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What does "Gewerbe" mean in English?

Last updated on 5 April 2024

Gewerbe translates to “trade” or “business” in English. It refers to a self-employed commercial activity in Germany, encompassing a wide range of businesses from small craft shops to large manufacturing companies.

What is “Gewerbe”?

In Germany, a Gewerbe is any independent, sustainable activity undertaken with the intention of making a profit, excluding agriculture, forestry, liberal professions, and artistic or scientific activities. Registering a Gewerbe is a necessary step for most types of businesses, allowing them to operate legally within the country. This process, known as Gewerbeanmeldung, involves obtaining a trade license (Gewerbeschein) and registering for trade tax (Gewerbesteuer)[1][5][8][12][19].

More information about “Gewerbe”

The term Gewerbe covers a broad spectrum of activities, from individual craftsmen and retail shops to large industrial enterprises. It is distinguished from Freiberufler (freelance professions), which include jobs that require special qualifications, such as doctors, lawyers, and engineers, and do not require Gewerbeanmeldung. A key aspect of running a Gewerbe is the obligation to pay Gewerbesteuer, which is calculated based on the business’s profit[1][5][8][12][19].

Here are some additional terms that are related to Gewerbe:

  • Gewerbeanmeldung: The act of registering a business at the local trade office, a necessary step for obtaining a Gewerbeschein and becoming officially recognized as a Gewerbe[1][5].
  • Gewerbeschein: A trade license received upon successful Gewerbeanmeldung, signifying official permission to operate a Gewerbe[1][5].
  • Gewerbesteuer: A tax levied on the profit of a Gewerbe, with rates varying depending on the municipality[3][14].
  • Freiberufler: Professionals with special qualifications who sell their services and are not required to register a Gewerbe[17][19].

Understanding these terms is crucial for anyone looking to start or operate a business in Germany, as they form the foundation of the country’s commercial regulatory framework.

Sources

[1] https://allaboutberlin.com/glossary/Gewerbeanmeldung [2] https://mystartupgermany.com/sole-trader-guides/gewerbeanmeldung-register-a-business-in-germany/ [3] https://germantaxes.de/tax-tips/business-tax-gewerbesteuer/ [4] https://dictionary.cambridge.org/us/dictionary/german-english/gewerbe [5] https://blog.holvi.com/how-to-register-your-business-in-germany-2021 [6] https://redtapetranslation.com/obtaining-a-gewerbeschein/ [7] https://www.collinsdictionary.com/us/dictionary/german-english/gewerbe [8] https://www.accountable.de/en/blog/gewerbe/ [9] https://www.clevver.io/business-registration-in-germany-the-ultimate-guide/ [10] https://taxsummaries.pwc.com/germany/corporate/taxes-on-corporate-income [11] https://www.germany.info/us-en/service/09-Taxes/taxes-income/913924 [12] https://allaboutberlin.com/glossary/Gewerbe [13] https://www.german-tax-consultants.com/german-taxes/local-business-tax-gewerbesteuer.html [14] https://allaboutberlin.com/guides/gewerbesteuer [15] https://en.langenscheidt.com/german-english/gewerbe [16] https://taxsummaries.pwc.com/germany/individual/other-taxes [17] https://www.accountable.de/en/blog/freiberufler-or-gewerbe/ [18] https://n26.com/en-eu/blog/self-employed-in-germany [19] https://allaboutberlin.com/guides/freiberufler-or-gewerbe [20] https://www.firma.de/en/company-formation/gewerbeanmeldung-everything-you-need-to-know-about-trade-registration-in-germany/