Three things come first after the notary appointment: open the business account and pay in the share capital, submit the tax registration questionnaire to the tax office, and set up bookkeeping before the first documents accumulate. Following that order avoids most rework.
Incorporation is the starting gun, not the finish line. What happens in the first weeks — or doesn't happen — sets the foundation for how structured, compliant, and efficient the company is from day one.
Many of the topics in this guide sound bureaucratic. They are. But dealing with them early and correctly means significantly less effort later — and significantly fewer unpleasant surprises.
The business bank account is the first operational decision after incorporation. The payment confirmation for the share capital must be retained — it forms part of the commercial register registration process and is required as evidence before the tax authority.
A quick check with your tax advisor before opening the account is worthwhile. Some neo-banks offer attractive pricing but integrate poorly with standard accounting systems. What looks like a minor detail today becomes a monthly friction point — or the reason for switching banks later.
Missed deadlines generate surcharges automatically — no reminder is sent. Familiarise yourself with the key deadlines early in the process:
- VAT advance return (USt-Voranmeldung): Due on the 10th of the following month (or quarter). A permanent deadline extension (Dauerfristverlängerung) — applied for separately — pushes this by one month. Decide early whether this makes sense.
- Payroll tax return (Lohnsteueranmeldung): If you have employees — monthly or quarterly depending on payroll tax volume, also due on the 10th.
- Corporate and trade tax return: For the first full financial year, generally by 31 July of the following year — with a tax advisor the deadline extends considerably.
- Annual accounts: For small GmbHs, the accounts must be prepared within six months of the financial year end (§264 HGB). The filing obligation — depositing or publishing with the company register (Unternehmensregister) — must be fulfilled within twelve months of the financial year end (§325 HGB).
After incorporation, the tax authority (Finanzamt) sends a questionnaire for tax registration. The answers set key parameters: VAT advance filing frequency, financial year, VAT treatment. Fill this out together with a tax advisor — incorrect entries do not correct themselves.
Once the commercial register number is in place, it must appear on all business correspondence, email signatures, and the website's legal notice. The VAT identification number (USt-ID) must be applied for separately from the Federal Central Tax Office — it does not come automatically with the tax number.
The tax number takes between 3 and 12 weeks to be issued depending on the local tax office. The VAT ID then arrives 2 to 3 weeks after that.
This has direct practical consequences: outgoing invoices must show a tax number or VAT ID — neither may be available in the early weeks. Issuing an invoice without either makes a poor first impression on clients. Follow up proactively with the tax office and inform clients in advance if necessary.
Before issuing the first invoice: what are the VAT implications of your service? Are there exemptions? How is the service treated for corporate income tax purposes? Are any accrual adjustments required? These questions are especially important for mixed services, digital products, and cross-border customers — and they are far easier to address early than to correct retroactively.
Doing your own bookkeeping saves money — but only if done correctly. With modern tools like Lexware Office or Sevdesk, reasonably structured bookkeeping is achievable even without deep accounting knowledge. Both offer promotional pricing for founders from time to time — check current conditions when making the decision.
Before setting up the tool: check with your tax advisor whether they know it and whether a clean data export exists. A flawed or incomplete dataset handed over to your tax advisor at year end costs more to correct than outsourcing the bookkeeping from the start would have.
A dedicated email address for incoming invoices is not optional — it is a basic process. All incoming invoices arrive in one place, not in the purchaser's personal inbox or the founder's spam folder.
Generic addresses such as buchhaltung@, rechnung@, invoice@, or accounting@ are prime targets for fraudulent invoices. In the early stage with low document volume, a fake invoice will be noticed. As volume grows, it can slip through — and get paid by mistake.
Choose a more distinctive address that includes a company-specific element. This significantly reduces the risk.
Every invoice and receipt lands centrally — in the cloud, in the accounting tool, or as a scanned copy. Getting this right from the start means no document hunt at year end and no chaos. Agility doesn't mean disorder — simple routines established early are worth more than elaborate systems introduced later.
The filing frequency — monthly or quarterly — is set by the tax authority based on expected VAT liability. It is not automatically monthly. Those who complete the tax registration questionnaire carefully will know early on which rhythm applies. Deadlines must be met — late filing surcharges are applied automatically.
If you plan to hire employees, several things need to be arranged in parallel — and before the first working day. First: who handles payroll? Tax advisor, external payroll service, or in-house?
What is required in every case:
- Employer registration number from the Federal Employment Agency (Bundesagentur für Arbeit)
- Registration with the statutory accident insurance association (Berufsgenossenschaft) — frequently overlooked, but mandatory
- Registration with the relevant social insurance collection agency (Einzugsstelle)
- Employment contracts signed before the first working day
Every outgoing invoice must contain the mandatory particulars under Section 14(4) of the German VAT Act (UStG) — completely and correctly. Defective invoices can prevent the recipient from claiming input VAT, creating unnecessary friction in the client relationship.
Full name and address of the supplier
Full name and address of the recipient
Tax number or VAT identification number of the supplier
Date of issue
Sequential, unique invoice number
Quantity and commercial description of goods supplied, or type and scope of services rendered
Date of supply or service (even if identical to the invoice date)
Net amount broken down by VAT rate and any exemptions
Any pre-agreed reductions not already reflected in the net amount (e.g. discounts, early payment terms)
Applicable VAT rate (19% or 7%) and the VAT amount — or, where exempt, a reference to the applicable exemption
Issue invoices promptly and communicate payment terms clearly. Every payment received on time improves the company's liquidity position.
Depending on the business model, public liability insurance is either advisable or contractually required by clients. This should be reviewed early — not after a claim arises.
Important decisions at shareholder level should be documented in writing from the outset. This provides clarity, protects against later disagreements, and is a legal requirement once more than one shareholder is involved. Starting early means nothing needs to be reconstructed later.
No private expenses through the GmbH, no business expenses through the personal account. Mixing the two creates bookkeeping problems, tax risks, and unnecessary effort during every audit. Getting this right from the start saves a great deal of explanation later.
Structure from day one — not eventually
The first 100 days decide less about growth than about how much cleanup follows. Setting up document workflows, account access and responsibilities early saves time and fees later. Reconstructing records after the fact is the most expensive route to a first annual account.
Many of these points sound like effort. In total, they amount to a few hours well spent in the first weeks. What is set up correctly early runs as routine — what is done incorrectly or deferred tends to return. Usually at the worst possible moment.
Startups thrive on agility — but agility doesn't mean operating without structure. In the early phase, when everything is happening simultaneously, simple processes provide stability and free up capacity for what actually matters: the product and the customers.
This guide provides general, non-binding initial information and does not constitute tax or legal advice. The presentation is deliberately simplified and does not cover every individual case. Individual review is required before any specific decision. Details in the full disclaimer.