Moving to another country offers many entrepreneurs the exciting opportunity to open up new markets and gain valuable international experience. But before the move can begin and the company can continue to operate in its new location, there are a number of administrative tasks to be completed in Germany. One of the key tasks is the proper deregistration of the business. In this blog post, you will learn which specific steps are necessary, which authorities need to be informed and which legal aspects need to be considered to ensure a smooth process.
Key Points
- Deregistering a business in Germany involves submitting a deregistration request to the relevant trade office.
- The process requires providing company details, tax numbers, and reasons for deregistration in the correct form.
- Deregistration can take 4-6 weeks to complete after submitting all required documents.
- Only a few offices offer online deregistration, as most municipalities only accept a submission of the documents in person or via post.
Deregistering your business – how it works
It is not always necessary to deregister a business when moving abroad. Before you give up your business for good, you should inform yourself in detail about your options. A discussion with your tax advisor is essential.
Tip: Don’t save at the wrong end! Especially when it comes to topics such as taxes or setting up a company abroad, individual advice is crucial in order to benefit from tax advantages in the long term. Clarify with your tax advisor what options are available to you before you deregister your business. Our partners at Staatenlos.ch, for example, specialize in helping digital nomads, emigrants and perpetual travellers to set up companies at low tax rates.
Who has to deregister their business in Germany?
A business deregistration is required in the following cases:
- You want to permanently give up or discontinue your business.
- You are relocating your place of business or a branch office to a new location outside the current municipality.
- You are changing the legal form of your business.
In all of these situations, deregistration of the business is essential in order to properly handle legal and tax obligations.
“Your business continues to exist even if you deregister your residence. Don’t forget to deregister your business it in good time – otherwise you will still have to submit statutory declarations such as VAT or income tax returns.”
– Oliver Frankfurth
How can I deregister my business in Germany?
- Fill out the form: You can obtain the business deregistration form from the relevant trade office or often online. Complete the form in full and sign it.
- Submit documents: Submit the form together with your trade license, your identity card and, if applicable, a confirmation of registration (if you are moving abroad). You can do this in person, by post or conveniently online.
- Inform the authorities: Once you have deregistered your business, the trade office will automatically inform the tax office, the Chamber of Industry and Commerce, the Chamber of Crafts, the registration court and the employers’ liability insurance association.
If you need assistance with business deregistration, you are welcome to book our service.
What documents are required to deregister a business in Germany?
Many trade offices offer an informal option for deregistering a trade. You usually need the following documents:
- Trade license
- Current confirmation of registration
- Identity card or passport
- If applicable, a copy of the extract from the commercial, cooperative or association register
Depending on the type of business, the authorities may request further documents. It is therefore advisable to ask the relevant trade office in advance which documents are required in each individual case of business, the authorities may require further documents. You can find out exactly what these are on the website of the respective authority.
Alternative to business deregistration:
If you would like to resume your business at a later date, it is advisable to submit a declaration of suspension to the tax office instead of deregistering your business. This will suspend your business for an indefinite period of time without existing licenses expiring. During this suspension declaration, you are exempt from trade-specific obligations and can easily reactivate your business at any time.
Tip: With our digital mailbox, you can easily receive your commercial mail digitally. This means you can continue to run your business or company – including companies such as UGs or GmbHs – in Germany, even if you move abroad.
Important information:
- Moving within a municipality: If you move within the same municipality, it is sufficient to register your business at the new location; you do not need to deregister.
- Costs: In many cities, business deregistration is free of charge. If fees are incurred, these are usually between 20 and 25 euros.
- Partial cessation of activity: Even if you only want to partially cease your business, you can voluntarily notify this by deregistering your business.
- Continuation of the business in Germany: If you continue to operate your business in Germany, no deregistration is necessary.
According to § 14 GewO, all changes, including the cessation of the trade, must be reported immediately to the competent authority. Many local authorities now offer the option of deregistering your business online.de, must be reported immediately to the competent authority. However, more and more local authorities are now allowing online business deregistration.
Online Business Deregistration in Germany
Deregistering a business is straightforward. You can obtain the necessary forms from the trade office or download them from their website. The form can be conveniently filled out and signed at home – this saves time on site. More and more cities now also offer the option of deregistering a business online.
Business deregistration is usually free of charge. The competent authority automatically informs bodies such as the tax office, the Chamber of Industry and Commerce and the employers’ liability insurance association. However, entries in the commercial, cooperative or association register must be deleted separately by a notary.
If you need help with this, you are welcome to make use of our service. However, it is often advisable to contact the trade office directly in order to handle the process efficiently.
Digital mailbox for companies
A digital mailbox for companies offers a deliverable company address with maximum data security. Your mail is digitized and made available online so that you can access it from anywhere in the world. For as little as 250 euros a month, expats and digital nomads can continue their business in Germany without having to physically receive their mail.
The service makes it easier to complete administrative tasks and ensures that you always have an overview of your business correspondence. This keeps your business management efficient and legally compliant, even from abroad.
Checklist for business deregistration: Have I thought of everything?
- Business deregistration: Deregister your business with the relevant authority. In many municipalities, you can deregister your business online.
- Cease business operations: Inform your customers and suppliers in good time and cancel all relevant contracts on time (e.g. contracts with telephone and internet providers, insurance policies, leases, energy supply contracts, advertising contracts, bank accounts, powers of attorney).
- Forwarding order or digital mailbox: If the business is relocated, set up a forwarding order or digital mailbox to ensure that important mail is still received.
- Customize website: Delete or update your company’s online presence.
- Deregister from radio tax and GEMA fees: Depending on the nature of your business, deregistration of GEZ and GEMA fees may be necessary.
- Sale of the business: Plan the sale of your business as advantageously as possible in order to minimize financial losses.
For self-employed persons: Deregistration of freelance work
The main difference between freelance and commercial activities lies in the type of activity carried out: freelancers generally provide scientific, artistic, literary, teaching or educational services and are not subject to trade tax. Tradespeople, on the other hand, carry out commercial, craft or industrial activities and are subject to trade tax.
To register a freelance activity, you must contact the relevant tax office directly.
Follow these steps:
- Fill out the form: Get the form to deregister as a freelancer. You can usually find it on the website of your tax office.
- Submit the form: Hand in the completed form to your tax office. This can be done in person, by post or – depending on the tax office – online.
- Income tax return: Prepare a final income tax return in which you state your income and expenses up to the end of your activity.
- Notifications to other authorities: If necessary, inform other relevant bodies such as social insurance providers or professional pension schemes about the termination of your freelance work.
- Wait for confirmation: Wait for written confirmation from the tax office that your freelance work has been officially deregistered.
If you are unsure, you should contact the tax office or your tax advisor directly. If you don’t want to take care of deregistration yourself, we offer a service that will take care of the entire process for you.
