Many essential prerequisites have to be met in order to execute a commercial trade in Germany. Carrying out a commercial trade under negligence of the following essential requirements can inevitably result in difficulties in the process of residency and also for further employment in Germany. Many companies require a trade registration from European workers. Even though this may not seem to be an obstacle at first, not registering a commercial trade may have a negative impact on receiving payments for works done.
We ensure that all prerequisites met and all documents are available for a self-employed contractor.
Many companies communicate the failing of documents at the stage of invoicing. They are thus entitled to withhold salaries until the missing documents have been handed in. This causes a delay in payment for works that have been carried out.
The following steps and documents are necessary for admission and invoicing in the construction sector:
Place of Residency / Business Location
The registration of a commercial trade cannot be done without the accessibility to an address of residence or to a business location. This ensures the reachability for all business matters.
Commercial Trade registration
It is mandatory to register a commercial trade at the local city hall before starting a self-employed operation. This should be done at the place of residency or at the business location.
It is absolutely essential for subcontractors to have a “certificate of exemption” according §13b of the German tax law. Business partners will not settle any payments without this document.
Chamber of Crafts
The Proof of registration at the chamber of craft is mandatory. Upon registration, the authorities issue an identification which should always be carried along.
Employer Liability Insurance Association
Being an independent contractor, it is not a legal obligation to have an insurance. A certificate of non-objection needs to be issued.
Social Health Insurance for Construction Business
It is required of most companies to have a social coverage for the employees only, but not for the employer. A certificate of non-objection should be applied for.
In order to be covered in a medical situation or in case of an accident, it is necessary to have a health insurance membership. The respective proof of membership in form of an insurance verification goes for all contractors.
Company Liability Insurance:
The proof of a company liability insurance, which covers the cases of damage or destruction, should be forwarded with the issuing of an invoice.
Payments without one or more of the above requirements will inevitably have an impact on the timely salary payments. The legitimate clearance for a timely payment is given, if all of the above steps are followed and all the required proofs and documents mentioned above are handed in.
The applications will take some time, but works can be carried out during the application process. We will ensure that your documents are complete before invoicing.
In order to do this, we require:
•An expense allowance of 390 Euro . This covers all costs for the paper works and visits to the authorities, and is due upon issuing the written authorization.