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What does "Gewerbetreibender" mean in English?

Last updated on 5 April 2024

A “Gewerbetreibender” is a term used in Germany to describe a self-employed individual whose business is registered as a trade. The literal translation in English is “trader” or “business operator”.

What is “Gewerbetreibender”?

In Germany, a “Gewerbetreibender” is any self-employed person whose enterprise is classified as a trade. This classification is distinct from professions considered “freie Berufe” (liberal professions) such as doctors or lawyers, who are not required to register a trade. A “Gewerbetreibender” must register their business with the local trade office and is subject to trade tax if their annual profit exceeds €24,500[1][2][3]. This type of business is characterized by its intention to generate profit, its permanence, and its operation outside of agriculture, forestry, fishing, mining, and the liberal professions[1][2][3].

More information about “Gewerbetreibender”

A “Gewerbetreibender” has full liability with their private assets, which means in case of bankruptcy, they could face personal insolvency[1]. The registration process involves filling out a tax registration questionnaire and registering with the local trade office, which is associated with a fee[2][3]. The trade tax amount is calculated based on a multiplier that varies from municipality to municipality[4][5].

Here are some additional terms that are related to “Gewerbetreibender”:

  • Freiberufler: A self-employed individual who practices a liberal profession and is exempt from trade tax[2].
  • Kleingewerbe: A small business or trade that benefits from simplified tax and accounting regulations[3][7].
  • Gewerbesteuer: The trade tax that a “Gewerbetreibender” must pay if their profit exceeds the tax-free allowance[1][4][5].
  • Gewerbeanmeldung: The process of registering a trade with the local trade office[3][17].
  • Gewerbeschein: The trade license or certificate received upon registering a trade[17].

Understanding the role and responsibilities of a “Gewerbetreibender” is crucial for anyone looking to start a business in Germany, as it affects legal and tax obligations.

Sources

[1] https://finom.co/de-de/glossary/gewerbetreibender/ [2] https://www.accountable.de/en/blog/freiberufler-or-gewerbe/ [3] https://www.accountable.de/en/blog/gewerbe/ [4] https://www.fuer-gruender.de/wissen/unternehmen-gruenden/finanzen/steuern/gewerbesteuer/ [5] https://kleutgens-advisors.com/steuern-im-gewerbe-alles-was-sie-wissen-muessen/ [6] https://www.freefinance.de/steuern.html [7] https://www.steuertipps.de/selbststaendig-freiberufler/klein-gewerbe [8] https://blog.holvi.com/expat-guide-to-freelancing-freiberufler-vs-gewerbetreibender [9] https://www.tk.de/firmenkunden/service/fachthemen/ausland/mitarbeiter-anmelden-ohne-deutschen-firmensitz-2088296 [10] https://www.accountable.de/blog/steuern-gewerbetreibende-pflichten-rechte-spartipps/ [11] https://www.kleingewerbe.de [12] https://www.fuer-gruender.de/wissen/existenzgruendung-planen/recht-und-steuern/rechtsform/ [13] https://www.ihk.de/hamburg/produktmarken/beratung-service/gruendung/recht-fuer-gruender/gewerberechtliche-voraussetzungen-selbststaendigkeit-1169696 [14] https://www.9am.works/freelancer-academy/blog/freiberufler-or-gewerbe [15] https://www.bmwk.de/Redaktion/DE/Textsammlungen/Mittelstand/gewerberecht.html [16] https://www.sumup.com/de-de/rechnungen/lexikon/gewerbetreibender/ [17] https://www.fastbill.com/blog/gewerbeschein [18] https://www.bundestag.de/resource/blob/650230/cd6ab629ef4c2125e63c542011d552bb/WD-6-050-19-pdf-data.pdf [19] https://www.lexoffice.de/lexikon/gewerbetreibender/ [20] https://www.fuer-gruender.de/wissen/unternehmen-gruenden/versicherung/pkv/sozialversicherungspflicht/