Open A Car Dealership Requirements

You want to open a car dealership? The dream of your own car dealership can come true: el compadre trucks provides information on capital, requirements, legal forms, costs, choice of location and what else you should consider.

Who can run their own car dealership?

In order to start your own business with a car dealership, you definitely need very good specialist knowledge in the automotive sector. If you do not bring this with you, every new acquisition of a vehicle within your vehicle stock is always associated with a risk. In addition, you should have knowledge that will prepare you for responsibility and activities as a self-employed person. It is recommended that you attend a founder seminar. If you want to run a workshop in addition to your car dealership, you will need a master craftsman’s certificate as a motor mechanic. Alternatively, you can also hire an appropriate employee to lead the workshop.

Open a car dealership: Permits and requirements

The car trade sector is a trade requiring monitoring, i.e. the reliability of the trader must be checked. In general, this is done by extracting an extract from the central trade register and by inspecting the certificate of good conduct. If you also want to offer repairs, you must also observe other regulations; in general, appropriate specialist knowledge must be proven.

Trade licence for your car dealership

In order to exercise a trade, one needs in Germany usually only a trade announcement. For some professions you also need a business license in addition to this advertisement. This permit is required in order to determine special qualifications and personal and spatial suitability. If you need a business licence for your profession, this must be enclosed with the business registration. In order to obtain a trade licence, you should fulfil the following requirements:

Technical prerequisite: A course of study or an initial or continuing training course serves as proof, depending on the qualification required.
Material requirements: These relate, for example, to the required condition of the business premises or proof of economic performance (SCHUFA information).

Personal reliability: A police clearance certificate, an extract from the central trade register and a clearance certificate from the tax office are required here.

Opening a car dealership as a GmbH or UG: choose legal form
Would you like to set up your own business by opening a car dealership or setting up a car dealership? You should consider the choice of the legal form very carefully, especially as you as a car dealer have to reckon with very high pre-financing costs. Under certain circumstances, your savings may not be sufficient to provide the required minimum capital. The UG (haftungsbeschränkt), for example, can be founded with a share capital of just 1 euro, while the GmbH requires 25,000 euros of share capital to be paid in.

Here you can find out more about the possible legal forms:

Everything to the GmbH establishment
Everything about the UG foundation
Of course, there are other legal forms available to you.

Open a car dealership as a franchise

If you want to open a car dealership, you can also use the franchising method. Here you open your own branch on the basis of an existing parent company with a license from the motor vehicle sector, whereby you are supported by the franchisor during and after the establishment. Here you benefit from the knowledge of an already established group and enjoy many other advantages, e.g. it will be easier for you to acquire outside capital, as you found with an already tested concept.

Open a car dealership: Where do I have to register?

Have your car dealership entered in the commercial register.

The Commercial Register is a public register documenting entries on registered merchants in the area of a competent register court. The forms of enterprise GmbH and UG require an entry in the commercial register.

If you choose the legal form GbR or sole proprietorship, no entry in the commercial register is required. If, on the other hand, you are a registered merchant (e.K.), registration is required.

Register your car dealership as a business

Regardless of the legal form you choose, you must register with the trade office responsible for your place of business. If you open your car dealership as a sole proprietorship, a simple business registration is sufficient.

After registering with the trade licensing office, the tax office will automatically register with you for tax purposes. As soon as your documents have been inspected and checked by the tax office, you will receive your tax number and may issue invoices.

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