Germany Proposes Sweeping Business Reforms to Cut Red Tape and Boost Digital Compliance
The Federal Ministry of Economy has unveiled a draft amendment to the Trade, Commerce, and Industry Regulation Act (Gewerbeordnung). The proposal aims to simplify procedures for businesses while introducing new exemptions and digital compliance measures. A public consultation on the changes is now underway.
Under the draft, the 'grace period' for transferring business operations will stretch from three to five years. Unused industrial facility permits will also remain valid for longer—rising from five to seven years—with options for further extensions.
The plan integrates state-level building permits and nature conservation approvals into the commercial licensing process. This move seeks to reduce bureaucratic hurdles for businesses. Additionally, photovoltaic systems and electric vehicle charging stations will no longer require licensing, provided they are installed by certified professionals and undergo regular safety checks. Digital submission of compliance documents will be introduced, allowing authorities to request files electronically. The Economy Ministry has also included constitutional provisions to underpin these reforms. However, any constitutional changes will need a two-thirds parliamentary majority to pass. The public consultation began on Monday and will close on February 20. The process is being led by the ministry alongside regulatory bodies, including sectoral agencies and relevant federal departments.
The proposed amendments will now undergo scrutiny during the consultation period. If approved, businesses could face fewer licensing barriers, while digital compliance checks may speed up administrative processes. The final decision will depend on parliamentary support, particularly for the constitutional adjustments.
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