German sole proprietors (Einzelunternehmen) fall into two distinct categories with very different rules: Freiberufler (liberal professions — doctors, lawyers, engineers, architects, plus scientific/artistic/literary/teaching work) require no trade registration, pay no trade tax, and have no mandatory Chamber of Commerce (IHK) membership; Gewerbetreibende (trade businesses, everything else) must register a Gewerbe (trade license) and become mandatory fee-paying IHK/Chamber of Crafts members. EU/EEA nationals can register freely; non-EU nationals need a residence permit for self-employment (typically §21 AufenthG for founders or §18b AufenthG for qualified professionals) and must present a strong business plan to obtain it.
Freiberufler (liberal professions): no trade registration, no trade tax, no mandatory Chamber of Commerce membership.
Gewerbetreibende (trade businesses): must register a Gewerbe and become mandatory fee-paying IHK (or Chamber of Crafts) members.
EU/EEA nationals can register freely; non-EU nationals need a residence permit for self-employment (§21 or §18b AufenthG) and a strong business plan.
No advance tax payments required if income is below the basic exemption level (€12,348 from 2026).
Required Documents
Business plan (for non-EU residence permit applications)
Tax registration (Fragebogen zur steuerlichen Erfassung)
Gewerbe registration (Gewerbetreibende only)
Common Mistakes
Misclassifying as Freiberufler when the actual activity falls under Gewerbe rules — the Finanzamt makes the final determination, and misclassification can trigger back-taxes and trade tax liability.
Assuming EU-level free registration extends to non-EU nationals — they need a specific residence permit (§21 or §18b AufenthG) tied to self-employment.