Recruiting in Germany does not always require setting up a company there. It does require knowing under which regime a foreign employer is allowed to file returns and pay contributions, and on what conditions.
Three routes generally exist: registration of the foreign employer with the local bodies, the use of an employer of record established on the spot, or the creation of a structure. The first is the least costly but presupposes a local correspondent able to file the returns in the language and to the calendar of the country; the second moves the employment relationship to a third party, which is not neutral in law. The choice is made in the light of the number of employees, the duration envisaged and what local law actually permits.
The employee chooses their own health insurance fund (Krankenkasse), and that fund becomes the employer's counterpart for all social contributions. Affiliation to the relevant Berufsgenossenschaft, the sector accident insurance institution, is added on top.
In Germany, two registrations nevertheless come before the first filing. A company must obtain an establishment number (Betriebsnummer) from the federal employment agency before reporting a first employee, then a tax number from the competent Finanzamt (tax office) for wage tax withholding.
Written evidence of the essential terms of the employment relationship is required as a minimum by law, and a written contract is standard practice. Look closely at the probation period, the notice period and any non-compete clause, which is valid only where financial compensation is stipulated.
Wage tax withholding (Lohnsteuer) is compulsory and draws on the employee's electronic tax data; returns are periodic and their frequency depends on reported volume. Social contributions require a declaration to each fund and payment in advance during the month itself, a mechanism that regularly unsettles foreign treasury teams.
The Kündigungsschutzgesetz (Protection Against Dismissal Act) governs the end of the contract once a given headcount and length of service are reached, and the works council, where one exists, must be consulted before any dismissal takes effect.
In Germany, running payroll on behalf of third parties is a regulated activity. It is carried on under the title of Steuerberater ; à défaut, intervenant relevant de l'exception « Buchführungshelfer » du § 6 Nr. 4 StBerG, and a registration in force must be produced to you before any engagement.
Professional body or supervisory authority : Bundessteuerberaterkammer et Steuerberaterkammern des Länder
| Local wording | Issuing body | Validity | Source |
|---|---|---|---|
| Handelsregisterauszug (aktueller Ausdruck, Abteilung B)Commercial register extract Réclamer un « aktueller Ausdruck » récent, avec le numéro HRB. Une entreprise individuelle ou une GbR non immatriculée au Handelsregister produira à la place sa Gewerbeanmeldung (Gewerbeschein) délivrée par le Gewerbeamt de la commune. | Amtsgericht — Registergericht ; portail commun des Länder | 3 months Required | Official website |
| Umsatzsteuer-Identifikationsnummer (USt-IdNr.) et SteuernummerVAT identification number and tax number Ne pas confondre la Steuernummer (attribuée par le Finanzamt local, utilisée pour les déclarations) et la USt-IdNr. au format DE + 9 chiffres, seule utilisable pour la facturation intracommunautaire et vérifiable via VIES. | Bundeszentralamt für Steuern (BZSt) pour la USt-IdNr. ; Finanzamt pour la Steuernummer | No expiry Required | Official website |
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