Obligated to register are:

• Partnerships such as general partnerships (OHG) and limited partnerships (KG),
• Corporations such as limited liability companies (GmbH) and joint-stock companies (AG), and
• any commercial enterprise which, by its nature and extent, requires a business set up in a commercial manner. Whether this is the case can depend, for example, on the annual turnover, the capital, the number of business transactions or the number of employees and is a case-by-case decision. There is no precise definition.

Small traders are exempt from the obligation to register in the commercial register. They can, but do not have to, register in the commercial register. Freelancers are also exempt from the obligation to register.

If your company is entered in the commercial register, you are legally considered a merchant and have the following rights and obligations, among others:

• You may grant procuration, i.e. give employees far-reaching management and representation powers. Because of its special significance, the granting of procuration is entered in the commercial register.
• You can freely agree on a place of jurisdiction.
• You can also issue guarantees, promises of debt or an acknowledgement of debt orally.
• You must observe the bookkeeping and accounting regulations under commercial law.