CYPRUS – MESI COURSE (ENGLISH) - Vifin Course Creator

Introduction - Formalities and public authorities

There are some differences between traders and freelancers regarding the suitable legal structure. The choice is limited for the freelancers, though there are some special legal forms, especially with regard to the liability limitation. Freelancers do not register at the Trade Office but directly apply for a tax number at the Tax Office (Finanzamt).

First of all you should check in advance with the Chamber of Industry and Commerce or the Chamber of Skilled Crafts to find out what you need in order to register your business. You can also use the services offered by the municipal authorities and regional business development units. Also the municipal authorities can tell you if you need any special certificates, permits or preconditions.

A person who starts a company and who is not a freelancer is a trader. Traders have to register their business at the Trade Office (Gewerbeamt) in the municipality where they are going to start their business.

Business people and companies like the Limited Liability Company (GmbH) have also to be registered in the electronically Commercial Register (Handelsregister). Usually you do that with a notary (Notar).

If your business is part of the craft sector that needs a licence you will have to ask for an exception for your registration in the Trade Register (Gewerbeamt) at the Chamber of Skilled Crafts (Handwerkskammer).

Trade Office

Before you want to launch your company you have to register your business with the Trade Office [Gewerbeamt] in the municipality in which it is to be established. It is important to describe your commercial activity in as much detail as possible.

What you need in order to register your business is:

A valid ID document or passport,
Depending on the activity (e.g. food service), a permit or approval,
A crafts card if you are planning to set up a business in the skilled crafts sector,
A trade card for activities similar to those in the skilled crafts sector,
A residence permit that also allows you to pursue a self-employed commercial activity,
Between ten and forty euros for the registration fee,
A police clearance certificate or information from the Central Commercial Register may be required.

Trade Office

But what do you need before you go to the Trade Office?

Know exactly what kind of business and what type of the legal structure your future company will have (before registering your business, contact the Chamber of Industry and Commerce or the Chamber of Skilled Crafts to find out about the preconditions that apply to your project).
Permission (contact the Chamber of Industry and Commerce or the Chamber of Skilled Crafts in advance in order to find out whether your business requires a permit and which preconditions you have to fulfil).
Choose the location where you will set up your business (many municipalities offer space for incubators).

public authorities AND Formalities – Chambers

Public authorities AND Formalities – Chambers

Before you go to the Trade Office it is highly recommended to go to either the Chamber of Industry and Commerce [Industrie- und Handelskammer (IHK)] or to the Chamber of Skilled Crafts [Handwerkskammer (HWK)]. Both chambers have specialized consultants for start uppers. They also offer customized courses for founders.

In the following paragraphs the role, the function and the tasks of the chambers in Germany will be described.

public authorities AND Formalities – Chamber of Industry and Commerce

Public authorities AND Formalities – Chamber of Industry and Commerce

Chamber of Industry and Commerce [Industrie- und Handelskammer (IHK)]

You should understand that all the companies in Germany (with the exception of the skilled crafts, the liberal professions and farmers) are members of the Chamber of Industry and Commerce. Membership with the Chamber of Industry and Commerce is required by law and a membership fee is charged. Businesses automatically become a member as soon they have been registered with the Trade Office. The Chamber offers a lot of services such as:

Consultancy for start uppers,
special seminars like accountancy, law for a limited liability company (GmbH) and vocational training etc.,
special examinations e.g. for professional drivers.

Public authorities AND Formalities – Chamber of Skilled Crafts

Chamber of Skilled Crafts [Handwerkskammer (HWK)]

As we said before all companies in Germany are member by law in a chamber. This means that if you are about to open your business in the craft sector you will automatically become a member of the Chamber of Skilled Crafts and a membership fee will be charged.

Also this Chamber offers a lot of services such as:

Consultancy for start uppers,
special seminars like vocational training for hair dressers, special courses in the field of construction, courses on AutoCAD etc.
special examinations e.g. for master craftsman's examination.

