Introduction to gewerbe
In Germany, Gewerbe is a private business owned by one person only. Most of the immigrants from Germany create their own business which is mainly relevant to services, crafts, commerce or industry.
Your business startup requires you to submit an application along with your ID to the office of Business administration (Gewerbeamt). For official registration, you need to pay about 20 euros for data entry.
Contributions for running a Gewerbe
It is important to consider the need for a fixed cost of health insurance which is compulsory for entrepreneurs. You can pay these contributions to some Private health insurer or with the health insurance fund of the state.
Benefits of owning a Gewerbe in Germany
• Too much paperwork is not required when starting and maintaining a business
• Disability and retirement insurance are optional (in most industries)
• A large pension is given to entrepreneurs who choose to contribute to a pension plan
Drawbacks of owning a Gewerbe
In Germany, It is obligatory for every entrepreneur to pay health insurance payments.
The count of Gewerbe towards working years
According to European Union regulation on pension coordination, all member states’ work periods are included in the retirement pension, regardless of the country in which we worked.
This also applies to citizens of Poland who manage Gewerbe. If the business owner pays pension payments (which are mainly voluntary), the years of service while operating the business are counted.
Working on a Gewerbe in Germany – Feasibility to work and operate a Gewerbe at the same time
In Germany, you can work under an employment contract while also running a business.
This also applies when a person working in one EU member does business in another EU country.
Gewerbe and insurance in Poland
According to EU guidelines, the local healthcare system is responsible for treating foreigners who are residing outside their home country, as long as the individual is insured in that nation.
Poles who own a business in Germany are required to have health insurance.
Insurance from Poland, for example, for border crossings, is insufficient, even if it includes provisions for working abroad.
The same is true for the European EHIC given by the National Health Fund – it is insufficient insurance for someone with Gewerbe.
The EHIC is not issued by the National Health Fund to those who have a registered economic activity outside of Poland.
The cost of Gewerbe insurance in Germany
The cost of insurance premiums in Germany is determined by the insurance package selected.
It’s worth noting that Gewerbe owners are required to get health insurance, whereas retirement insurance is optional.
Basic health insurance packages start at several dozen euros each month.
The ultimate cost is determined by factors such as the breadth of insurance and the duration of stay in Germany.
Insurance of Pension on the Gewerbe
Pension and disability insurance are optional for those who work for Gewerbe.
However, it is worthwhile to consider making pension payments, since they will have a beneficial impact on the ultimate amount of the pension.