Handelsgewerbes

Handelsgewerbe is a term used in German commercial law to describe a Gewerbebetrieb (business operation) that has a substantial commercial character and organization. In practice, a Handelsgewerbe is a business that is treated as a Kaufmann (merchant) under the provisions of the German Commercial Code (Handelsgesetzbuch, HGB). This status brings with it specific rights and duties under commercial law, including accounting, bookkeeping, and certain formal requirements.

Legal framework and criteria

Gewerbe is defined in the Gewerbeordnung (GewO) as an activity carried on commercially with the intention of profit and on a permanent basis. A Handelsgewerbe is a Gewerbebetrieb whose size, organization, and nature of activities reflect typical commercial trade, so that it is considered a Kaufmann under HGB. The classification has practical consequences for how the business is treated in contracts, debt collection, and financial reporting. There are different pathways to Kaufmannschaft: an Istkaufmann is a business that, by its operations, already qualifies as a Kaufmann; a Kannkaufmann is a business that can acquire Kaufmannseigenschaft (merchant status) through entry in the commercial register or by meeting certain criteria, while Formkaufmann refers to corporations that are always treated as merchants due to their legal form.

Consequences and examples

Being a Handelsgewerbe typically subjects the business to the rules of the HGB, including requirements for commercial bookkeeping (often double-entry) and the possibility of using a commercial register in dealings with third parties. It also affects liability, contract interpretation, and the organization of the business, influencing relationships with suppliers, customers, and employees. Typical examples include wholesale and retail trading businesses and manufacturing enterprises with a commercial scale and organization.

See also: Gewerbe, Kaufmann, Istkaufmann, Kannkaufmann, Formkaufmann, HGB, GewO, Handelsregister.