Definition and Legal Classification of the Business Number
Die Business Number is a unique identification number assigned to natural or legal persons as well as associations without their own legal personality by the competent authorities in the context of administrative procedures in the field of business and trade law. It serves the purpose of clear attribution, effective administration, and legally binding identification of companies or economically active persons within various statutory and administrative procedures.
History and Legal Foundations
The introduction of the business number was primarily driven by the increasing importance of efficient administrative processes as well as requirements for digitization in the public sector. In Germany, the business number is used particularly in the provisions of the Trade Regulation Act (Gewerbeordnung, GewO), the Act for the Promotion of Electronic Administration (E-Government Act – EGovG), and various legal ordinances and administrative regulations.
Trade Regulation Act and Administrative Procedures
According to § 14 GewO, traders are required to notify the competent authority. As part of this process, a specific business number is assigned to each business entity to ensure unique identification throughout the business’s existence. The administrative authorities, particularly the trade offices, are responsible for assigning, maintaining, and reconciling the number.
Data Protection and Purpose Limitation
The legal basis for collecting, using, and storing the business number is primarily provided by relevant data protection regulations, in particular the General Data Protection Regulation (GDPR) and the German Federal Data Protection Act (BDSG). The number is used exclusively for administrative purposes and is subject to strict purpose limitation, meaning use outside the officially defined administrative processes is excluded.
Structure and Composition of the Business Number
The specific design of the business number may vary depending on the authority and federal state. In general, the number consists of digits and, if applicable, letters that encode various identification features such as authority, federal state, type of business, and ongoing process number.
Structure and Systematics
Common format:
- Authority code: Identifier of the issuing authority or federal state
- Consecutive number: Unique sequential numbering for differentiation
- Check digit(s): Verification of the correctness of the number
An example »12345/67890/12« can be broken down as follows:
- 12345: Authority identifier
- 67890: Serial number/company assignment
- 12: Check digit or year of registration
Officially prescribed standards ensure national and, in some cases, Europe-wide uniqueness.
Function and Areas of Application
Identification and Administration in a Trade Law Context
The main purpose of the business number is the clear allocation of information to a business as well as the efficient management of data within the framework of business registration, re-registration, and de-registration. It also serves as a key criterion for linking various administrative registers, such as the business register, commercial register, and the statistical company register.
Use in Reporting and Information Systems
The business number is required for requests and verification of company data by various authorities, institutions, and registers, for example when issuing official certificates, collecting statistics, or when requested by social insurance agencies.
Integration with Other Identification Numbers
In addition to the business number, there are other identification numbers for companies, such as the tax number from the tax office, the VAT identification number (USt-IdNr.), and the company number from the Federal Employment Agency. The business number can be linked or reconciled with these numbers to avoid multiple registrations and increase administrative efficiency.
Statutory Obligations and Legal Consequences
Notification Obligations
Every natural or legal person who operates a business is obligated to register their activity with the competent authority (§ 14 GewO). The business number is assigned during the registration process and is used permanently in subsequent administrative procedures (e.g., re-registration, expansion, closure of the business).
Updating and Deletion
If there are changes in the relevant company data, these must be reported to the competent authority without delay. The authorities then update the stored business number and its assignments. After closure of the business or deletion of the company, the business number is marked as ‘inactive’ in the register and archived, followed by data-protection-compliant destruction after expiration of statutory retention periods.
Sanctions for Violations
Missing or incorrect information regarding the business number can constitute a regulatory offense and lead to fines pursuant to § 146 GewO. Authorities reserve the right to suspend certain administrative actions until the correct business number is provided.
Distinction from Related Numbering Systems
Difference from Tax Number and Commercial Register Number
While the business number primarily serves business law administration, the tax number and commercial register number are independent identifiers for tax or commercial law procedures. Independent assignment prevents mutual interference of different administrative procedures.
Business, Company, and Identification Numbers
The company number issued by the Federal Employment Agency is used to identify a business for social security purposes, while the VAT identification number is required for cross-border flows of goods and services within the European Union. The business number remains restricted to national administrative purposes but is fundamental for official processes in trade and business law.
Relevance and Future Development
The business number is a central instrument of modern administrative procedures and ensures uniform, efficient, and legally secure processing of business law transactions. With the ongoing digitization and harmonization of administrative processes, the relevance of the business number will continue to increase both nationally and at the European level. It is foreseeable that the business number will increasingly be linked with other identity features and used as part of electronic registers and official platforms.
