as possible.

Costs for registration of small business: What does the trade license cost?

Each municipality determines its own fees for the business registration. This means that the costs can be different depending on the city or region.

The general cost range for business registration moves approximately between:

• 15 to 60 euros In most communities
• 10 to 65 euros In some regions
• 20 to 65 euros according to other sources

For legal persons such as GmbHs or UGs, higher fees may occur, while sole proprietorships and partnerships can usually count on the lower sentences.

Here are some examples of registration fees in different cities:

The exact fees can be viewed on the website of the responsible authorities or asked by phone.

Additional costs for the commercial registration: What do you have to expect?

In addition to the actual registration fees, there are other potential costs that can be dependent on the type of trade.

This includes:

• Necessary documents and evidence:
  • Police certificate of good conduct: approx. 13 euros
  • Extract from the commercial central register: approx. 13 euros
  • Commercial or craft card (required for certain craft professions): 80 to 250 euros
• Special permits and concessions:
  • Delivery tax (e.g. for a restaurant concession): up to 500 euros
  • Costs for special permits depending on the industry
• Other possible costs:
  • Notarial certification (only necessary for certain company forms): Several hundred euros
  • Entry register (not necessary for small businesses, but relevant for other forms of corporate): several hundred euros

Ongoing operating costs of a small business

Registration of a small business is quickly done and usually only costs a small fee.

But what many underestimate: After the foundation, there are regular costs that exist regardless of whether the business is already running or not. Exactly these ongoing operating costs can be a challenge if they are not planned realistically right from the start.

Therefore, here is a comprehensive overview of the most important items that have to be expected.

1. Fixed costs – the ongoing expenses that always occur

Certain costs must be paid regularly, regardless of whether the company makes a profit or not. These fixed costs should therefore be taken into account when planning in order to avoid financial bottlenecks.

Trade tax – when is it due?

• Small traders only have to pay trade tax if the annual profit Over 24,500 euros lies.
• How high the tax is depends on the trade tax rate of the city or municipality. Depending on the location, this can be between 200 % and 900 % lay.

IHK or HWK contributions- compulsory membership for traders

• Each trade becomes automatically a member of the Chamber of Industry and Commerce (IHK) or Chamber of Crafts (HWK).
• Depending on the region, the basic contributions are between 0 and 500 euros per year.
• Small traders with one Annual profit below 5,200 euros in many cases can be released from the obligation to contribute.

Rent for business premises or office space

• If you rent a shop, office or warehouse, you have to calculate these costs monthly.
• Depending on the location, rents can vary significantly. In large cities, commercial space is significantly more expensive than in rural areas.
• If you work from home, you can deduct part of the rental costs under certain conditions.

Insurance – which are really necessary?

Depending on the industry and the type of company, different insurance companies are useful or even prescribed. This includes:

• Company liability insurance: Between 100 and 500 euros per yeardepending on the industry and risk class.
• Professional liability insurance (for consultants, freelancers, service providers): from 150 euros annually.
• Content insurance For company equipment: between 200 and 800 euros per year.
• health insurance: Self -employed must insure themselves independently. The contributions are between 200 and 800 euros per monthdepending on whether legal or private insurance is chosen.

2. Variable costs – the expenses that depend on the business success

In addition to the fixed costs, there are also variable expenses that change depending on the sales and order situation. These are more flexible, but still cannot be ignored.

Material and goods costs

• Anyone who sells products or offers services with material use must regularly order replenishment.
• The amount of these costs depends on the type of trade and the purchase prices.

Advertising & marketing – how much budget is necessary?

• To win customers, advertising is essential. The costs depend on which channels are used:
  • Website: Domain & hosting costs about 50 to 150 euros per year.
  • Social media advertising: Depending on the strategy between 50 and several thousand euros per month.
  • Flyer, business cards, print advertising: Unique or running costs, depending on the form of advertising.

