4 Steps To Start A Small Business In Germany [Side Hustle]

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Learn the steps you need to take to start a side hustle in Germany.
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🔥 Sorted for Freelancers
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✨ RELATED GUIDES:
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How To File A Tax Declaration In Germany
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⏰ Timestamps:
00:00 - Introduction
00:41 - Check Your Residence Permit
03:29 - Freelancer vs. Trade Sole-proprietor
08:19 - Register With the Tax Authorities
09:51 - Open Your Business Bank Account
12:29 - Overview of Business Tax in Germany
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We know how frustrating and painful it might be to move to a new country, especially if you don't fully speak the language. That's why we created Simple Germany.
Simple Germany provides tips & information in English about living in Germany as an expat. We talk about services that are friendly and easy to use to beat German bureaucracy. We also cover the cultural aspects of living in Germany. All of this brought to you from the eyes of an expat and a German duo. We want to help you settle in Germany more smoothly.🍻
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Опубликовано:

13 июл 2024

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Комментарии : 140

@ammarburhani8328 5 месяцев назад

this video came out at exactly right time.. I am in the process of setting up my shopify store to sell goods online.. Thanks Simple Germany! You do make life easier.. hehehe

@rohantaneja Год назад

Thank you for making this video. Valuable information!

@lindapertiwi1600 Год назад

This is really great and beyond helpful video Thank you so much!

@mak8972 Год назад

Thank you so much for this video! It's beyond helpful. You made the german bureaucratic jungle much less scary to enter ❤

@RanitaVideos 4 месяца назад

Thank you so much! I was feeling very overwhelmed and this help create an action plan

@eranbenavraham Год назад

Love your content. I'm Australian and my partner is German. I will move to Germany soon to marry. After watching your awesome channel, I don't feel like moving to Germany, permanently. Too many rules and regulations. Sounds like a nightmare place to live.

@simplegermany Год назад

That highly depends on where you are coming from and what you are looking for 😉 and yes, it’s not for everyone.

@stevedaniel7065 10 месяцев назад

I'm Kiwi and my wife is German. I've found these regulations very unclear and often the government people don't agree on the correct rules XD

@melraybee 5 месяцев назад

This has been so helpful! Thank you! 😊

@AnelyBek 3 месяца назад

You guys are the best! Thank you!

@fabrizioollargiu5530 9 месяцев назад

In few-minutes-only you gave me the answers and infos that I have been looking for weeks (probably much more). Unbelievable video, thank you :)

@TalhoEvenstar 3 месяца назад

Another informative video. Thank you!

@elenaollero8588 4 месяца назад

This channel is the best!!! You're making everyone life so much easier!! Toi toi toi! Keep it up and thank you so much 🙏🏻❤

@bijanzohouri98 9 месяцев назад

Thx for sharing this

@ayushsharan9083 Год назад

Great video again. Thanks for putting this out. Both of you are doing an outstanding job by putting great meaningful content out here. Is it important to do all of the procedures before one starts generating income or can they wait until they really start generating a regular cashflow to do all of the formalities?

@user-cx8bp9pr8y Год назад

Such a good & nice information, much better than other platform. Thanks a lot 🤓🤓😃😃

@FreyaIvy Год назад

Can someone please help me I've been looking for things to do, I got my LLC started and my credit score is about a 560 i am not getting anywhere. Am homeless living in my truck. I need help please someone help me.

@hebatallaabouzeid9980 5 месяцев назад

the most useful channel on youtube great work

@zeerakkhan274 10 месяцев назад

Great informative video 🫶🏻

@virg79 Год назад

Amazing video! So useful and inspiring to start a side hustle. ❤

@thewebconsultant Год назад

I have ideas for you!

@cathalmeenagh4423 Год назад

Thanks so much for this!!

@thewebconsultant Год назад

what do you sell in Germany?

@laureneastwood5936 Год назад

I so love the outtakes! 😂😊

@thericksbuhaygermany726 2 месяца назад

Thank you.. great help….

