Starting a Business in Berlin

12 13 Starting a Business in Berlin A Beginner’s Guide involved in transitioning to self-employment. The contributions you make towards your private health insurance scheme are based on the insurance package you are looking for, which can be tailored entirely to suit your needs. All you have to do is speak to a provider directly for more details. The basic insurance cover provided by statutory health insurance companies includes the following services: Outpatient treatments Dental care Medication, remedies and resources Inpatient stays and treatment Necessary medical rehabilitation Pregnancy and childbirth services By the way: By taking out health insurance, you are auto- matically insured for long-term care. Tax ID number A tax ID number is something you need to be able to communi- cate with the tax office. Every citizen has their own tax ID num- ber, and every company has its own tax number that is assigned once the business has been registered. If you take on emplo- yees, you will need their tax ID numbers to have their taxes paid to the tax office. If you don’t have a personal tax ID number, contact the tax office in your local area to request one. The appropriate form is available for download from the tax office website. Speak to the tax office to set up a personal submission appointment. You will need to provide your passport/ID card, birth certificate, and proof of your income tax class as well as a marriage certificate or children’s birth certificates, if applicable. Bank account A German bank account is essential not only for paying rent out of, but also for paying salaries and other payments into. You are free to choose whichever bank you like, and many of these have their head offices in Berlin. Depending on your choice, you may also need to provide your wage slips and work permit in addi- tion to your passport and registration certificate – just speak to them directly about what it is they need from you. Online and direct banks are also particularly commonplace in Germany, offering virtually all the same services as local branches with the obvious exception of the ability to visit in person. Solidarity system In Germany we have a tradition of social market economy. This means everybody contributes a little bit to create something larger for the community. This principle can be found in areas such as broadcasting, healthcare and long-term care insuran- ce (which usually go hand in hand), and pension insurance schemes. Germany’s statutory health insurance, for example, is a collective body in which those in a strong position support those who are worse off. It is this principle, in fact, that fun- damentally sets the statutory health insurance scheme apart from private insurance options. Health insurance Every resident of Berlin must have health insurance. The avai- lable options are either statutory or private insurance, the lat- ter of which must be provided by employers to their employees with a fixed contract of employment. If you choose to work on a self-employed basis, you can either register voluntarily with a health insurance scheme (either private or statutory) or else check with your existing health insurance about the changes CHAPTER 1