Telephone and internet costs

• A commercial telephone and internet tariff costs between 20 and 80 euros per month.
• If you work with cloud services or special software solutions, you have to expect additional costs.

Accounting and tax advice

• The bookkeeping can be done yourself or outsourced to a tax advisor.
• Tax consultant costs: Depending on the effort between 300 and 2,000 euros per year.
• Accounting software: Between 10 and 50 euros per monthif the bookkeeping itself is managed.

Travel costs & business trips

• If you visit customers or suppliers, you have to plan benzink costs, train tickets or rental cars.
• If a company car is used, insurance, vehicle tax and maintenance are added.

3. Tax levies – which must not be forgotten

Sales tax

• Who the Small business regulation use (sales under 22,000 euros in the previous year), does not have to pay sales tax to the tax office.
• Anyone who does not use this regulation or does more sales must be regularly VAT advance registrations submit.

Income tax

• The profit from the small business is taxed with the personal income tax rate.
• Anyone who is self -employed by part -time must specify the profit in the regular tax return.

While registration of a small business is usually only associated with a small fee, the actual costs only incur in the current business.

Above all Fixed costs such as insurance, IHK contributions and tax taxes must be calculated from the start. Anyone who deals with these expenses at an early stage and saves costs at an early stage can set up their company economically efficiently and be successful in the long term.

Every founder should think carefully about which costs are inevitable and where savings are possible. A good overview of finances is crucial to work profitably in the long run.

These costs arise when deregistering a small business

m contrast to the commercial registration, which depending on the city between 15 and 65 euros can be able to deregister a small business in many municipalities free of charge.

Regional differences in fees

The amount of the costs depends on the administrative effort and vary from municipality to municipality.

While many cities no fee There are some exceptions to deduct the business:

So in most communities No or only low costs for deregistration. If a fee arises, it moves in one moderate framework of a maximum of 50 euros.

Why are there any costs?

The amount of the fees is usually calculated according to the administrative effort. Since the commercial subscription is a comparatively simple process, many municipalities raise it for it no fee. If a municipality still requires a deregistration fee, it usually covers the processing costs of the administration.

When does the trade have to be deregistered?

You can unsubscribe if there are fundamental changes in business activities.

Reasons for a commercial subscription:

• Complete termination of business activities
• Moving to another community (requires deregistration at the old and new registration at the new location)
• Change of legal form (e.g. conversion of sole proprietorship into GmbH)
• Sale or lease of the company

If only the company headquarters within the same city or community changes, one usually is sufficient Commercial rubber message out of.

Deadlines and possible consequences in the event of late deregistration

The business cancellation must immediately take place as soon as the business is set. If you do not do this in time, you can expect legal consequences:

• Retrospective deregistration: Possible, but should within three months take place. Longer delays can be problematic.
• Fine: In some municipalities, late business cancellation can be Administrative offense be punished.

In order to avoid unnecessary costs or problems, the deregistration should therefore as soon as possible be done.

Alternative to deregistration: Set the business “resting”

If you are not yet sure whether the small business should be finally given up, you can temporary decommissioning as an alternative to deregistration.

During the dwarf: What does that mean?

• The trade remains registered, but will be not actively operated.
• There are No trade tax paymentsbecause no profit is achieved.
• IHK and HWK contributions must continue to be paid unless an exemption is requested.
• Business activity is possible at any time without having to carry out a renewed business registration.

This option can make sense if it is unclear whether the trade should be resumed at a later date.

Conclusion: The costs of the business registration are manageable

Registration of a small business in Germany is associated with comparatively low costs.

The actual registration costs between 15 and 65 eurosAdditional costs may apply depending on the industry and region. Anyone who is well informed and uses possible exemptions can minimize further expenses.

The greatest financial effort usually only begins after the foundation through ongoing operational costs, insurance or membership in the IHK/HWK. Nevertheless, the small business remains one of the cheapest ways to start self -employed and to gain initial entrepreneurial experiences.