So-called "Kleingewerbetreibende" (small traders) are commercially active self-employed persons who do not have to be entered in the commercial register and have not done so voluntarily. There is an obligation to register in the commercial register for those whose company does not require a commercially organized business operation due to its type or scope (for more details, see the page “ Commercial Register “).

Self-employed small businesses must also be registered with the municipal or local authority (Trade Register Notification). The notification must be made using the forms available there. The trade office will check whether a licence is required to carry out the trade in accordance with trade law regulations.

Anyone who fails to submit a trade licence application or fails to do so correctly, completely or on time is committing an administrative offence. Fines or administrative enforcement measures may be imposed.

Unlike the commercial register, the trade registers of the trade offices are not public registers. It is therefore not possible to inspect them yourself. A request for information is only possible by making an enquiry (usually in writing and subject to a fee).

On the regulations for the residence permit of non-EU citizens to take up self-employment in the Federal Republic of Germany, please see page “Beginning an employed business as non-European citizen”

Traders for whom no corporate name has been entered in the Register of Commerce must state their surname with at least one complete first name as well as the address under which they can be summonsed (i.e. the business address and not merely a P.O. Box) on all letterheads. This applies to the entire business dealings, also including telefax correspondence, invoices, orders etc. and also business letters by e-mail. Supplementary additions such as the description of the business activity, logos or similar can be admissible.

The duty to state the correct name primarily serves protection of creditors. If a petty trade company were only to appear under the designation “ABC Real Estate” and moves its headquarters afterwards, it could hardly be found again under this designation by creditors, as there is no registration in a public register under this designation. For this reason, the name of the entrepreneur may also not be established.

They do not designate the trader himself, but, for example, the business premises. For example, shops, restaurants, bars, kiosks, chemists’ shops etc. are customarily provided with their own names (German examples: "Käthes Wollstübchen", "Sonnenapotheke"). They may not be confusing (e.g. “German Shoe Shop” for a small shoe business). Business designations which are individual and as creative as possible additionally characterise the enterprise alongside the trader’s real name. For example, they can be used on the telephone or in advertising, but are not allowed to be used as corporate names.

A petty trader is liable towards his creditors with his entire business and private assets. The risk can be kept in tolerable limits by conclusion of matching insurances.