Procedure to Set Up a Restaurant in Germany

Here, we will be discussing the steps to set up a restaurant in Germany. Additionally, this guide will walk you through the requirements, and legal framework to establish a successful restaurant business there.


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    Embarking on the journey to set up a restaurant business in Germany opens the door to a rich and diverse culinary landscape. Germany, with its vibrant food culture and discerning diners, provides an enticing market for aspiring restaurateurs. This guide will walk you through the essential steps, legal requirements, and procedures to establish a successful restaurant business in this European powerhouse. Join us as we explore the nuances of setting up a restaurant business in Germany, where tradition meets innovation in the world of culinary entrepreneurship.

    Requirements for Setting Up a Restaurant Business in Germany

    Before delving into the legal intricacies, it’s crucial to understand the fundamental requirements for establishing a restaurant in Germany.

    Business Plan:

    Before anything else, craft a detailed business plan. This not only serves as a roadmap for your venture but is also a requisite when seeking financial support or approaching potential partners.

    Location and Premises:

    Pick a prime location for your restaurant. Take into account variables like foot traffic, demographics, and proximity to competitors’ establishments. Make sure that the property complies with all applicable health and safety codes as well as zoning rules.


    Determine your budget and explore financing options. A well-defined financial strategy is essential for the successful opening of your eatery, regardless of funding sources such as personal savings, loans, or investors.

    Legal Framework for Setting Up a Restaurant Business in Germany

    Transparency and compliance are guaranteed by Germany’s clearly established legal system. Understanding the legal aspects is imperative to avoid potential pitfalls.

    Business Registration:

    The first step is registering your business. This involves choosing a legal structure (sole proprietorship, partnership, GmbH, etc.) and registering with the local trade office (Gewerbeamt).

    Food Hygiene Regulations:

    Comply with Germany’s stringent food safety and hygiene standards. Familiarize yourself with the HACCP (Hazard Analysis and Critical Control Points) system, and ensure that your staff follows proper food handling practices.


    Obtaining the required permits is important. If you intend to offer live music, make sure you have a license for food service, alcohol, and music. The qualifications for each kind of license are different and may change based on where you live.

    Employment Laws: 

    When recruiting employees, follow German employment laws. This includes following minimum wage laws, registering workers for social security, and maintaining a secure workplace.

    Procedure for Setting Up a Restaurant Business in Germany:

    Now that you’re familiar with the prerequisites, let’s outline the step-by-step procedure to set up your restaurant business in Germany.

    Registering Your Business:

    Begin by registering your business with the local trade office. This entails turning in the required paperwork, such as your identification, proof of address, and business plan.

    Tax Registration:

    Obtain a tax number by registering with the local tax office (Finanzamt). This is essential for paying income tax, VAT (Value Added Tax), & any taxes relevant to your business.

    Obtaining Licenses:

    Apply for the required licenses from the relevant authorities. This may include the local health department, the responsible trade office, and the police (for an alcohol license). Make sure that every hygienic and safety requirement is fulfilled.

    Establishing Financial Accounts: 

    Create an accounting system and open a bank account for your company. To adhere to German accounting rules, and maintain accurate financial records.


    Make sure your restaurant is adequately covered by liability, property, and workers’ compensation insurance.


    Setting up a restaurant business in Germany is a meticulous process that requires careful planning and adherence to legal requirements. By understanding the essential steps, legal framework, and procedures outlined in this guide, you can navigate the complexities and embark on a successful culinary venture in one of Europe’s gastronomic hubs. 

    You can consult our experts at OnDemand International to set up your business in Germany. Our experts will guide you through the procedure and help you register your business. Contact us today to set up your business in Europe.


    The most common structures are sole proprietorship (Einzelunternehmen), partnership (GbR), or a limited liability company (GmbH). The decision is influenced by variables like taxation, liability, and management preferences.

    Essential licenses include a food service license, health permit, alcohol license (if serving alcoholic beverages), and potentially a music license for live entertainment.

    Yes, employers must adhere to German employment laws, including social security contributions, minimum wage requirements, and occupational safety regulations.