Kleingewerbetreibende Einzelpersonen (Small Traders)

The simplest form for setting up an enterprise is the registration of a trade with the competent authority. Registration forms can be obtained there. Registration is made exclusively with the first name and name of the entrepreneur. The trade supervision office checks whether the carrying on of the trade requires a licence under trade and industry law.

An administrative offence is committed by any person who does not submit an application for registration of the trade or fails to submit it properly, completely or in due time. Administrative fines or enforcement measures may be imposed.

The trade files of the trade supervision offices are not public registers. Consequently, an inspection by private persons is not possible. The trade authorities do, however, provide information on request about the name, the business address and the activity of the trade. There is no legal claim to obtaining such information.

Traders for whom no business name has been entered in the commercial register must specify on all business letters their family name with at least one full first name. Any additions such as the description of the business activity, logos or the similar may be admissible. It is recommended to clarify the concrete design and/or use with the competent Chamber of Commerce and Industry.

The obligation to state the correct name serves primarily the purpose of protecting creditors. If, for instance, a small trade operated only under the designation "ABC Real Estate" and if it then relocated its office, it would be almost impossible for creditors to trace it under this designation since the registration under this designation cannot e found in a public register. For that reason the name of the entrepreneur would not be identifiable either.

A small trader is liable with his entire business and private assets vis a vis his creditors. This risk can be restricted by taking out appropriate insurance policies.