Business
Germany — Business: Accounting
Under the German Commercial Code (HGB), merchants must keep books under §§ 238–241. Sole traders (Einzelkaufleute) are exempt from the bookkeeping and inventory duties if, on the closing dates of two consecutive financial years, they stay at or below both €800,000 in sales and €80,000 in annual profit; for a newly founded business the test applies at the first closing date after founding (§ 241a HGB). The higher limits apply from financial years beginning after 31 December 2015, replacing €500,000 and €50,000. Retention periods for accounting documents are in § 257 HGB; as the current text should be checked directly, confirm which periods apply (the 2026 official handbook shows ten years for books and annual accounts, eight years for booking vouchers and six years for other business letters). Rules for companies such as the GmbH are in the HGB and the Limited Liability Companies Act.
Key facts
- Sole traders are exempt from the HGB bookkeeping duties if they stay within both €800,000 sales and €80,000 annual profit on the closing dates of two consecutive financial years (§ 241a HGB).
- For a newly founded business, the test applies at the first closing date after founding.
- Limits of €800,000 and €80,000 apply from financial years beginning after 31 December 2015; they were €500,000 and €50,000 before.
- Retention periods are set in § 257 HGB: the 2026 official handbook shows ten years, eight years for booking vouchers and six years for other documents; check the current text.
Common mistakes
- Assuming a GmbH or other company can use the sole-trader exemption — § 241a applies to Einzelkaufleute.