Starting a Business in Berlin

38 39 Starting a Business in Berlin A Beginner’s Guide nationally or internationally, you should instruct a trademark lawyer or similar specialist to conduct the necessary rese- arch on your behalf. WHAT TAXES DO I HAVE TO PAY? Don’t be alarmed; you only need to have at least a basic un- derstanding of just four or five types of tax. This requirement even applies if you’ve had the help of a tax advisor from day one, as without a basic knowledge of the tax system, it will be difficult for you to evaluate your performance and organise your business processes. Taxes you need to know about VAT and/or input tax Trade tax Income tax Corporation tax Wages tax VAT VAT (turnover tax) is payable in the case of nearly every purchase or sale of products or services. The only exceptions relate to the typical turnovers of specific professional groups (such as doctors, physiotherapists and insurance brokers) and small business operators, who are exempt. As a busi- nessman, you must charge your customers VAT and submit a preliminary VAT return to the tax office. When you make purchases for your company, the VAT you have paid becomes what’s known as input tax. This input tax can then be set off against the VAT you have collected.  gtai.de/GTAI/Navigation/ en/welcome.html Keyword: „taxes“ Personal names Of course, the company designation of a business may be formed from the surname of the owner or the names of the partners, such as ‘Dahlke & Dietz OHG’. In these circumstan- ces, first names can – but do not have to – be used. Imaginative names These can be formed from pronounceable words such as ‘Rollriesen Spedition e.K.’ (meaning Rolling Giants Haulage e.K.) or combinations of letters and/or numbers (e.g. ‘BHM24 GmbH’). Descriptive names In this case, the area of activity or sector of the business is indicated using a generic term, such as ‘Handelsgesellschaft mbH’ (Trading Company mbH). Such a name would not be distinctive enough, however, and would need a prefix to indi- vidualise it, using either a combination of letters or numbers, such as ‘4U Handelsgesellschaft mbH’, or a made-up word like ‘Halligalli Handelsgesellschaft mbH’. These means it is possible to form combinations of objective, imaginative and personal names. An important reminder In addition to abiding by the provisions of the Commercial Code, it is important to remember the protection extended by German competition and trademark legislation. To avoid the possibility of confusion with another company name, you should conduct your own extensive research (using Internet search engines) early on, before your company is entered in the Commercial Register by the notary. If you plan to operate CHAPTER 3