How to open a business bank account in Germany
Written by Enyu Liu
Overall introduction
World-famous for its Brandenburg Gates, beer culture, and bratwurst, Germany has long been regarded as an attractive destination to live and work. Not only does the country boast a high quality of life and a large and diverse economic sector, but it also attracts many with its blend of traditional and alternative lifestyles.
As a country synonymous with banking, it should come as little surprise that the German banking sector is large and competitive, offering customers many choices in managing their financial lives.
Broadly speaking, banking services in Germany fall into three major categories. The first is the big-name private and public sector banks, which typically charge the highest fees and have the most account registration requirements while offering the biggest range of services. Next are the direct banks, which are often (but not always) affiliated with one of the big German banks. These banks offer fully-fledged banking services without any physical branches, and their costs and barriers to entry tend to be lower as a result. Finally, non-bank fintechs offer easy-to-access, flexible checking and spending services for very low costs.
Option 1 — Big German Banks
The first choice to open a bank account in Germany is to use a traditional bank, specifically one of the four largest German private sector banks: Deutsche Bank, Commerzbank, HypoVereinsbank, or Postbank. Together, these banks make up the Cash Group, which means they mutually waive withdrawal fees for customers across more than seven thousand ATMs across Germany.
Big German banks are well-suited for the following types of customers:
- New arrivals who already have proof of residence or plan to get one soon;
- Those looking for fully-fledged financial services (e.g. overdraft, investments, credit card, etc.) and don’t mind paying more in fees for them;
- For new arrivals who don’t speak German, we recommend Deutsche Bank, as most of its everyday services are available in English.
Option 2 — German Direct Banks
Direct banks (or Direktbanken in German) are fully-fledged banks offering all or most of the usual banking services. The main difference is that they don’t operate out of branches, and banking services are online instead.
There are two broad categories of direct banks in Germany: fintechs (local and foreign) and bank subsidiaries. Fintechs include N26, bunq, and Monese and often offer a slightly narrower range of financial services while being cheaper. Subsidiaries, on the other hand — while still offering free checking accounts — tend to offer a wider range of services while being slightly more costly for some services. These banks include DKB, Comdirect, and ING-DiBa.
Due to their flexibility and lower costs, direct banks are best for the following customers:
- Those who only require the standard range of banking services (e.g. current account, card, etc.);
- Those who’re looking to save money;
- For those without proof of residence in Germany, we recommend banks like N26, bunq, or Monese, which don’t require it for registration.
Types of German Business Bank Accounts
When people talk about opening a business account in Germany, they’re generally referring to one (or both) of the following types of accounts:
- Firmenkonto (Business Account): Synonymous with standard business checking accounts, these accounts are used to process cashless payments, manage business transactions, and handle day-to-day financial operations for companies.
- Geschäftssparkonto (Business Savings Account): A savings account designed for businesses, allowing funds to be deposited while restricting withdrawals. These accounts may accrue interest depending on the bank’s terms and market conditions.
In addition to these, there are also more specialized types of accounts offered by German banks for businesses, although they’re less commonly needed for everyday operations:
- Festgeldkonto (Fixed Deposit Account): Also known as a fixed-term investment account, a Festgeldkonto for businesses offers potentially higher interest rates than other account types. However, funds are locked in and cannot be withdrawn until the agreed term ends, making it suitable for businesses with surplus cash reserves.
- Tagesgeldkonto (Overnight Money Account): Similar to money market accounts, this account allows businesses to earn interest on surplus funds without a long-term commitment. Interest rates vary based on the market, and funds can be accessed relatively quickly.
As with personal accounts, opening a German business account often comes with associated bank cards — typically a debit card, credit card, or both.
- A debit card in Germany is known as a Girocard and can be used for cashless payments and ATM withdrawals.
- A credit card (Kreditkarte) for business accounts enables online payments and often comes with a credit limit based on the company’s financial standing.
