Starting a GbR in Germany 2026: Guide, Costs & Liability

Starting a GbR in Germany 2026: Guide, Costs & Liability

If two or three of you are starting a business together, the GbR is often the most obvious legal form: fast, cheap and notary-free. No share capital, almost no bureaucracy – with a shared purpose you are practically a Gesellschaft bürgerlichen Rechts straight away.

But the simplicity comes at a price: in a GbR every partner is personally liable with their private assets. Underestimate that and you risk more than you bargained for. So it pays to look clearly at formation, costs and liability.

In this article we show you how to start a GbR in 2026, what it costs, how it is taxed and what changed with the new company register (eGbR).

What is a GbR?

The Gesellschaft bürgerlichen Rechts (GbR) is the simplest form of partnership (§ 705 BGB). It comes into being as soon as at least two people join forces to pursue a common purpose – an agency, a joint practice, a shared café.

Typical features of the GbR:

• No minimum capital – unlike a GmbH (€25,000) or UG (€1)
• No notary required (except when real estate is part of the partnership assets)
• At least two partners – there is no one-person GbR
• Suitable for freelancers as well as traders

If the GbR grows large or runs a fully commercial business operation, it automatically becomes an OHG. Whether you are freelance or commercial is explained in Freiberufler vs. Gewerbetreibender.

How to start a GbR in 4 steps

1. Draft a partnership agreement. Verbal is legally enough but risky. Put in writing: partners, purpose, contributions, profit split, management and what happens on exit.
2. Register a trade (only for commercial activity). Each commercial partner registers with the trade office – see the trade registration guide. Pure freelancer GbRs need no trade registration.
3. Notify the tax office. You receive the tax registration questionnaire and apply for a dedicated tax number for the GbR.
4. Open a business account. A joint account in the GbR's name keeps business and private cleanly separate – the basis for proper bookkeeping.

Costs of forming a GbR

The GbR is the cheapest legal form there is. Realistic 2026 costs:

• Trade registration: approx. €20–60 per partner (depending on municipality)
• Partnership agreement: €0 DIY, or a few hundred euros with a lawyer
• Notary: usually €0 – only needed for real estate
• Share capital: €0

That means a GbR is usually founded for under €100 – a key reason for its popularity among founder teams.

Liability: the GbR's biggest drawback

The decisive point: in a GbR all partners are personally, jointly and severally liable – including with private assets. If one partner takes on debt in the GbR's name, a creditor can pursue the entire private wealth of every partner.

This is exactly where it differs from a corporation. If you want to limit liability, consider a UG or GmbH. For low-risk services, the GbR is often perfectly sufficient.

Taxes in a GbR

The GbR itself pays no income tax. It is fiscally transparent: the profit is calculated and allocated proportionally to the partners, who tax it in their personal income tax return.

Three filings matter:

• Separate and uniform profit assessment: the GbR declares its total profit and the split once.
• VAT: here the GbR itself is the entrepreneur – it files VAT, not the individual partners.
• Trade tax: only for a commercial GbR; the €24,500 allowance applies to the partnership.

Most GbRs determine profit via the income surplus calculation. Clean bookkeeping is the foundation – Norman handles receipt capture and prepares your VAT returns with its AI bookkeeping. For everything else at the start, see becoming self-employed and taxes for the self-employed.

eGbR: the new company register (MoPeG)

Since 1 January 2024, the MoPeG (Act to Modernise Partnership Law) introduced the new company register (Gesellschaftsregister). A GbR registered there is called an eingetragene GbR (eGbR).

Registration is in principle voluntary – but mandatory if the GbR wants to acquire registered rights, such as buying real estate or holding GmbH shares. An eGbR creates more transparency and legal certainty, but also brings registration and follow-up costs. For a classic service GbR without property, registration in 2026 is usually not required.

Conclusion

In 2026 the GbR is the fastest and cheapest legal form for founder teams – ideal for freelancers and small service providers who want to start without share capital or a notary. The price is full personal liability. If you accept the risk and keep clean books from day one, the GbR gives you an uncomplicated foundation. As the business grows or gets riskier, switching to a UG or GmbH is always an option.