Obligated to register are:

• Partnerships such as general partnerships (OHG) and limited partnerships (KG),
• corporations such as limited liability companies (GmbH) and stock corporations (AG) and
• any commercial enterprise which, by its nature and scope, requires a commercially organized business operation. Whether this is the case can depend, for example, on the annual turnover, the capital, the number of business transactions or the number of employees and is decided on a case-by-case basis. There is no precise definition.

Small businesses are exempt from the obligation to be entered in the commercial register. They can, but do not have to, be entered in the commercial register. Freelancers are also exempt from the obligation to register.

If your company is entered in the commercial register, you are legally considered a merchant and have the following rights and obligations, among others:

• You may grant power of attorney, i.e. give employees extensive management and representation powers. Due to its special significance, the granting of procuration is entered in the commercial register.
• You can freely agree on a place of jurisdiction.
• You can also issue guarantees, promises of debt or an acknowledgement of debt verbally.
• You must comply with the bookkeeping and accounting regulations under commercial law.

The chambers support the district court in maintaining the commercial register. In certain cases, the district court requests the Chamber to give an expert opinion on an application for entry in the commercial register or an amendment.
In order to avoid subsequent complaints and costly changes as well as to speed up registration, you should coordinate your planned company formation with your chamber in advance.

If you operate a company that does not require a commercial business operation in terms of type and scope (so-called small traders), you are not obliged, but entitled, to be entered in the commercial register. If you make use of this right and are entered in the commercial register, you become a merchant with the registration. For more information, please contact the Chamber of Commerce and Industry in your place of residence.