Public authorities AND Formalities – chambers of liberal professionals

You have seen previously that membership in a chamber in Germany is obligatory by law. To complete our list we will name some examples of chambers of the liberal professionals:

There is a certain group of professions which is related to the chambers of the liberal professionals respective to their business such as doctors (Ärztekammer), architects (Architektenkammer) and engineers (Ingenieurskammer) etc.

The chambers have such services as:

Consultancy for start uppers,
special training for the representatives of these professions,
internship for trainees.

public authorities AND Formalities – Tax office – TAX NUMBER

Public authorities AND Formalities – Tax office – TAX NUMBER

If you are a freelancer you have to apply for a tax number at the Tax Office [Finanzamt] yourself. From them you will receive the "Questionnaire for tax registration“. You will have to complete the questionnaire, providing details of your future sales and profits. You should give the realistic information of your expected sales and profits.

If you set up a business in the trade or craft sector and have been registered at the Trade Office, you will automatically receive the "Questionnaire for tax registration" from your Tax Office [Finanzamt]. You will have to complete the questionnaire, providing details of your future sales and profits. You should give the realistic information of your expected sales and profits.

Public authorities AND Formalities – further authorities

There are some other authorities you need to know if you wish to start your business in Germany:

Construction Office [Bauamt]

You should contact with this office if you want to use rooms or a building for other purposes than were previously used.

Public Health Office [Gesundheitsamt]

Especially in the case for start-uppers in the field of catering you have to contact the Public Health Office. You will learn from the Public Health Office [Gesundheitsamt/Fachdienst Gesundheit] or a commissioned doctor if you have to attend certain instruction courses and to do exams. The Public Health Office can give you also permits or clearance certificates.

Employment Agency [Agentur für Arbeit]

The Employment Agency have to give you a 8-digit company number if you plan to employ people in regular jobs, mini-jobs or trainees.

Thoughts and reflections

What are your thoughts and reflections on this section?

What do you need to do now?

When are you planning to do it?

Who can help you doing it?

E-mail:

Sending e-mail...

E-mail sent!

Section completed

Test result

Your score:

You got out of correct.

Exercise	Result	Your answer	Correct answer

Try again

Start next lesson

Kursus oversigt

Introduction to MESI platform

Introduction to modules and platform implemented

Glossary implemented

Module 1: Introduction to entrepreneurship - entrepreneurial attitudes and skills

Introduction to module implemented

Entrepreneurship implemented

Traits and attitudes of an entrepreneur implemented

Developing your own business idea implemented

Assessing your business idea implemented

Developing a Business Plan implemented

Module 1: Quiz 13 out of 14

Module 2: Legal and regulatory framework

Introduction to module implemented

1 Introduction and requirements under the residency law implemented

2 Legal structures and regulatory framework implemented

3 Formalities and public authorities implemented

4 Taxes implemented

5 Insurances implemented

6 Legal regulations & Contracts implemented

Module 2: Quiz 8 out of 9

Module 3: Strategic planning and project management

Introduction to module implemented

1 Introduction implemented

2 Strategic planning – creating vision and goals implemented

3 Strategic planning – analyzing possibilities implemented

4 Project management implemented

5 Time management implemented

Module 3: Quiz 13 out of 14

Module 4: Access to markets

Introduction to module implemented

Introduction – from idea to market implemented

Understanding your market implemented

Understanding your customers implemented

Developing your products or services implemented

Marketing and sales implemented

Module 4: Quiz 16 out of 17

Module 5: Understanding the local business culture

Introduction to module implemented

Introduction implemented

Communicating across cultures implemented

Verbal communication etiquette in business 6 out of 7

Non-verbal communication etiquette in business implemented

Active listening and empathy not started

Module 5: Quiz not started

Module 6: Funding and fundraising

Introduction to module implemented

Introduction implemented

Funding your business idea implemented

Different types of funds implemented

NABC implemented

Investor Pitch not started

Module 6: Quiz not started

For trainers / teachers

Inspirational material implemented