Most business bank cards include a unique 16-digit card number, facilitating smooth transactions both online and offline.
Documents You’ll Need to Open a German Business Bank Account
- The documentation required to open a business account in Germany varies based on the type of business entity and the applicant’s status:
Sole Proprietors (Einzelunternehmer):
- Valid ID: Passport or German national ID card.
- Proof of address: Meldebescheinigung (registration of residence in Germany).
- Business registration certificate: Gewerbeanmeldung or equivalent document proving business activity.
- Tax Identification Number (Steuernummer): Issued by the German tax office.
Partnerships (Personengesellschaften):
- Valid IDs: Passports or national ID cards of all partners.
- Partnership agreement: Document outlining the partnership’s structure and responsibilities.
- Business registration certificate: Gewerbeanmeldung.
- Tax Identification Number (Steuernummer): Issued to the partnership.
Corporations (Kapitalgesellschaften):
- Valid IDs: Passports or national ID cards of all directors or authorized signatories.
- Certificate of incorporation: Handelsregisterauszug (extract from the commercial register).
- Articles of association (Gesellschaftsvertrag): Founding document specifying the company’s purpose and governance.
- Business registration certificate: Gewerbeanmeldung.
- Tax Identification Number (Steuernummer): Issued by the tax office.
Foreign Entrepreneurs or Businesses:
- Valid passport: For the applicant or authorized signatory.
- Residence permit: If applicable.
- Proof of address in Germany: Meldebescheinigung or proof of a registered German office address.
- Certificate of incorporation (for foreign entities): Translated and certified copy, where applicable.
- Business registration certificate: Gewerbeanmeldung, if setting up a branch in Germany.
Additional Notes:
- Some banks may require a business plan for new businesses to evaluate their legitimacy and potential.
- Online-only banks or direct banks may have simplified requirements for non-residents or international entrepreneurs but often require proof of European Economic Area (EEA) residency.
- Non-residents may face challenges opening traditional accounts without a permanent German address or registration but can explore specialized international business accounts.
· There are differences in requirements and restrictions for German citizens, foreign students, and tourists when it comes to opening a business account in Germany. Some groups may face challenges or restrictions based on their legal status and the nature of their presence in the country.
German Citizens
- Eligibility: German citizens are fully qualified to open a business account, provided they meet the standard requirements for their business type (e.g., valid ID, business registration, tax identification).
- Restrictions: None specific to their citizenship. They must comply with all standard German business regulations.
Foreign Students
- Eligibility: Foreign students can open a business account if they meet the legal requirements for running a business in Germany.
- Restrictions:
- Limited work permissions: Student visas often have restrictions on the number of hours students can work, which may extend to starting a business. Students should confirm with the immigration office (Ausländerbehörde) whether their visa permits entrepreneurial activity.
- Proof of legitimacy: Students need to provide evidence of business registration and purpose, which can be challenging without a clear business structure or plan.
- Residence status: A valid residence permit (Aufenthaltstitel) that explicitly allows self-employment or entrepreneurial activities is required.
Tourists
- Eligibility: Tourists are not qualified to open a business account or register a business in Germany.
- Reasons:
- No permanent address: Business accounts require a registered German address (Meldebescheinigung), which tourists lack.
- Short-term visa: Tourist visas do not allow work or entrepreneurial activities in Germany.
- No tax registration: Opening a business requires a Steuernummer (tax identification number), which tourists cannot obtain without a registered residence and legal work/residency status.
- Banking restrictions: Most banks will not process business account applications for individuals without proof of long-term residency.
Group
Eligibility
Key Restrictions
German Citizens
Fully eligible
Must meet standard business and banking requirements.
Foreign Students
Potentially eligible with limitations
Visa must allow business activities; must have proof of address and business registration.
Tourists
Not eligible
Lack of permanent address, tax registration, and a visa allowing business activity.