@SchwarzeKatter Год назад

Kinda jealous of the Americans and their lack of bureaucracy to start a business

@NanaHoneyB Месяц назад

Right… everything is so annoying and exhausting here. I can’t wait to leave. But for now, I have to deal with it😪

@juliarays1271 4 месяца назад

Hola from Düsseldorf chicas! Danke sehr. Helpful.

@Julia_001 Год назад

Thanks

@TMD21Apr09 Год назад

I appreciate your videos. One funny thing but that I see it as love factor. Yvonne looks at you very lovably and observes you looking at your mouth while you (Jen) speak 😂.

@katherinealexandre8064 Год назад

15:53 thank you for this and all your videos they are always helpful. I shared your investment video with the hubby and he loved it so much he opened an account with DKB (I think that’s who they are) It was also great meeting you at Aldi the other day❤😊…. I needed this information so I can put my TEFL certificates to good use, especially the Business English one😅.

@fernandapostal5077 7 месяцев назад

Love all your videos! This one specially answered all the questions that I had about how to open a small business (legally speaking). Thank you! Just got you a coffee ;) Enjoy it and keep up with the good content fun vibes! :D

@simplegermany 7 месяцев назад

Thank you so much for supporting us!

@chathulasampath3257 Год назад

This is a great video. I have a plan to open a resturant. Can you create a video about the procedure?

@me0101001000 Год назад

I'm a grad student, and I've got a side hustle of busking in the Innerstadt of my country. I really appreciate all of this! Thanks!!

@simplegermany Год назад

Cool, what kind of music do you play? 😊

@me0101001000 Год назад

@@simplegermany most of my performances entail an art form called poi, where I swing LEDs at the end of chords in each of my hands in different patterns to leave trails of light in the air. Makes for a cool sight in the evenings :)

@simplegermany Год назад

Oh wow, sounds super interesting!

@fannychristozova8158 Год назад

Really well presented and completely adaptable! I do consider starting something of my own in Germany - in time. or after I settle with my pace of life and ideas and... you know how it is. I spotted a few new visuals in this video, like the disclaimer and the editing brings more dynamics. The bloopers were cool too, but did you also debut a new piece of SG clothing? 👚🤩

@simplegermany Год назад

Well spotted! Hihi - it was actually a first try before the smoothly shirts. We just have a couple of them and thought, why not wear them after all 😉

@fannychristozova8158 Год назад

@@simplegermany Yea.. I saw your reply to a previous comment, only after I posted mine. But hey, you do know it will certainly be worth it and pay off, at any moment now or as a future merch to your consideration! I'm happy you decided to wear it on camera!

@lifeadventure859 Год назад

Thanks for video! Just in time ♥️🇺🇦

@thewebconsultant Год назад

What products/services do you have in Germany?

@markrussell4682 Год назад

Just FYI, these rules are sometimes different in Berlin. For example, in Berlin, one can get an artist visa not available anywhere else in Germany.

@yesidlopezs 25 дней назад

"No bueno" jajaja loved that part

@ilzevitola2354 10 месяцев назад

super

@RenatoGjonej Год назад

Hi,have you made any video of how to change tax class? Thanks for every video,they are all really helpful 😊

@simplegermany Год назад

We have a detailed guide on the tax classes including how to change it: www.simplegermany.com/tax-class-germany/

@vladimirvoskanyan7861 Год назад

Hello, first of all I want to thank you. I am here already one year and every time I struggle I get my answers in your videos. Keep the good job. My question: I am a Creative Marketing Manager working with remote clients abroad, how can i check if my specialization is considered as a trade or freelance? Is there an up-to-date list? Thanks in advance.

@perla8888 Год назад

Thank you for all the information that you bring to us. I am a german citizen living in the USA, and I am planning on moving back to Germany within the next 5 years. Once in germany, I would like to start my own business offering hair removal services (electrology/nadelepilation). I would appreciate it if you had any information on this field. 😊

@DanielTubul Год назад

lol that was the most complicated aspect with living in Germany that made me go back 3 times :P

@deegnis 6 месяцев назад

Hey Ladies, thanks a lot for your content - really helpful! the idea of having a side hustle comes more and more often to my mind. However, I might be in a tricky situation but you might already have a hint for me about it :) So the point is, I would like to turn my woodworking hobby workshop into an official business (which would be a kleigewerbe) but in addition to that I also run an RU-vid channel where I post my DIY projects. Now, do you have any idea if both income sources can be associated with the kleingewerbe? or is there another "mandatory" field of activity to be associated with social media (youtube) income? Many thanks and keep up the good work!

