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].
Related to “Gewerbetreibender”
Here are some additional terms that are related to “Gewerbetreibender”:
- FreiberuflerFreiberufler, literally translated as "freelancer" in English, refers to self-employed professionals in Germany who offer specialized services based on their... More: 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].
- GewerbesteuerThe term "Gewerbesteuer" translates to "trade tax" in English and refers to a tax levied on the income of businesses... More: The trade tax that a “Gewerbetreibender” must pay if their profit exceeds the tax-free allowance[1][4][5].
- GewerbeanmeldungGewerbeanmeldung translates to "trade registration" in English. It is a mandatory step for individuals in Germany who wish to start... More: The process of registering a trade with the local trade office[3][17].
- GewerbescheinA Gewerbeschein, literally translated as "trade license" in English, is a document issued by the local trade office (Gewerbeamt) in... More: 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.