Trade Regulation Act (GewO)

Introduction

The Trade, Commerce and Industry Regulation Act (GewO) is a central set of regulations in German commercial law that governs the framework conditions for the exercise of commercial enterprises. It contains regulations on topics such as business registration, business license, commercial register and much more. In this article, we will examine the most important provisions of the Trade Regulation Act, paying particular attention to aspects relevant to IT law and startups.

Fundamentals of the trade regulations

The Trade, Commerce and Industry Regulation Act (Gewerbeordnung) forms the legal basis for the performance of commercial activities in Germany. It regulates, among other things:

• Business registration: Anyone wishing to operate a business in Germany must register it with the relevant authorities.
• Business permit: A special permit is required for certain types of business, such as operating a restaurant or a security company.
• Monitoring and regulatory offences: The Trade Regulation Act also contains provisions on the supervision of commercial enterprises and on penalties for violations of the Trade Regulation Act.

Relevance for IT law

In the area of IT law, the regulations of the Trade, Commerce and Industry Regulation Act (Gewerbeordnung) on business registration and business licenses are of particular importance. IT companies that develop software or offer IT services must register their business.

In addition, the regulations on commercial register entry are also relevant for IT companies. IT companies that are operated in the legal form of a GmbH (limited liability company) or an AG (joint stock company) must be entered in the commercial register.

Relevance for startups

For startups, the following aspects of the trade regulations are particularly relevant:

• Business registration: Startups must register their business with the competent authority. This is an important step to officially establish the company.
• Commercial register entry: If the startup is operated in the legal form of a corporation, registration in the commercial register is also required.
• Industrial property protection: Startups should also familiarize themselves with the provisions of the Industrial Code on industrial property protection, especially if they offer innovative products or services.
• Data protection: Startups, especially those in the IT sector, must comply with the data protection regulations set out in the Trade Regulation Act (Gewerbeordnung) and other laws, such as the General Data Protection Regulation (DSGVO).

Conclusion

The Trade, Commerce and Industry Regulation Act (Gewerbeordnung) is a comprehensive set of regulations that is relevant to all tradespeople in Germany. For IT companies and startups, the provisions on business registration, business licenses, commercial register entry and data protection are of particular importance. It is important for startups and IT companies to know and comply with the relevant provisions of the Trade Regulation Act in order to avoid legal problems and build a solid foundation for their business. Especially in the fast-moving and innovation-driven IT industry, it is essential to know and observe the legal framework.