Register Business in Germany
Avoidable Mistakes
Expensive Mistakes
Mistakes I Made When Opening Business in Germany
Amsulistiani Ensch
-
Author
Saturday, July 29, 2023
Mistakes I Made When Opening Business in Germany
I’m a foreigner living in Germany with a spouse visa — the kind that’s valid for only 3 years. When I first came here, I wanted to do something meaningful with my time and skills. Naturally, I thought, “Why not open my own business?”
Actually, I ended up opening two: a GmbH and an Einzelunternehmen (sole proprietorship). I thought they’d complement each other. Instead, I walked straight into a mess of confusion, taxes, and stress.
Here’s my story — and the mistakes I made, so you don’t have to.
1. Can a foreigner open a company in Germany?
Yes — and that was one of the first things I was excited to discover. I still remember how happy I was when I realized I could legally open a business in Germany, even though I was here on a limited 3-year spouse visa. It felt empowering — like I was taking charge of my future, not just tagging along in a new country.
I started Googling non-stop:
"How to open a business in Germany as a foreigner"
"Do I need a permanent visa to start a company?"
And surprisingly, the answer was always: Yes, you can.
That tiny green light was all I needed.
I booked an appointment with a notary, ordered coffee I didn’t drink, and sat in the waiting room clutching my business plan like it was a passport to something bigger. It was scary, sure — but it was the good kind of scary.
No one asked me why I was doing this. The questions more likely about my business plan, how much i think i will make. They stamped the paper, and then I am... a business owner in Germany.
2. What type of company should I register — GmbH, UG, or Einzelunternehmen?
Here’s where my entrepreneurial imagination ran wild.
I thought:
Why choose just one when I can do two?
So I opened a GmbH, because it looked serious and professional. That was going to be my main company — the one with structure, contracts, and official email signatures.
Then, I registered an Einzelunternehmen on the side, for small freelance projects — because why not? It’s just a sole proprietorship, right? Quick and flexible.
I had this fantasy that the two businesses would complement each other:
One for bigger clients.
One for flexible gigs.
Two streams of income.
Twice the potential.
What I didn’t know was that I’d also signed up for two times the paperwork, two times the deadlines, and two very different accounting systems that do not like talking to each other.
By the end of the first month, I had three folders labeled:
"GmbH Things"
"Einzelunternehmen Chaos"
"Stuff I’ll Ask My Steuerberater"
What I didn’t know was that I’d also signed up for two times the paperwork, two times the deadlines, and two very different accounting systems that do not like talking to each other.
— My Dumb Excitement
3. How much capital is needed to start a company in Germany?
I knew the GmbH required €25,000, but then i found out it will be only €12,500 upfront — and I managed to make it happen.
It felt like a real commitment, which I liked. It gave me a sense of purpose.
I told myself: This is it. This is real.
Other budget i prepare:
Notary fees
Company registration translations
Accounting setup
Bank fees
Tax consultant sessions (that I thought I didn’t need yet...)
Meanwhile, the Einzelunternehmen was supposed to be “free,” but it still came with:
VAT registration
Health insurance questions
Unexpected invoices from the tax office
I was spending more time learning what I’d done wrong than actually doing business.
Conclusion
🌧️ By the End of the Year...
That innocent excitement I had at the start?
It slowly turned into long nights with Google Translate open on one screen, and Excel spreadsheets I barely understood on the other.
Every month felt like a new surprise from the Finanzamt (tax office).
I’d get a letter with a bunch of bold German words, then email my tax advisor:
"Is this bad? Do I owe someone money? Again?"
I wasn’t failing.
I was just... tired.
I had two business.
I had ideas.
But the tax system, the forms, the deadlines — they didn’t care about my ambition or my dreams. They wanted things done correctly, on time, and in German.
By December, I was celebrating not profit, but survival.
I kept the businesses alive, I learned a lot (the hard way), and most importantly:
I didn’t give up.
💡 What I Learned (So You Don’t Have To)
Opening a business is the easiest part. Running it, legally and correctly, is the real work.
Don’t register two companies unless you fully understand the tax implications.
Start with one, get help early, and don’t wait until things get messy.
Your spouse visa might be limited, but your potential isn’t — just plan wisely.
I still believe in the dream I had when I first opened those companies. I just see it differently now:
With a little more patience, a lot more paperwork — and much better folders.