@pourdamghani Год назад

Oh, is there going to be a new merch dropping by soon? I see your logo on your T-Shirt, Jen :D

@simplegermany Год назад

Well spotted! Hihi - it was actually a first try before the smoothly shirts. We just have a couple of them and thought, why not wear them after all 😉

@pourdamghani Год назад

@@simplegermany Aha, I see. 😊Maybe you can create a contest/quiz/... and have these remaining t-shirts as the prize, or maybe send them to the first person that spotted them 😁

@omid_tavakoli Год назад

Thanks for the useful content. How much Gernan langusge do I need to do business as an expat in Germany?

@labrujulademama Год назад

Gracias por su contenido. Super explicado, qué pasa con los productos digitales, como se consideran? Y si Tengo una mezcla de asesorias con productsoa digitales me convendria freelance?

@yaserhu 10 месяцев назад

Thank you both for this nice Video. I saw few days ago and thought of returning with more specific questions. I do marketing and media planning. So what if I want to start with 2 activities under same registration form- one towards freelancing in Upwork and Fiverr as a consultant, which can means selling ads in some scenarios? The second activity could be a service website or ecommerce/shopify/ affiliate or adsense. The reason for me saying this is not sure, what will work, everyone has to do some testing. The second main question, some of business transactions could be for another country. Example someone from UK want to buy a service in South Africa or Egypt, and I help them with that. Should this amount be also subject to tax or VAT- because except for me who is based in Germany the transaction with those 2 parties was outside Germany. Thank you

@Reizo27 9 месяцев назад

hi, such an informative video. i really appreciate the efforts you have given for this video. so, i was planning to start a dropshipping business here in germany and while looking for the informations i found out your video! so, my question is : are international students allowed to do dropshipping in germnay?

@SNEHDENCARDOSO Год назад

Please make a video on how to learn German

@RyanBorzoo 4 месяца назад

First i wanna express how much i love you guys for making this video, thanks a lot!!! Second, If I come to Germany by language visa can I apply for the Gewerbeamt to run my RU-vid and Facebook businesses?

@simplegermany 4 месяца назад

Most likely not as you visa will be tied to being a language student. But it depends what your residence permit states as we explain at the beginning of the video.

@meteic 10 месяцев назад

First of all thank you for great content, I am newly getting to know your channel but it is seriously clear and informative. I have a question because somehow I feel like I heard this in a conversation. Would there be a problem if my "side business income" passes my "main income"?

@simplegermany 10 месяцев назад

It depends on your individual situation, what your residence permit allows, what your employer allows....

@niveskurjak7290 Год назад

What happens if you primarly offer a service, have a youtube channel and also sell trough etsy or any kind a type of trade? Great video btw!

@simplegermany Год назад

The last part of your sentence hints at Gewerbe. But you need to ask a tax consultant for personal advice 😉

@halatrejulien7613 Год назад

Hi, thank you again for all the videos and all tips about living in Germany. I have been through the article on your website, and i have just a question regarding the taxes. If we follow your example, the businesse is doing 102k€ in profit, but i do not want getting out the money of the business (so no income for me because i could count on the revenu of my wife for example). Does it mean that i have just to pay only the trade tax and the solidaridy tax ? Thank you for your reply ? and again thank you so much for sharing so much information in germany :)

@simplegermany Год назад

Profit is always taxed, regardless of whether it stays in the company or not. The tax rate depends on the identity of the company (sole proprietor, GmbH, etc). Please consult a tax advisor for more individual advice, through the partners that we mention in the video.

@Leaf219 8 месяцев назад

I was wondering then starting freelance. If you knew learning skills experiencing. You need to repot right away but you dont know if it works or you will do anything with it? Or is it specific amount limit then you earn you should report? Makes no sense if you make just couple bucks?

