Info on starting a small one-person business

I´m Australian, and have had several years experience in organising parties, functions and so on hence I would like to start up my own (but alone) small business in Party planning. My friend suggested that it´s possible as a GBR however, I´m not sure how much capital is needed to begin, what the expenses are, paperwork and so on. My husband also suggested that there is a possibility to receive some financial help from the Governemt (ich ag) but have also heard that this is no longer in existance, are there any other options...Help.. I don´t even no where to begin...my head is full and need clear information or help...

A GbR is a formal partnership, which by definition is 2 or more people (or business entities). It requires a formal contract between participants, nothing more. In the early stages at least there's nothing stopping you registering yourself as self-employed to start your "business", assuming, as an Australian you are permitted to work here in such a manner. There used to be rolling grants for start-ups ("Ich AGs"), but most of these have been stopped. You may get support for business loans depending on the approach you take, but the paperwork to apply for these (including business plans) can be onerous, and of course, must be in German. You might want to talk to the Industrie- und Handelskammer für München und Oberbayern which is a sort of chamber of commerce and may have all sorts of ideas, recommendations and support avenues.

You can run an LTD here in Germany.. much cheaper than a GMBH which is what I think you wanted to say.. a German Corporation... If you are running the company yourself, you will not be using a Partnership b/c partnerships need two legal entities. if you have one Pound, you can start the LTD. Of course you will need to pay for the formation of the LTD but that will not be that much... look on the internet, there are lots of companies that will help you. You can also find English Speaking accountants here in Munich who will help you file all the tax paperwork each year.

Good Luck!

My tuppence worth is to go Ltd or the dreaded Gmbh route 'cos with a GBR you are personally liable. My guess is that with "party planning" you might in future get a job from a company that is €50,000 and you need to lay out €30,000 to suppliers in advance etc. Your customer goes bust and you are stuck personally with the debt. If it is Ltd you walk away - not ideal but safer for you.

But for a GMBH don´t you need to have like a rediculous amont of money to commence or register? As a GBR no capital is required?

Ridiculous is a relative term. €25,000 of which €12,500 must be paid up (but still commited legally to the full €25,000).

But I have a GBR and a UK Limited - I did not want a Gmbh either. So UK Ltd is perhaps your best route. GBR is OK I think if you are in a zero risk business, but I can see things going potentially wrong in party planning.

But the downside of a UK Ltd is that lots of people in Germany immediately asssume you are a crook (they have a bad reputation here). Also if trading pretty much 100% here then you need to also register the UK Ltd here. That is a bit tedious (you need to get certified translations etc).

And amusingly the VERY FIRST THING you get when you register your UK Ltd is a tax bill for immediate payment from the German authorities. I shit you not. You have to estimate your possible profits for the first 2 years - and they then hit you with a tax bill. It is rude.

EAnnR:
The best advice is definitely to speak to the IHK as mentioned in post #2.

They have an English-speaking employee who will answer ALL of your questions - FREE OF CHARGE.

They also have an information pack (in English) called "Setting up one's own business" which explains the differences between all the different types of company which can be started in Germany.

Taken from my own copy of this document, they types are:

Sole Proprietorship (Ich AG) 1 Founder
Civil-Law partnership (GbR) At least 2 founders
General Commercial Partnership (oHG) at least 2 founders
Limited Commercial Partnership (KG) at least 1 personally liable partner, 1 limited partner
Silent Partnership - at least 1 entrepreneur and 1 silent partner
Private Limited Company (GmbH) at least 1 partner
Stock Corporation (AG) at least 1 shareholder
Registered cooperative (e.G) at least 7 members


I set up my own business during 2006 and found the IHK to be the best source of help and information.
Take the advice here and use them.
MT

thank you so much for your advice..I will do that..nice to know that there can´t be any form of miscommunication!

I was just at the IHK website...help...I don´t know where the link is to seek advice in English...and get further information..

To be frank, I don't fancy your chances establishing and running a company here in Germany if you can't speak any German.

I don´t like your chances of starting a business if you don´t speak any German"

Well actually I do speak German and I understand it well, but the website as far I could tell was primarily for only workshops, perhaps I missed a link.

But it can certainly be done!

only partly correct, GmbH with single shareholder full payment has to be made or a security given for the full share capital