Opening a Restaurant in Germany

What to consider when opening a restaurant in Germany

• - Choose the concept: this is related to the specific cuisine that will be served but also the niche if the restaurant will promote a unique or less explored concept.
• - Choose the location: the location of the restaurant will be very important for the success of the business and can also be linked to the chosen niche; another pre-formation decision that will impact the restaurant’s image has to do with the name.
• - The business plan: having a good business plan can help entrepreneurs obtain a loan for their business – which may be more than needed in some cases.
• - Obtain the permits and licenses: the new restaurant will need to observe the local sanitary and safety regulations and obtain the special permits and licenses from the relevant authorities.
• - Hire the staff: a good location and concept will need to be supported by a dedicated and professional team and the restaurant will also rely on the notoriety of its head chef.
• - Prepare the menu: the main feature of the restaurant, apart from the location and design, will be the menu and entrepreneurs will need to prepare it with dedication and attention.
• - Advertising: this can be an important step and creative entrepreneurs can start an advertising campaign for their new restaurant in advance.

 

The high number of inhabitants makes Germany the country with the largest food and beverages industry in Europe. The food sector is currently the fourth segment in the economy with a large number of companies operating in the field and with over half a million employees in restaurants or food producing companies. Germany is also a great importer and exporter of foodstuff and beverages. At the moment, Germany offers great potential to foreign investors seeking to open restaurants here, and also to those wanting to start a trading company based on agricultural products.

Investors should know that there are special regulations in place for those who open a company in Germany that activates in the food sector. In most cases, the business will need to obtain a certificate from the Public Health Office and it is submitted upon the registration of the company (conditions apply as per the date on which it was obtained, it must not be more than three months old). We recommend getting in touch with our agents for complete details about this specific certificate. Moreover, further down in this article, our team also lists other special permits that are commonly required when starting a restaurant in Germany.

 

 

 

 

 

The first step for investors who wish to start a restaurant is to open a company in Germany.  The following steps are required in order to register the business:

 

 

Our specialists in company registration in Germany can help you with the preparation of the incorporation documents  and throughout the entire company formation procedure.

 

When opening a restaurant investors will also be required to think about a suitable business form. The steps above describe the formation of a corporation, a legal entity that is separate from its founders and that can enter into agreements in its own name. This can be the limited liability company (GmbH), the limited liability entrepreneurial company (mini GmbH), or the stock corporation. The partnership limited by shares is also included in the corporations' category because it combines a stock corporation (AG) and a limited partnership.

 

One of our agents who specialize in German company formation can provide investors with detailed information about all of these business forms. The type of company usually selected by investors who open a restaurant is the GmbH. This is the German equivalent of the private limited liability company and it allows the founders to limit their liability up to the amount of invested capital. The minimum share capital for this business form is 25,000 euros and it can also include contributions that are made in-kind. Upon incorporation, half of this capital (12,500 euros) must be deposited into a bank account or verified if it is made in-kind. The mini-GmbH is not a separate type of legal entity per se, but a type of GmbH that has a lower minimum capital. It can be a preferred business form because in this case the company can be incorporated with only 1 euro. However, the company is required to retain a quarter of the annual profit until it reaches the initial amount of 25,000 euros for the capital. The establishment costs for the mini variant of the GmbH are also reduced, at approximately 300 euros (because of the lower costs for notarized documents).

 

The set-up process is the one summarized in the seven steps described above, starting with choosing an original business name.

 

Companies in Germany are subject to corporate income tax (that also includes the solidarity surcharge), trade tax, value-added tax, social security contributions as well as others. 

 

Once these steps are finalized, the company must apply for the relevant business licenses covering the operations of a restaurant.

 

 

 

 

When setting up a restaurant in Germany, the owner must take into account the legislation related to:

 

 

Additionally, the owner must make sure the building in which the business will carry out its activities is suitable for this type of activity and hiring specialized personnel is necessary.

Investing in Germany

 

Starting a restaurant in Germany can be a suitable business idea, particularly if the founder/s have the required capital for company formation in Germany as well as the needed amounts for purchasing a property, décor, and equipment as well as marketing. 

 

Entrepreneurs who are not EU citizens will require a residence permit in order to set up the business. If the interested individual is not yet in the country, then he will need to apply for the permit (residence permit for self-employment or a residence permit for investment) with the German Embassy or Consulate in his country of origin. This is a process that can take more than two months in some cases as the German Embassy/Consulate in the country in which the application is made forwards it to Germany for evaluation. This time period should be taken into consideration when establishing the business plan. Investors who cannot be present in the country during the entire time they need to open a company in Germany can reach out to our agents. Through a power of attorney, our specialists will be able to make some of the submissions in your name.

 

The restaurant license in Germany

 

• - the public house,
• - the takeaway food establishment,
• - the bar and the club or discotheque,
• - the food truck.

Documents required to obtain a restaurant license in Germany

 

• - a good standing certificate for the person applying for the license,
• - an extract from the German Trade Register with respect to the company applying for the license,
• - a statement from the Trade Register when the restaurant is operated by a sole trader (it is often the case of food trucks).

 

The restaurant sector in Germany

 

Restaurants in Germany benefit from a growing demand for healthy food, recipes that use fresh and natural products and a reinterpretation of traditional cuisine. Full-service restaurants in Germany record good performances in terms of value growth. The number of restaurants was estimated as follows:

 

 

For information about all the regulations to follow when opening a restaurant in Germany, you can contact our local consultants in company formation.