@Ah2o5b Год назад

Great video if I wanted to try out many forms of self emplyment like programming or designing , buy and resell products or sell my own product would I have to do the same process for each one of them seperately or one would be enough thanks.

@simplegermany Год назад

That depends on your interpretation and how you want to do business. Best to talk to an expert 😉

@Ah2o5b Год назад

@@simplegermany I see thanks anyway

@rishiraj2548 Год назад

👍🙏

@knoz35 10 месяцев назад

Thanks for clarification! Very clear instructions. One question though, what happens when you make social media accounts and gain a lot of followers or you reach a point that you can monetize your videos?

@simplegermany 10 месяцев назад

When you reach that point you need to register a Gewerbe, as we explain in the video 😊

@knoz35 10 месяцев назад

@@simplegermany Thanks a lot for the quick reply! Do you know if this work/side hustle affects student part time work time? As you know, we are only allowed to work 20 hours per week. I wondered if it reduces the hours from there. Sorry if I miss it in the video :/

@19sangeeta 9 месяцев назад

Is it possible to start the process of getting permission during maternity protection leaves?

@virginiasandoval8695 18 дней назад

Hi. Thanks for sharing! what would be the option when you want to offer online marketing services (as a certified consultant) and parallel also to manage own online store and promote affiliate marketing links that can generate income? is this title: Kleinunternehmer - gemischte Tätigkeiten an option you find in the Gewerbe Anmeldung form?

@simplegermany 18 дней назад

Please speak to a licensed professional 😊

@francesremo 2 дня назад

Hello! Thank you so much for this video! I am an American planning to move in Germany soon, I'm just waiting for my visa to arrive. I do have a youtube channel and is very close to getting monetized, probably this week. I guess I should just wait to register there in Germany but I think I will have to do the route of asking the Ausländerbehörde if I can be allowed to have a side hustle, since my visa is a 16d visa... did I understand it correctly?

@simplegermany День назад

It depends what will be stated in your visa as we explain at the beginning of the video 😊 all the best for your move 😊

@margaux3247 6 дней назад

Hey thank you for your video !! I have a question, I would like to start freelancing as a kleingewerbe for my first and second year but it might happen that I have clients in EU but outside Germany. Therefore it seems I have to tick the box « VAT » so does it mean I have to charge for all my clients VAT (or only the ones outside DE) and make a VAT declaration ?

@simplegermany 5 дней назад

If you decide to charge VAT you must do so for everyone.

@haghighi251 11 месяцев назад

If somebody wants to start/have a business in another country like in their own country at the same time when they are working as an employee in Germany, Do they need to get any kind of permission from their employer in Germany?

@christelledutoit 3 месяца назад

Hi. I have a question regarding your interaction with the Ausländerbehörde. Did you make an appointment to discuss with them or did you just phone them? What was the process, and at which points did you go there? I have my documentation ready but am not sure if I book an online appointment, phone them or just go there (I hate phoning people if I don't need to because my German language skills are still lacking).

@simplegermany 3 месяца назад

The Ausländerbehördes have changed their systems since then. We just send them an email asking for the permission to be allowed to have a side hustle with all the supporting documents.

@rukhsarhajizada 6 месяцев назад

you are doing great, I would like to Ask you, would it be possible to convert my type of Residents permits when I get my Small Business License, or to Convert to Blue Card, please kindly let me have your answer.

@emmalexrelaxingsounds7403 Год назад

I had an online work in this case teachin online before moving to Germany. Does this affect any of my tax situation here? I keep receiving payments from abroad via my new German Bank Acc. Thanks for the info!!

@simplegermany Год назад

Any income you receive plays a role, also if it comes from abroad. You should seek professional tax advice.

@alantaha Год назад

Great video just on time I was researching about this :) My Zusatblatt indicates that "selbständige tätigkeit erlaubt nach 2 jahre" but I am not sure when does this "2 years" start? wheter it starts the moment I arrived to Germany or it starts with the date on the zusatblatt or the date in my residence permit. Because all 3 dates are different. I already asked this to Auslenderbehörde but if anyone has expereince, feel free to enlighten me.

