Kleingewerbetreibender

A Kleingewerbetreibender is an entrepreneur whose business, by nature and scope, does not require a commercially organized business operation. Therefore, they are not subject to the obligation of registration in the commercial register, benefit from simplified bookkeeping, and can usually determine their profits using the income surplus calculation (EÜR). The small business is often operated part-time or as a secondary occupation; typical sectors include kiosks, online shops, crafts, or services. When registering the business, the Kleingewerbetreibender often opts for the small business regulation according to § 19 UStG to benefit from VAT exemption. However, obligations such as income tax declaration, trade tax above the exemption limit, and IHK membership remain. Advantages include low start-up and administrative costs, no double-entry bookkeeping, and free choice of name – the personal name suffices, and a company name is not required. However, those wishing to grow can voluntarily register as a Kannkaufmann in the commercial register to improve reputation, creditworthiness, and company naming. The distinction from an Istkaufmann is primarily based on turnover, number of employees, and business complexity. Thus, the Kleingewerbetreibender is the ideal legal form for founders who want to start self-employment flexibly, cost-effectively, and uncomplicatedly.