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Conducting business activities with a foreign trade license

Business activities in the territory of Germany

You may conduct business activities in the territory of Germany with a trade license from your home country if your business activities are defined as a free trade in Germany. If your business activities are regulated according to German law, you should notify the German chamber of craft which is related to the first place of your business activities in Germany before the actual work is carried out.


The chamber will examine whether your previous practical experience and qualifications make you eligible to carry out work abroad, and in case of positive evaluation, you will receive a certificate with the validity period of one year, during which you may carry out the business in Germany as a foreign entrepreneur.

In conducting business activities with a foreign trade license, it is also important to consider a maximum allowed period of business activities in Germany in relation to income. The rule is that to avoid payment of income tax in Germany, you may work for one client in one place or several places within the scope of 50 km for the period of up to 12 months.

To avoid foundation of a fixed establishment in Germany, you should not work for one client in one place for more than 12 months.

Yes, it is possible if the client’s person changes or if you exhange the contractor’s person for another one of your companies.