Most commercial activity only needs a notification to the local trade office, but some activities need a register entry or licence, such as skilled crafts listed in Annex A of the Crafts Code. Public contracts above EU thresholds are awarded under Part 4 of the Competition Act. Foreign entities that own or acquire German real estate must report their beneficial owners to the Transparency Register, and acquisitions in listed sensitive sectors are subject to investment screening.
Trade notification and licensed activities
Starting a standing trade, a branch or a dependent branch office must be notified to the competent local authority. This is a notification, not a permit, but specific activities need more.
Independent operation of a licensed craft listed in Annex A of the Crafts Code requires entry in the craft register (Handwerksrolle). Activities that can be learned within three months, or that are minor to the trade, are not treated as essential craft activities. Financial services, insurance broking, property brokerage and other regulated activities have their own permit regimes that were not reviewed here.12
Public procurement
Part 4 of the Competition Act (GWB) governs public contracts, concessions and design contests whose estimated value excluding VAT reaches the EU thresholds. The thresholds are set by reference to the EU procurement directives as amended, so the euro amounts change when the EU revises them. Contracts below the thresholds follow separate budget-law rules not covered here.3
Real estate held by foreign entities
A company or other association with its seat abroad that owns, or undertakes to acquire, real estate in Germany must report its beneficial owners to the Transparency Register. The duty also reaches certain share deals under the Real Estate Transfer Tax Act. Notaries and other parties will expect to see the registration before completing a transaction.4
Sensitive sectors
Investment screening treats certain sectors as most sensitive, including critical infrastructure operators, makers of critical components and sector-specific software, certain telecoms and surveillance technology firms, large cloud providers, health telematics, influential media and government communications. For these, review starts at 10 percent of voting rights and notification is mandatory after signing; further listed sectors such as defence goods, artificial intelligence and quantum technology have a 20 percent threshold.567
| Situation | What is required | Where |
|---|---|---|
| Starting a standing trade, branch or dependent branch | Notification on commencement | Competent local authority (trade office) |
| Independent operation of a craft listed in Annex A of the Crafts Code | Entry in the craft register before starting | Craft register (Handwerksrolle) |
| Public contract at or above the EU threshold | Award under Part 4 GWB | Contracting authority |
| Foreign entity owning or acquiring German real estate | Beneficial ownership report | Transparency Register |
| Non-EU acquisition of a company in a listed sensitive sector | Notification after signing | Federal economics ministry |
Documents usually needed
- Trade notification form with identity documents and commercial register extract
- Evidence of craft qualification where an Annex A craft is carried on
- Beneficial ownership information for foreign entities holding German property
- Sector licences or permits where the activity is regulated
Common mistakes
- Starting operations before notifying the trade office.
- Overlooking that a planned activity is a licensed craft requiring entry in the craft register.
- Relying on outdated procurement threshold amounts; they follow the EU directives as amended.
- Foreign property-holding companies failing to register their beneficial owners before buying German real estate.
When the business crosses borders
- Foreign entities holding German real estate are brought within the Transparency Register even though they are not registered in Germany.
- Non-EU investors in listed sensitive sectors face mandatory notification and a 10 or 20 percent review threshold.
Questions businesses ask
Is there a general business licence in Germany?
No general licence was identified: starting a trade requires a notification to the local authority. Specific activities, such as licensed crafts, require a register entry or permit.12
Does a foreign company buying German property have to register anything?
Yes. A foreign entity that owns or undertakes to acquire German real estate must report its beneficial owners to the Transparency Register.4
What this guide does not yet confirm
These points need checking with a qualified local professional in Germany before you rely on them.
- Banking, payment and insurance licensing by BaFin (Banking Act and related laws) was not confirmed.
- Permit categories under the Trade Regulation Code (for example property brokers and insurance intermediaries) were not reviewed.
- Current EU procurement threshold amounts were not confirmed.
- Real estate transfer tax rates, which are set by each state, were not confirmed.
- Investment incentives and regional aid programmes were not reviewed.
- Whether any general restriction applies to foreign ownership of German real estate was not confirmed on an official page.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 18 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
Anyone starting an independent standing trade, a branch or a dependent branch office must notify the competent authority at the same time. Trade notification (Gewerbeanzeige) under the Trade Regulation Code; applies to subsidiaries, branches and dependent establishments.
Only persons entered in the craft register (Handwerksrolle) may independently operate a licensed craft listed in Annex A of the Crafts Code. Applies to natural persons, legal entities and partnerships; activities learnable within three months or minor to the trade are not essential activities.
The EU-law procurement rules in Part 4 of the Competition Act apply to public contracts whose estimated value excluding VAT reaches the thresholds set in the EU procurement directives, as amended from time to time. Public contracts, concessions and design contests; thresholds follow Directive 2014/24/EU, 2014/25/EU, 2009/81/EC and 2014/23/EU.
Associations with their seat abroad that own, or undertake to acquire, real estate in Germany must report their beneficial owners to the Transparency Register. Foreign companies and other associations holding German real property, including certain share deals under the Real Estate Transfer Tax Act.
Sectors treated as most sensitive for investment screening include operators of critical facilities, makers of critical components and sector-specific software, certain telecoms and surveillance technology firms, large cloud providers, health telematics providers, influential media and providers of government communications infrastructure. § 55a Abs. 1 Nr. 1–7 AWV (10 percent review threshold); the list continues to Nr. 27 covering, among others, defence-related goods, artificial intelligence, quantum technology and pharmaceuticals.
Investment review is triggered when a non-EU acquirer reaches 10 percent of the voting rights in companies in the most sensitive listed sectors, 20 percent in the other listed sectors, and 25 percent in any other domestic company. 10%: companies listed in § 55a Abs. 1 Nr. 1–7 AWV; 20%: Nr. 8–27; 25%: all other domestic companies. Direct or indirect holdings after the acquisition.
A non-EU acquirer must notify the federal economics ministry without delay after signing a contract to acquire a domestic company in any of the sectors listed in § 55a Abs. 1 Nr. 1–27 AWV. Mandatory notification for sector-listed targets; for public takeover offers, notification follows publication of the decision to make the offer.
Questions on this topic
4 statements on licensing, sector rules and real estate in Germany
