GACO Corner: Opening a Business in Germany

While residing in Germany, spouses or family members might wish to make the best of their time, offer services or sell U.S. products that fall under customs regulations (i.e. Pampered Chef, Yankee Candles, nail studios or foot care). If you wish to open a business in Germany, please be aware that the following rules need to be observed:

No matter if you fall under the NATO SOFA Agreement or not, German law applies for opening a business. It does not make any difference, if you deal with U.S. military or civilian citizens, foreign military members or civilian foreign nationals.

You need to officially register your business with the local German business registration office, depending on where you reside! This office will inform you of any permits or requirements you will additionally need.

The business registration office will inform the Finanzamt (Tax Office) about the business. They will provide you a tax number (Steuernummer).  Please consider getting with a tax advisor for more important information on tax filing, turnover tax and etc.

If you are a dependent of a military member stationed in Germany, you don’t need to obtain a residence permit (Aufenthaltsgenehmigung) or a work permit to operate your business, because you have NATO SOFA Status (Article 6, para 1 Supplementary Agreement to the SOFA Agreement). Once you would give up your SOFA status, you need to obtain a residence- and work permit.

Customs Info: (Zollinfo): You are not authorized to use your military privileges for your private business. You need to use your German address and if necessary, a German plated car. Check with the German Customs Office (Zoll) in Kaiserslautern or your customs office on the military installation for details on customs questions.

It is a must to deregister your business with the Finanzamt AND THE LOCAL TRADE OFFICE. When changing place of living or change place of the business, both offices also need to be informed.

For further information, please visit https://www.gaco-kl.de.mail: info@gaco-kl.de.Telephone 0631-363-301 or visit Facebook, https://www.facebook.com.