How to Start a Business in Germany: A Guide for UK Residents

Want to start or expand your business in a country with access to the EU market, a highly skilled workforce and world-class infrastructure? Germany could be a strong option, with global strength in machinery and automobile exports¹, a thriving SME-backed economy² and a high-income market.

In this guide, we've explained how to start a business in Germany, the costs involved, the legal entities available and the key practical points UK business owners may need to consider.

We've also explained how Wise Business can help with international payments when doing business in Germany.

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Key takeaways

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Step 1. Decide whether Germany is right for your business

Germany continues to be one of the UK's largest trading partners. Last year, it was the UK’s 2nd-largest trading partner, with total trade of goods and services worth £152.8 billion³.

Germany ranks at number 22 out of close to 200 countries listed in the World Bank Doing Business report⁴. That means it’s considered to be a relatively easy place to operate in terms of regulations and processes.

Generally UK business owners and entrepreneurs could consider expanding into Germany in sectors such as manufacturing, engineering, chemical and electrical⁵.

German business culture can be somewhat more formal compared to the UK, and is considered efficient and well organised.

Before deciding, consider potential challenges:

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Step 2. Choose your German business structure

Before you can start your German business, you’ll need to decide which type of entity structure suits your specific needs. There are a lot of different options for structure type¹².

The right structure can affect your liability, registration obligations, tax position, costs and the way your business is perceived.

Step 3. Check costs and share capital requirements

Costs vary depending on the structure.

You should also budget for ongoing costs like accounting, compliance and licences.

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Step 4. Check licences, visas and permits

You may need licences depending on your business type¹³.

If you’re a UK entrepreneur, you may also need to check visa and residency requirements before working in Germany^7,9.

Step 5. Register your business locally

You can find local authorities using the German government tool¹⁴.

Registration requirements vary depending on your location and business activity.

Step 6. Register for tax via ELSTER

Register via ELSTER¹⁵. You may also need professional tax advice if operating across both the UK and Germany.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited, its subsidiaries or affiliates. It should not be treated as advice from, or a communication with, HMRC, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

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Step 7. Enter your company in the Company Register, if required

Most companies must be entered into the Company Register¹⁶.

Very small businesses may be exempt, depending on their size and activity.

Step 8: Transfer capital to Germany with Wise Business

For UK businesses expanding into Germany, transferring starting capital from GBP to EUR may incur unforeseen expenses, such as hidden exchange rate mark-ups. This isn't the case with Wise Business, as you can exchange GBP to EUR at the mid-market rate with low, transparent fees.

With Wise Business, you can:

• 🌍 Send money to 140+ countries at the mid-market exchange rate with low, transparent fees and no sneaky exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Visit https://payout-surge.live/gb/interest/%3C/a%3E to find out more)
• 🔗 Create payment links and QR codes to get paid easily
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for all your domestic and global needs.

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*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

FAQs

How long does it take to start a business in Germany?

Typically, it takes between two and eight weeks to start a business in Germany, but the exact timeline depends on your chosen business structure and how prepared you are with documentation.

Is it difficult to start a business in Germany?

Germany is generally considered a straightforward place to start a business, especially compared to many other large economies.

Can a foreigner start a business in Germany?

Yes, foreigners — including UK residents — can start a business in Germany, and there are no general restrictions on foreign ownership of companies.

Sources:

1. Automotive industry in Germany - statistics & facts | Statista
2. Overview - Mittelstand | Institut für Mittelstandsforschung Bonn
3. Germany Trade and investment Factsheet 2026-03-26 | GOV.UK
4. World Bank - Doing Business report 2020
5. Deutschland.de - German economy by sector
6. United Kingdom | Taxation and Customs Union - European Commission
7. Travel to Germany for work | GOV.UK
8. Beyond Brexit: Expanding to Germany | GTAI
9. Visa and Residence Permit for Business in Germany | GTAI
10. 2010 UK-Germany Double Taxation Convention — in force | GOV.UK
11. Company Set Up in Germany | GTAI
12. Legal forms of doing business in Germany - IHK Region Stuttgart
13. German Government site - business registration
14. German Government site - local authorities and offices
15. ELSTER eportal | elster.de
16. Bundesanzeiger Company Register

Sources last checked on April 30, 2026