Commercial Code (HGB)

Introduction

The German Commercial Code (HGB) is one of the most important legal books in Germany and regulates commercial law. It contains regulations for merchants and companies and is of central importance for business life. In this article, we will examine the structure of the HGB, its main contents, areas of application and significance for business life.

What is the Commercial Code (HGB)?

The Commercial Code is a German legal code that regulates the legal framework for commerce. It was first adopted in 1861 and has undergone numerous amendments since then. Along with the German Civil Code (BGB), the German Commercial Code (HGB) is one of the central codes of German private law.

Structure of the HGB

The HGB is divided into five books:

Book 1: General regulations

The first book contains general rules that apply to all merchants. This includes definitions, the determination of who is considered a merchant, and regulations on company name.

Book 2: Commercial books

The second book deals with the accounting obligations of merchants. It contains regulations on proper accounting, the retention of business records and the preparation of annual financial statements.

Book 3: Trade Stand

The third book regulates the legal relationships of commercial assistants and agents.

Book 4: Commercial transactions

The fourth book contains regulations on various commercial transactions, such as sales contracts, commissions and freight transactions.

Book 5: Trading Companies and Silent Partnership

The fifth book regulates the various forms of commercial companies, such as the general partnership (OHG) and the limited partnership (KG), as well as the dormant partnership.

Main contents of the HGB

Merchant term

The HGB defines who is considered a merchant. It distinguishes between an actual merchant, an optional merchant and a fictitious merchant.

Company law

The HGB contains regulations on the company name, i.e. the choice of name under which a merchant conducts his trade.

Bookkeeping and accounting

Under the German Commercial Code (HGB), merchants are required to keep books and prepare annual financial statements. The German Commercial Code (HGB) contains detailed accounting and reporting requirements.

Sales representatives and sales assistants

The HGB regulates the legal relationships of commercial agents and commercial assistants, including their rights and obligations.

Trading companies

The HGB contains regulations on the various forms of commercial companies, including their formation, liability and management.

Commercial register

The Commercial Register is a public register in which merchants and commercial companies must be registered. The HGB contains provisions on registration and the information to be entered.

Scope of the HGB

The HGB applies to merchants, i.e. persons who operate a commercial business. According to the German Commercial Code (HGB), a commercial enterprise is any business operation, unless the nature and scope of the enterprise do not require a business operation set up in a commercial manner. Commercial companies, such as the OHG and KG, are also subject to the HGB.

Significance of the HGB for business life

The HGB is of central importance for business life. It creates legal certainty and reliability for merchants and companies by providing clear rules for commercial law. In particular, accounting and financial reporting rules are critical to transparency and confidence in the economy.

Conclusion

The Commercial Code is a fundamental code that governs commercial law in Germany. It contains regulations for merchants and trading companies and is crucial for the functioning of the market economy. Merchants and entrepreneurs must familiarize themselves with the regulations of the HGB in order to fulfill their legal obligations and ensure legal certainty in their business operations.