A trade or business refers to a commercial activity operated independently and at one's own risk. For example: Running a restaurant, a shop or a . An individual with a trade or business does not have an employer.
A trade or business must be registered. The before it commences.
Freedom of trade exists in Germany. Each individual is permitted to practise a trade or run a business. For some trades or businesses however, a specific authorisation, a licence or a is required in order to be permitted to carry it out independently. In certain cases the trade or business is also specifically monitored. These trades or businesses are also referred to as regulated trades or businesses. These include, for example:
- Security services
- Insurance broker
- Care services
There are other regulations for such trades and business in the .
Many trades and businesses are governed by the Trade Regulation Act. It is important to understand the regulations before commencing trade or starting a business. Information regarding this is available from the trade office (Gewerbeamt) and the tax authority (Finanzamt). Many trades or businesses also require recognition of a foreign professional qualification.
There are independent activities which are not classified as trades or business. These include the so-called . For example:
Professions in the sectors of agriculture, forestry, and fisheries are also not trades or businesses. Other regulations apply to these professions.
Trade Regulation Act