@simplegermany Год назад

Good question! Could you please share the answer with us once you have it 😊

@alantaha Год назад

@@simplegermany So I found out that the date you began working in Germany is the base date for counting these 2 years or 5 years marks.

@biankavarnai2499 6 месяцев назад

Is life coaching regulated in Germany? Can I be a life coach without certificate in Germany?

@janu5730 6 месяцев назад

@simplegermany thank you so much for the video. Can you pls clarify in my case. I have received ERWERBSTATIGKEIT ERLAUBT. Can I work as self employed or start any business in Germany. Pls clarify, thank you.

@simplegermany 6 месяцев назад

We can't give individual advice, but we do talk about your question in the video at the beginning.

@n6113 7 месяцев назад

Hello ladies! I would like to ask you if i already work as an employee can i start my own company as a sole trader? Do i need to inform my employer? Thanks in advance!!

@simplegermany 7 месяцев назад

We answer all questions in the video 😉

@anas6435 5 месяцев назад

Thanks for the valuable info.. Does starting a youtube tech channel in Germany requires registering as a "Nebengewerbe" or a "Nebentätigkeit" or a "freiberufler" ? The RU-vid channel is a side hustle thing, not my main job..

@simplegermany 5 месяцев назад

We touch on that question in the video 😉 in our opinion it qualifies more as a Gewerbe.

@anas6435 5 месяцев назад

@@simplegermany Thanks for the quick reply ☺️ Yes I saw it @ 07:00 ,, but it was not clear to me if "Gewerbe" or "Nebengewerbe" is the choice for someone having a full time job..

@biankavarnai2499 5 месяцев назад

Can I be a freelancer as a life coach? Is it regulated in Germany? Do I need to have professional education in life coaching?

@zeerakkhan274 9 месяцев назад

As an international student pursuing masters in Germany, is it allowed to freelance while being a student?

@chathurikagunarathna2370 8 месяцев назад

Can you plz give some details about doing a small business with aupair,volunteer and ausbildung visa ? Is it possible to do a small online bussiness like selling t shirt with any of these visa for non Eu citizen ? Thank you so much for your information ❤️

@simplegermany 8 месяцев назад

We doubt that you can, since your ‘work type’ is restricted. But it all depends what is stated on your residence permit.

@dinnerwithnanas1969 7 месяцев назад

Please how long will it take to get the visa after you ask for it

@simplegermany 7 месяцев назад

It depends!🙂 You can view our How To Move To Germany Guide here: www.simplegermany.com/how-move-to-germany/#3_Apply_For_Your_Visa_In_Time

@augussierra 3 месяца назад

Hi, I'm interested in starting a service-based agency with my partner. We wouldn't be either Solo Freelancers or sole proprietors. Our goal is to be able to pay ourselves from the business, at least as a Mini-job in the beginning. Would that be possible? Is there anything that I am not seeing? I would appreciate any feedback. Thanks in advance.

@simplegermany 3 месяца назад

Yes of course that is possible. If you want to do a Gewerbe with your partner you should look into forming a GbR.

@cornerinfo7527 Месяц назад

Thanks for the valuable information I just registered my OnlineShopping business in Gewerbeamt and i am about to apply for the steuernummer. Do i need to apply for VAT as well and if yes, how am i going to calculate that in the selling process of my online goods ? please give me atleast an overview of it

@simplegermany Месяц назад

VAT is a choice at the beginning and mandatory after a certain revenue and income threshold. You can find more info in this guide: www.simplegermany.com/how-to-start-a-business-in-germany/#An_overview_of_business_tax_in_Germany. In Germany you always need to show the final price when selling goods - so including VAT.

@cornerinfo7527 Месяц назад

@@simplegermany thanks again 🙏🏼

@spacextreme1 5 месяцев назад

I got a question. Can I open a company if I'm on a student visa? The business will be online reselling

@simplegermany 5 месяцев назад

Please watch the first part of the video where we talk about how to check whether your visa allows you to start a company.

@qwe14205 5 месяцев назад

Before I finish registering everything I would forget what was I doing

@supremachine Год назад

Are you allowed to gamble as an international student in Germany?

@thewebconsultant Год назад

Yes!

