Looking for open small business!

Question

Hello , Here is Yazan

I would like to know about some information  for open a small business in Berlin (corner shop for fast food) and i would like to know how it work especially for refugees who got residency permission for 3 years.

So I want to all of the details about open a Small corner shop (how much does the corner shop renting cost (approximately) and what is the paperwork for it precisely?

How does the taxing system work in Germany?

(Note that the person is getting support from the Job Center in this moment)

Answer 1

Hi Yazaan,

the person needs to register it as a business (Gewerbeanmeldung). It also needs to register it with the tax office.

You have also the Option to Register at the Trade Register (Handeslregister) which may help if you need a bank credit.

As regards taxes: I strongly advise you/your friend not to do it on your own at the beginning but to seek the help of a tax adviser to assist you. Further: good bookkeeping is important (also for your expenses) so that you do not pay too many taxes at the end.

If you are just a single person (no corporation) the income will be taxed at progressive tax rate depending on the total profit. Further the business will be subject to VAT (which should be neutral as you can also claim Input VAT on goods and Services received). Please note that you have duties to hand in tax returns for VAT normally on a monthly basis not only on a yearly basis.

The Person will probably get a Gründerzuschuss/Gründerkredit by the Job Center...

Comments

Thanks for the information @Marcel

Answer 2

Hello Yazan,

welcome to our community :)

As soon as you got your residence permit for 3 years you are allowed to work. That includes working self-employed.

I can't give you a general answer on how expensive the rent is going to be. That depends on too many factors e.g. in which area of Berlin you want to open your shop, how many square meters you want to rent etc.

We have had similar questions to your here on the platform in the past. Maybe the information given there is helpful to you. The first link provides insights about self-employment in Germany in general, while the second one focuses on the topic of opening a restaurant (including an overview of the paperwork that needs to be done):

https://www.wefugees.de/k/questions/1697

https://www.wefugees.de/k/questions/1772

Furthermore I will link @Marcel who is an experienced lawyer concerning labour market access. If you need detailed information e.g. concerning the required papers he will probably be able to help you with that.

I hope my answer was helpful to you. Feel free to ask further questions if necessary.

Best regards,
Thorgen

Comments

Thank you for your answer @Thor

Answer 3

Starting a business in Germany can be really difficult! We run an entrepreneurship program called Ideas in Motion, which supports newcomer entrepreneurs to get their startup or small business started. We’re based in Berlin, and we’re currently accepting applications for the next round, which lasts from November 2017 to May 2018. If you want to open a business, we provide an intensive and structured program to do it, including legal and tax advice. You can find out more about the program and find the application here: http://ideasinmotion.de/

We are holding an information event on Oct 25th for all interested applicants, find information here: https://www.facebook.com/IdeasInMotionBerlin/

Hope to see you there!