Permits and licences for your side business in Germany: when to look more closely

Why this matters

Most side businesses in Germany do not need a special permit for everything. But some activities are more sensitive: food, health, skilled trades, security, brokerage, financial topics, passenger transport, hospitality, or heavily regulated services. If you check too late, you end up building your website, offers, and pricing on an uncertain foundation.

Turn knowledge into a start plan

This guide explains one topic. Whether it is really a priority for you right now depends on your answers in the start plan.

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Not every business requires a permit — but some do

In Germany, the principle of freedom of trade (Gewerbefreiheit) generally applies, but certain activities may require approvals, permits, licences, proof of expertise, or other documentation. This does not apply to every start, but it is an important filter to work through.

For a side business in Germany, the right question is therefore not: What permit do I definitely need? But rather: Are there any signs in my activity of regulation, duty of care, health, safety, skilled trades, food, advice, brokerage, or handling other people's assets?

This check should happen before you go public — not after your first customer enquiries come in.

Typical warning signs that a closer look is needed

Additional authorities often become relevant when your offer involves close physical contact with people, food, skilled trade work, high-risk advice, security, brokerage, financial matters, or a local premises with public foot traffic.

Example questions to ask yourself: Do you work with food? Do customers come to your premises? Do you work with cosmetic products? Do you repair or install things? Do you hold other people's valuables? Do you broker property, loans, or insurance? Do you offer coaching in sensitive areas?

These examples are not a complete list. They are meant to help you identify risk areas and know which authority to contact.

Where to start checking

Good first points of contact are the Gewerbeamt (local trade registration office), the IHK (Chamber of Commerce and Industry), the HWK (Chamber of Skilled Crafts), the local business development office (kommunale Wirtschaftsförderung), or the relevant specialist authority. For skilled trade activities, the HWK is particularly important; for many other commercial activities, the IHK is the right starting point.

Depending on your activity, the following may also become relevant: Gesundheitsamt (public health office), food safety authority (Lebensmittelüberwachung), Ordnungsamt (public order office), Bauamt (building authority), data protection supervisory authority (Datenschutzaufsicht), employers' liability insurance association (Berufsgenossenschaft), registration bodies, or professional chambers.

If your activity combines several areas, check the intersections carefully. An online shop selling food is not just e-commerce. A handmade product can touch on skilled trades, packaging, product safety, and sales channels all at once.

How to phrase your enquiry to an authority

Describe not just your brand, but the specific activity: What is being offered, where does it take place, who are the customers, what materials or products are involved, are there premises, storage, shipping, appointments, or staff?

The more specific your question, the more useful the answer. Instead of 'Do I need a permit for my shop?' try: 'I want to sell self-designed ceramics online from home, including shipping, with no customers visiting my premises. Which authorities should I check with before registering?'

Keep a record of responses and links. This will help you later with your registration, business plan, risk assessment, and start plan.

Why this does not have to hold you back

Permits can sound like bureaucracy, but often the most important step is simply doing the check properly. Many plans require no special permit at all — others just need a clear classification or a single piece of documentation.

For founders, the goal is not to be paralysed by fear and never start. The goal is not to publicly sell a service when you already knew beforehand that a check was needed.

Quick checklist

Does your activity involve food, health, physical contact with people, skilled trades, or security?
Are there customer appointments, premises, storage, a workshop, on-site sales, or public events?
Do you broker money, insurance, property, contracts, or other sensitive services?
Have you identified the IHK, HWK, or relevant authority as your first point of contact?
Can you describe your activity clearly in a specific enquiry?
Have you documented responses and any relevant documentation?

Common mistakes

Assuming that a side business automatically has fewer obligations than a full-time business.
Winning customers first and only then checking whether the activity is permitted or subject to registration.
Describing mixed activities too simply to make them sound more straightforward.
Treating information from online forums as a binding answer.
Confusing permits with tax matters. The Finanzamt and the licensing authority answer different questions.

What this guide can and cannot do

This guide helps with

review your activity for possible indicators that a closer check is needed
help you prepare an enquiry to the IHK, HWK, Gewerbeamt, or a specialist authority
help you distinguish permit-related questions from tax and accounting topics

This guide does not replace

make a binding determination of whether a permit is required
replace or submit official permits on your behalf
provide legal advice for your individual situation

Official sources

For binding information, always check the official bodies. The links below are starting points, not a final review of your case.