@MorenikeAdekunle-hy6oj 9 месяцев назад

Great content, I sell really well on e commerce platform. Making 40k monthly but can you make a video for me about rules on Etsy in Germany, I've been lazy to do all the research here.

@MorenikeAdekunle-hy6oj 9 месяцев назад

I want to expand my business to that platform, any information on that will be appreciated ☺️

@sathyabalakrishnan Год назад

Do u guys consult tax consultant for your RU-vid channel

@simplegermany Год назад

Nope - like we mention in the video, we are not certified advisors, but the companies we talk about and list in the description can help you out.

@luisalde 10 месяцев назад

My girlfriend works as a designer as part time. She is from EU, so there shouldn't be issues with the . The Finanzamt kind of tricked her to open a Kleingewerbe. They told her that was the only way of working as a freelancer. Everywhere we went, we told got the same response. Where can we get accurate information?

@simplegermany 10 месяцев назад

From a licensed tax advisor.

@karalove3786 Год назад

Thank you for the video and I have been toying with the idea of getting a side hustle eventually after settling here. However I never realised that the prohibition not to do self employment or take on other similar non self employed work (i.e. "selbständige oder vergleichbare unselbststandige Tätigkeit nicht erlaubt") was a stand alone requirement in addition to the requirement about having to get the permission of the Ausländerbehörde for changing jobs in the first 2 years of working in Germany. I thought the 2 year time bar was for both. Therefore if there is no time limit on the prohibition for self employment or other non self employed work. Does this mean this requirement is a permanent feature even in a permanent residency permit? Or can it be removed on request at the time of application for permanent residency permit? Or must one wait until one starts a side hustle to ask for it's removal?

@simplegermany Год назад

As far as we know, once you reach permanent residency you are automatically allowed to also work as self-employed. And berforehand you can request to get special permission, like we explain in the video in Jen's case. But you should always consult your Ausländerbehörde as they ultimately decide.

@katherinealexandre8064 Год назад

Goo to read from a fellow Mzansi person. Great question by the way!

@AhoySauza Год назад

Can u talk about how to ship a car to germany ?

@simplegermany Год назад

Not really, as things change depending on where you want to ship from and it doesn't really make sense to ship in our opinion. You can find out on how to buy a car in Germany in this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-oKZRwWMyY4Q.html

@AhoySauza Год назад

@@simplegermany no

@CDGbyGraziaCosta 6 месяцев назад

I wouldn't necessarily suggest freelancing in Germany, the whole freelancing gig here is just not worth the stress!

@anishajoy3401 Год назад

Hello, I am on dependant visa ,can I look for freelancing job in Germany as a digital artist

@thewebconsultant Год назад

Are you still searching for the job?

@Neoleono 7 месяцев назад

Can i start a small business as a master's international student in Germany?

@simplegermany 7 месяцев назад

Hey Ankita! We have a couple of guides on our website that may be able to help you with this. 🙂 Take a look: - www.simplegermany.com/how-to-start-a-business-in-germany/ - www.simplegermany.com/freelancing-in-germany/#How_to_obtain_a_Freelance_visa_in_Germany

@isuruamare6855 11 месяцев назад

LUCKILY PERMISSION CAME THROUGH!!!! Ausländerbehörde is probably the worst place on earth! It's unbelievable how hard to start your own company in germany as a non eu citizen. At this point of my life, I consider spending years to learn the german language and coming to germany as one of my worst decisions ever!

@ronnanp Год назад

Thanks again, Ladies! Hey, I just tried to buy you two a kofi (actually, one for each of you - lol), but there was a glitch (my bank first declined the transaction), then it was approved and has been debited from my account, but I'm not sure the kofi transaction actually went through on your site. Can you please let me know if you got my contribution? Sorry, this was the only place I could see to contact you. Thanks!

@simplegermany Год назад

Hey @ronnanp! Wow, thank you so much for wanting to buy us a kofi :). I just checked our kofi page, and unfortunately no kofi came in yesterday with your name. You can always send us a private message here: www.simplegermany.com/contact/

@ronnanp Год назад

I tried again, and this time I was successful. Enjoy the kaffee!