There is two ways to open a business bank account in Germany: offline vs online
Offline Business Account Opening
Visit or Schedule an Appointment with the Bank:
- It’s often necessary to make an appointment in advance, particularly for opening business accounts in branches located in larger cities.
Submit Business and Identification Documents:
- Provide valid identification, such as a passport or German ID card, proof of residence (e.g., registration certificate or rental contract), and business-related documents like the Gewerbeanmeldung (business registration certificate) or Handelsregisterauszug (commercial register extract).
Interview and Complete Application Forms:
- Fill out application forms with the assistance of bank staff, who can help explain specific requirements and services available for businesses.
In-Person Identity and Business Verification:
- The bank will verify your identity and the legitimacy of your business documents during the appointment.
Online Business Account Opening
Choose a Bank and Business Account Type:
- Select a bank and account type through their website or mobile app, ensuring it meets your business needs (e.g., for sole proprietorships, partnerships, or corporations).
Submit Online Application:
- Complete the application form online and upload the required business and identification documents.
Remote Identity and Business Verification:
- This is typically conducted via a video identification service (video call) or by uploading a scan of your ID and business documents through the bank’s secure portal.
Receive Account Details:
- Once the application is approved, you will receive your account details, bank card (if applicable), and login credentials via email or mail.
Comparison: Offline vs. Online
Aspect
Offline Account Opening
Online Account Opening
Convenience
Requires visiting the branch and scheduling an appointment.
Can be completed from anywhere with internet access.
Support
Offers direct assistance from bank staff during the process.
May have limited customer support, though online guidance is usually available.
Time Required
Typically takes longer due to in-person verification and document reviews.
Faster if all required documents are readily available.
Accessibility
Suitable for those less comfortable with digital processes.
Ideal for tech-savvy users or those familiar with online banking systems.
Recommendations:
- Offline Opening: Ideal for those who require personalized assistance or have complex business account needs.
- Online Opening: Preferred for convenience, especially for straightforward business structures and those comfortable with digital tools.
Both methods ultimately require accurate documentation and compliance with the bank’s policies for business account approval.
As a convenience and safety concern, I choose Deutsche Bank to open a bank account.
Deutsche Bank is a large international bank with 27 million customers around the globe, Deutsche Bank offers the following three types of bank account services to customers in Germany:
1. Business AktivKonto
- A standard business account including a Girocard debit card and access to online and mobile banking.
- Monthly Fee: €9.90
- Ideal for small businesses requiring everyday banking services with flexibility.
2. Business Premium Konto
- A premium account with additional features like a dedicated credit card, insurance benefits, and enhanced account management tools.
- Monthly Fee: €18.90
- Designed for medium to large businesses needing advanced banking services and additional perks.
3. Start-Up Konto
- A dedicated account for start-ups and new entrepreneurs, offering discounted fees and services tailored to new businesses.
- Monthly Fee: €5.90 for the first year (special offers may vary).
- Geared toward start-ups looking for cost-effective solutions to support their growth.
Steps:
Choose bank account type
Fill in basic information, including personal information, branch number etc.
Sign legal document
Convenience of Mobile Banking
In Germany, mobile banking is widely used, with an increasing number of people opting to conduct their daily banking transactions, such as transfers, bill payments, and account management, through mobile banking apps. Taking Deutsche Bank as an example, their mobile banking application offers a variety of convenient features that allow customers to manage their accounts easily.
User-Friendly Interface
- The Deutsche Bank mobile banking app is intuitive and designed to make it easy for business users to navigate and access essential services quickly, even for complex tasks like multi-account management.
2. Account Management
- Business account holders can view account balances, recent transactions, and important updates from Deutsche Bank at any time.
- Features for managing multiple accounts and tracking business-related expenses make account management seamless for entrepreneurs and larger businesses alike.
3. Transfers and Payments
- The app facilitates quick domestic and international transfers, with the ability to schedule recurring payments for payroll or supplier invoices.
- Businesses can also process bill payments efficiently, using QR code scanning to save time.
