THE BEST BUSINESS BANK ACCOUNTS

For small businesses, self-employed and freelancers in Germany, it is advisable to keep two separate bank accounts: one business account for business and one private account for private use. With an extra business bank account, it is easier to track and record business transactions and easily create a proper balance sheet. The business account is used to process the receipt of payments, the sending of invoices, payment of salary or business purchases.

A great advantage of a business bank account is that you can manage your business finances with it and this also means an enormous assistance with the tax declaration. In addition, a part of the income can be set aside for future tax payments. There are now a number of digital banks in Germany that have made the process for opening a new business account online very simple.

If you are a citizen of an EU (European Union) country, you can easily conduct your banking transactions online from home. However, many German business partners and customers prefer a German bank account, because they have a higher sense of security. In addition, with a bank account within Germany, the transfers are usually carried out faster than when they are transferred to another European country.

Finding the right bank for your personal requirements is not that easy, because there are many banks in Germany that charge different fees and offer different benefits. As a freelancer, you may not have as many transactions on your business account, or you may not need all the functions that some banks offer. The right choice of bank is therefore important to keep bank fees as low as possible. In the best case, you should choose a bank that does not charge monthly fees.

As a self-employed or a small business owner in Germany, you must first register your business (Gewerbe) with the local trade office (Gewerbeamt). Then the business must also be registered with the German tax authorities (Finanzamt). After that you get your personal tax-ID (Steuernummer). With this tax-ID you can apply for the opening of a business account at many German banks.

If you are a freelancer, on the other hand, you do not need to register a business, but only register with the German tax authorities (Finanzamt) as a freelancer. Once you have done this, you will also be notified of your tax-ID. As a freelancer, it is not necessary to open a business bank account, but it is still very advantageous for accounting purposes.

An important question is, for example, what legal form the company has. Are you a freelancer, self-employed or do you own a company such as a GmbH (limited liability company) or a UG (entrepreneurial company - limited liability).

Even before you decide on the business account bank, you should know what services you need for your account. For example, how many transactions will be made through this account? Or do you need a bank card for the business account? If you can answer these questions, you know what services you should looking for when choosing a bank.

There are also banks that allow their customers, for example, only 10 free transactions per month. If you need more transactions, it is best to look for a bank that offers more free transactions per month or even unlimited free transactions.

Exactly which documents are required always depends on the respective bank! At most German banks, however, the following documents are usually required for opening a business bank account:

• Valid European identity card or passport
• German tax number (tax ID - Steuernummer)
• Business registration (for self-employed and business people)
• Official registration address in the Federal Republic of Germany
• Possibly bank statements of the previous private bank

• Free account management
• Customer support in English
• The registration process should be kept simple
• Managing the business account online (sending invoices, making payments, monitoring)
• Free Mastercard
• Possible cashback rewards

When choosing a German bank, you should pay attention to the various fees that it may charge the customer. There are a wide variety of bank fees such as a general fee for processing, any fees for incoming or outgoing money, or fees for the debit card.

Many banks no longer charge fees, yet the differences in the costs for account management, card fees or a overdraft credit are often very large. Therefore, you should pay attention to the following fees:

• Account maintenance fee - German: Kontoführungsgebühr
• Debit/Credit card fee - German: Kartengebühr
• Wire transfer/Bank giro transfer fee - German: Überweisungsgebühren
• Overdraft credit interest rate - German: Zinssatz für Dispokredit
• Cash withdrawal fees (from third party banks) - German: Abhebung von Bargeld

The process for opening a German business bank account can of course differ from bank to bank. As a rule, opening a business account online in Germany works as follows:

Step 1: Enter personal data

• First name, last name
• Address, place of residence in Germany
• Email address
• Phone number

Step 2: Entering the company data (legal form)

Required documents for identification of the company (the detailed documents depend on the legal form of the company). For example, the following documents are required to open an account online for a limited liability company:

• Commercial register number
• Commercial register excerpt from the beginning of registration
• Shareholders' agreement and list of shareholders
• Copies of valid identification documents of all persons registered in the Commercial Register (these are usually the shareholders)

Step 3: The registration will confirmed

Step 4: Video-Ident procedure (Identification of the applicant via video chat)

Step 5: Receiving the access data for the new business account

At some banks, this process can be completed within a few minutes, while at others it can take up to 48 hours or longer. As a rule, however, the opening of an online business account at the banks works very quickly.