Sources:
- Gewerbeordnung (GewO)
- E-Government Act (EGovG)
- General Data Protection Regulation (GDPR)
- Federal Data Protection Act (BDSG)
- Administrative regulations of state authorities
Frequently Asked Questions
Which statutory provisions regulate the allocation and use of the business number?
The allocation and use of the business number (also known as company number or company identification number) in Germany is primarily based on regulations from the Social Code (in particular SGB IV) and specific laws of individual administrative areas. According to § 18i SGB IV, employers are required to apply for a company number from the company number service of the Federal Employment Agency when taking up employment subject to social security, provided they do not already possess one. The business number primarily serves administrative simplification and unique identification of businesses in the context of reporting procedures, such as under § 28a SGB IV (social security notifications). Further legal bases include, for example, tax law (§ 139 AO, business-related tax numbers) or foreign trade law, if business numbers are necessary for statistical reporting procedures. The use of the business number is conclusively regulated by law, and violations of proper allocation or use may result in fines.
Who is legally required to apply for a business number?
According to § 18i SGB IV, in principle all employers are obliged to apply for a business number (company number) before employing workers subject to social security contributions for the first time. This includes legal entities (such as GmbH, AG), partnerships (such as OHG, KG) as well as natural persons (such as sole proprietors), insofar as they act as employers. Public law institutions and non-profit organizations with employees are also subject to this obligation. Even employers who employ only marginally employed persons (‘mini-jobbers’) are required to apply. Failure to fulfill this obligation properly may be subject to fines pursuant to § 111 SGB IV. Purely freelance or commercial operators without employees subject to social security contributions are exempt from this obligation.
In what legal framework can the business number be revoked or deleted?
Revocation or deletion of a business number is legally possible only in certain clearly defined cases. The basis for this is the regulations on data collection and processing by the Federal Employment Agency under § 281 SGB III and § 18i SGB IV. Once a company has been definitively dissolved and no further employment relationships subject to social security exist, deregistration of the business number can be requested. Subsequently, the Federal Employment Agency can delete or archive the number after the statutory retention periods have expired. Unauthorized revocation of an active business number by the authority is not permitted and can be legally challenged. Deletion is also carried out in accordance with the data protection requirements of the BDSG and GDPR, to which the Federal Employment Agency is also subject.
What are the legal consequences of incorrect use or disclosure of the business number?
The improper or incorrect use of a business number constitutes an administrative offense and is subject to fines under § 111 para. 1 SGB IV. Companies or persons who knowingly or negligently provide an incorrect business number or unlawfully pass it on to other companies act unlawfully. Typical violations include the use of foreign numbers for bogus self-employment, VAT fraud, or to avoid payment of contributions. Disclosure to unauthorized third parties or using deregistered or deleted numbers may also result in criminal or civil law consequences, especially if this causes damage to social security or tax authorities. In such cases, the Federal Employment Agency is required to initiate investigations and sanction reporting violations.
Is data relating to the business number subject to special data protection regulations?
Yes, all data relating to the business number is subject to strict data protection regulations based on the Federal Data Protection Act (BDSG) as well as the General Data Protection Regulation (GDPR). The Federal Employment Agency, as the responsible body, is required, when collecting, processing, and using information relating to the business number, to always observe the principles of data minimization, purpose limitation, and integrity. Data may be processed exclusively for purposes prescribed by law (e.g., social security or tax procedures); disclosure to third parties is permitted according to § 35 SGB I and corresponding GDPR provisions only if there is an explicit legal authorization or consent from the data subject. Affected companies have the right to information, correction, deletion, and blocking of their data, provided this does not conflict with statutory retention requirements.
How long is there a legal retention obligation for documents related to the business number?
According to § 257 HGB and § 147 AO, all companies are required to retain business-relevant documents, including those relating to the allocation and use of the business number, for at least ten years. This applies in particular to payroll records, social security notifications, company number applications, and other documents in connection with reporting obligations. For audits by tax offices or social insurance agencies, traceability and complete documentation are essential to prove compliance with substantive and procedural requirements. After expiry of the retention period and definitive elimination of any potential post-claims, the relevant data and documents may be destroyed in accordance with data protection requirements.