4. Security
- The app incorporates robust security measures, such as biometric authentication (fingerprint or face recognition), secure transaction codes, and encryption, ensuring that sensitive business financial data is protected.
- Additional safeguards like two-factor authentication (2FA) enhance the app’s reliability for business users.
5. Real-Time Notifications
- Businesses can set up real-time notifications to monitor account activity, including incoming and outgoing payments, helping to maintain transparency and detect unauthorized transactions immediately.
6. Additional Business Services
- The app also includes features tailored for business account holders, such as:
- Cash Flow Analysis: Tools to monitor and analyze income and expenses.
- Investment Management: Options to manage business investments and savings accounts.
- Support Services: Direct access to customer service for queries or troubleshooting.
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Why Mobile Banking is Essential for Businesses
Mobile banking offers businesses unparalleled convenience and efficiency, allowing entrepreneurs and financial teams to stay on top of their finances anytime, anywhere. Deutsche Bank’s mobile app ensures security, user-friendliness, and a suite of features that meet the demands of modern businesses, making it an indispensable tool for managing business accounts.
Considerations for Opening a Business Bank Account in Germany
When opening a business account in Germany, there are specific factors to consider, particularly regarding requirements and processes:
Number of Documents Required
To open a business account in Germany, you typically need the following documents:
Valid identification (passport or national ID) for all authorized signatories.
- Proof of business registration (Gewerbeanmeldung or Handelsregisterauszug for companies).
- Tax identification number (Steuernummer) issued by the German tax office.
- Proof of address for the business and/or signatories.
- Business plan or purpose of the account (in some cases).
2. Would Every Entrepreneur Have All of Them?
Not every entrepreneur or business owner may have all the required documents, especially for new businesses or start-ups:
- Proof of Business Registration: Sole proprietors or freelancers may face challenges registering their businesses depending on the nature of their work.
- Proof of Address: Entrepreneurs operating without a fixed office address may need to provide proof of their home address.
- Tax Identification Number: This might take time to obtain for newly registered businesses.
3. Days Until Debit Card is Activated and Transactions Can Begin
- Debit Card Activation: Debit cards for business accounts are typically issued within 7 to 14 days after the account is approved.
- Deposits/Payments: Deposits can usually be made immediately after the account is opened. Payments and other transactions can be made once the account is fully activated and debit cards are functional.
4. Costs to Open a Business Account Plus Annual Fees
- Account Opening Fees: Some business accounts, especially start-up-friendly options, have no initial fees, while others may charge a nominal setup fee.
- Annual Fees: Fees vary based on the type of account. Standard business accounts may cost between €100 and €200 annually, while premium accounts with additional services could cost more.
5. Are Foreign Entrepreneurs Allowed to Open Business Accounts?
- Yes, foreign entrepreneurs can open business accounts in Germany. They must provide valid identification, proof of business registration, and sometimes a residence permit. Online-only banks may offer streamlined processes for foreign entrepreneurs.
6. Are Tourists Allowed to Open Business Accounts?
- Generally, no. Tourists face challenges in opening business accounts due to:
- Lack of a permanent address in Germany.
- Absence of business registration and tax documents.
- Short-term stay, which does not meet the banking regulations for business account holders.
Opening a business bank account in Germany requires careful preparation and compliance with the bank’s requirements. Mobile banking further enhances convenience for businesses, enabling smooth and secure financial management once the account is set up. Entrepreneurs, especially foreign ones, should ensure they meet all legal and documentation requirements to facilitate the process.
Resources:
https://www.deutsche-bank.de/ub.html
https://www.deutsche-bank.de/ub/unsere-loesungen/digitalisierung/online-banking-business.html
https://www.deutsche-bank.de/opra4x/public/pfb/request-online-banking-access/#/page-3-0
https://www.deutsche-bank.de/ub/unsere-loesungen/zahlungsverkehr/electronic-banking.html
This story was written by a graduate student at NYU. Read stories about other 50 countries here