Legal basis for self-employment

Many people dream of having their own business. But not everyone dares to take the leap into self-employment. An internationally successful company like QN Europe can provide the assistance you need as you are getting started: Products, a well-known brand, training opportunities – we offer all of this to our business partners right from the start. That saves time, money and nerves. Tough negotiations with investors are no longer necessary because our business partners at QN Europe do not need to bring in their own start-up capital. However, there are also a few rules they have to follow when they become self-employed. In what follows you will find out more about what you need to pay attention to:

1. Requirement for foreign nationals

If you are not from the EU, you may have a note in your passport that states you are not allowed to work as a self-employed person. In this event you will first need to approach the immigration office where you can request a change to this entry.

2. Business registration

Business registration is required not only for full-time self-employed persons, but also for those who want to earn something on the side as a self-employed person in addition to their actual employment. The authority that registers your trade passes this information on to the responsible trade chamber. When you register a trade, you are automatically required to become a member of a chamber. The amount of your contribution is determined individually by the responsible chamber. It consists of a basic contribution and an apportionment, which can be calculated on the basis of your business income. Small businesses with an annual income up to 5,200 EUR can be exempted from payment of contributions. Under certain conditions start-ups are also freed from paying contributions for the first two years.

3. Obligations to the tax office

When you register a trade, the responsible authority passes this information to the tax office. You should deal with the topic of taxes at an early stage so your business can get off the ground. The tax office will assign you a separate tax number. As long as you only do business with individuals or small businesses (i.e. “Kleinunternehmer”) within the EU or you are a small business owner, you do not need a VAT identification number. You should definitely submit your first tax return as a self-employed person within the set deadline. Tip: Regularly save part of your income so that you do not get behind on quarterly or monthly tax prepayments.

4. Pension insurance

If as a self-employed person you primarily and over the long term have only one client, you are compulsory required to be insured with statutory pension insurance – with one exception: If you regularly employ a worker in connection with your self-employment, you are not obligated have pension insurance. This applies provided that the employee’s pay regularly exceeds 450 EUR per month. Tip: If you need to build your business, you should choose the contribution that will be calculated based on your income. With increasing profits it can be worthwhile to pay the regular contribution.

You will see: When you start your own business, you have to organise a few things in advance – but with a bit of planning the first steps are not very difficult. Let’s get started! Be your own boss and realise your dreams

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