As soon as the activity assumes a certain commercial scope, registration as an e.K. is mandatory.

As a rule of thumb, a trading company with an annual turnover of over 250,000 euros must be registered. For companies in the service sector, a threshold value of approx. 150,000 euros applies.

Otherwise, as a sole trader you do not necessarily need to be entered in the commercial register.

Some clients prefer the e.K., as an entry in the commercial register appears more serious and professional, which may have advantages over the contractual partner.