Wegweiser Tradespeople · Law and business in the skilled trades Deutsch

🔨 Overview of trade law

The most important areas of law for trade businesses at a glance: access to the trades, orders, money, insurance, team.

In brief

As a tradesperson you work under several laws at the same time. That is normal. This page shows which ones they are.

  • Handwerksordnung (HwO, Crafts Code): Who may run a business? Who is a member of the chamber of crafts (Handwerkskammer)?
  • Bürgerliches Gesetzbuch (BGB, Civil Code): contract for work, acceptance, defects, late payment.
  • Tax law: invoices, VAT, trade tax.
  • Social law: pension, health insurance, employers' liability insurance association (Berufsgenossenschaft), notifications for employees.
  • Berufsbildungsgesetz (BBiG, Vocational Training Act): training in the business.

Your rights as an employee (termination, leave, pay) are in the Employees module. This page is about the view of the business and the self-employed.

This page is information. It does not replace legal advice.

Step by step

  1. Assess your situationCheck whether your trade is subject to licensing. That determines whether you need a master craftsman certificate or an exception.
  2. Register your business properlyBusiness registration, trade register, tax office, employers' liability insurance association: these are the first notifications.
  3. Organise contracts and invoicesWritten quotations, acceptance records and invoices in the proper form save you disputes later.
  4. Get insuredSort out liability insurance, pension and health insurance before anything happens.
  5. Get helpThe chamber of crafts, the guild (Innung) and the district craftsmen's association (Kreishandwerkerschaft) often advise members free of charge or cheaply.

Deadlines

53 trades
Anlage A of the Handwerksordnung lists 53 trades subject to licensing.Anlage A to the HwO
1 week
Notification of the start of the business to the accident insurance provider, unless this is done through the business registration.§ 192 Abs. 1 SGB VII
Watch out – common mistakes
  • Running a trade without being entered in the trade register, although it is subject to licensing, is not allowed (§ 1 Abs. 1 HwO).
  • The legal position and figures change every year (minimum wage, contribution limits). Check the date of the source.
  • This platform does not replace advice from the chamber, a tax adviser or a lawyer.
In depth · legal basis, figures and practice – for advisers and professionals

Structure of the Handwerksordnung

Under § 1 Abs. 1 HwO, a trade subject to licensing may be run as a fixed-location business only by someone entered in the trade register. A commercial business is a trade business if it is run in a craft-like manner and covers a trade listed in Anlage A in full or carries out essential activities of that trade (§ 1 Abs. 2 HwO). Activities are not essential if, for example, they can be learned within three months.

Chamber membership

Under § 90 HwO, owners of businesses in trades subject to licensing, in trades not subject to licensing and in craft-like trades in the district are members of the chamber of crafts, as are their journeymen, other employees with vocational training and apprentices.

Other areas of law

Orders follow the law on contracts for work in the BGB (§§ 631 ff.), supplemented for construction work by construction contract law (§§ 650a ff. BGB) and, if agreed, the VOB/B. Invoices are governed by § 14 UStG. For employees, social insurance law (SGB IV), minimum wage law and occupational safety law apply. In the construction industry, additional notification and carry-on-site duties apply (§ 28a Abs. 4 SGB IV, § 2a SchwarzArbG).

Structure of this module

The 15 pages follow the life cycle of a business: access, start-up, orders, money, insurance, team, duties, advice.

Who is responsible
  • Chamber of crafts (Handwerkskammer) for your district
  • Guild (Innung) or district craftsmen's association (Kreishandwerkerschaft)
  • Tax office (Finanzamt)
  • Responsible accident insurance provider (e.g. BG BAU in construction)

Quick questions

Worum geht es bei „Overview of trade law“?
The most important areas of law for trade businesses at a glance: access to the trades, orders, money, insurance, team.
Which deadlines and figures matter?
  • 53 trades: Anlage A of the Handwerksordnung lists 53 trades subject to licensing. (Anlage A to the HwO)
  • 1 week: Notification of the start of the business to the accident insurance provider, unless this is done through the business registration. (§ 192 Abs. 1 SGB VII)
What should I do first?
  • Assess your situation: Check whether your trade is subject to licensing. That determines whether you need a master craftsman certificate or an exception.
  • Register your business properly: Business registration, trade register, tax office, employers' liability insurance association: these are the first notifications.
  • Organise contracts and invoices: Written quotations, acceptance records and invoices in the proper form save you disputes later.
What do I need to watch out for?
  • Running a trade without being entered in the trade register, although it is subject to licensing, is not allowed (§ 1 Abs. 1 HwO).
  • The legal position and figures change every year (minimum wage, contribution limits). Check the date of the source.
  • This platform does not replace advice from the chamber, a tax adviser or a lawyer.
Evidence
  • § 1 HwO, gesetze-im-internet.de, retrieved 20 September 2026
  • § 90 HwO, gesetze-im-internet.de, retrieved 20 September 2026
  • Anlage A to the HwO, gesetze-im-internet.de, retrieved 20 September 2026
  • § 192 SGB VII, gesetze-im-internet.de, retrieved 20 September 2026
As of

September 2026 · Sources and method

A question about your situation that this page does not answer? Write to us or use the contact form – we will tell you which office is responsible and what to bring. Free of charge, without individual legal advice.