How to Deregister Your Business in Germany: A Step-by-Step Guide
If you no longer carry out your business activities, you must report it to the competent commercial office. This requirement is clearly outlined in Section 14 of the GewO (Trade Regulations). Any change that affects your business, including ceasing operations, must be reported to the relevant authorities.
How to Cancel Your Business Registration
The process of canceling your business registration is relatively simple. Commercial offices provide the necessary forms for deregistration, but many offices also accept an informal deregistration request, either in writing or in person. Typically, a business license, registration confirmation, and an identity card are required for the cancellation process.
Most business offices do not charge a cancellation fee. Additionally, you are not required to notify the tax office separately, as commercial offices automatically inform all relevant authorities.
Should You Completely Deregister or Suspend Your Business?
Before you proceed with deregistering your business, one important consideration is whether you should permanently cancel your business or temporarily suspend it. If there is a possibility that you may resume operations in the future, a suspension of registration may be the best option. This is considered an inactive status, relieving you of all business duties while keeping the option to restart operations open at any time.
There is no specific deadline for this suspension, and it allows the business to remain dormant without making any long-term commitments. Unlike permanent cancellation, the tax office is the point of contact for suspending registration, not the commercial office.
Permanent Deletion vs. Suspension
One important argument against permanent cancellation is that all licenses granted to your business will expire upon deregistration. However, this does not happen with the suspension option, making it a more flexible choice if you plan to resume operations in the future.
Make an Informed Decision
Ultimately, the decision to deregister your business should be made with careful consideration. Whether you choose to completely cancel your registration or simply suspend it, it’s important to weigh the potential for future business activity before making any final decisions.