Entering the commercial register: When setting up your own company or starting your own business, the subject of entering the commercial register may become topical. An entry in the commercial register can also be mandatory, depending on the type of company. A small company or a smaller company such as a small business , a freelancer or a GbR are not obliged to register, but can also voluntarily have an entry made in the commercial register. Every merchant is also obliged to register his company and the location of his commercial branch with the locally responsible commercial register.
Entry in the commercial register for your own company
An entry in the commercial register is made in the commercial register by the local court. The commercial register is a public directory with information on the trade or company. The commercial register enables external business partners to inspect it and thus ensures more transparency. The business partner receives a certain degree of legal security in trade with the registered company or company. The entry in the commercial register is an electronic entry that must also be adjusted accordingly in the event of changes. In addition, the commercial register also serves to protect one’s own company.
Information about the company / company in the commercial register
According to Healthknowing, the following information can be found in the commercial register entry:
- Legal form of the business
- Headquarters of the company
- Managing director, owner or partner
- Capital contribution
- Appointment and cancellation of authorized agents and authorized signatories
- Bankruptcy proceedings
- Business closure
Advertising effect of the entry in the commercial register
The entry in the commercial register ensures a good public image. Thanks to the automatic publication in the daily newspaper and in the Federal Gazette, the first marketing is taken care of right from the start. It is advisable to be registered in the commercial register before joining a professional association. An entry in the commercial register is an effective measure to convince customers of the seriousness of the company. The entry ensures transparency and reliability because it is not free.
What changes does the entry in the commercial register bring about?
For the trader, the entry in the commercial register primarily brings about legal changes. As a result of the registration, the company or company is no longer subject to the Civil Code, but predominantly to the Commercial Code (HGB). From the GbR (regulated in the BGB) the company becomes an OHG, i.e. an open trading company, the regulations of which can be found in the HGB. The former small business becomes a registered merchant. In addition, further information will have to be sent to the local court in the future.
- Carrying out an inventory
- Double bookkeeping or accounting with annual accounts from a profit of 60,000 euros or sales over 600,000 euros
- Info about the capital employed
- Credit report
- Business traffic regulations
- The number and types of business transactions
- Number of respective employees
- Presentation of the company
- Unique company name
- Correspondingly applicable law and questions about liability
How does the entry in the commercial register work?
In order to have the entry made in the commercial register, entrepreneurs can obtain information in advance from the responsible Chamber of Industry and Commerce and have the entry checked in advance to be on the safe side. This allows open questions and other aspects to be clarified in advance. If the preliminary check is positive, an application will be filled out with the help of a notary. The notary is the one who then forwards the application to the local court accordingly. The district court then checks the entry for content and accuracy. After this has been done, it takes about 14 days to 3 weeks for the entry to be published in the commercial register. The respective legal form of the company decides on the documents to be submitted for the entry in the commercial register. The commercial register itself is divided into two categories:
- Department A for partnerships such as sole proprietorships, general partnerships and limited partnerships (KG)
- Department B for corporations such as GmbH and stock corporations
The IHK is obliged to provide support to the court and also to help with the maintenance of the commercial register. Upon request, the Chamber of Industry and Commerce provides the local court with the opinion on a new entry as an expert opinion on the admissibility of a company.
What does the entry in the commercial register cost?
For the entry in the commercial register, on the one hand the costs for the notary and on the other hand a fee at the respective local court are due. This fee is determined based on the business value of the company. If it is a start-up, the respective equity value is used to determine the fees. A table with the respective fees from the Federal Ministry of Justice is available for this purpose. In the end, it doesn’t matter which notary you go to in order to have an entry made in the commercial register. The fee rates are uniformly regulated nationwide.
What does an extract from the commercial register cost?
Researching a company name in the commercial register is free and the directory can be viewed in electronic form. If further information is to be obtained, fees will be charged for the extract, depending on the scope. Unfortunately, it cannot be said in general what an extract from the commercial register costs. Depending on the provider, the costs vary between 7 and almost 20 euros. Here you can look for a suitable provider on the Internet who can obtain the extract from the commercial register. Google can help here .