Checking a company from Germany in 12 minutes

Handelsregister.de, the heart of the German system

The primary source of knowledge about German business is the common registration portal of the federal states, Handelsregister.de. This is where you can check any company of the GmbH type (the equivalent of a Polish z o.o.) as well as AG or KG. Many people are discouraged by the archaic look of the site, but that is exactly where you will find the hardest data. You can check for free who the current manager (Geschäftsführer) is and what the company's share capital is. If a company turns over millions and its capital is 1 euro (a UG company, so-called mini-GmbH), a red light should go off in your head.

At Business Precision, we always recommend downloading a document called 'Aktueller Abdruck' (AD). It usually costs 4.50 EUR, but it's the best spent money at the verification stage. From this document, you will learn whether in the last 14 months there has been a sudden change of president to someone from another country, which often heralds trouble or a company takeover by a so-called front man. Remember that German registry courts (Amtsgericht) operate very precisely. If you see the word 'Liquidation' in the 'Status' column, immediately stop the transport of goods, even if the salesperson on the other side claims it's a system error.

It is February 2025, and we see more and more attempts to impersonate old German brands. Scammers buy domains very similar to the original, e.g., by adding a hyphen in the name. In the Handelsregister, you will check the exact address of the registered office. If the address on the proforma invoice differs from the one in court by even one room number, demand an explanation. In foreign trade, there is no room for guesswork. We check the paragraphs, you earn – that is our rule for every contractor audit we perform for clients from Białystok and the surrounding areas.

If the company's capital is 1 euro and the order is for 42 thousand, the risk is on your side.

North Data – quick visualization of connections

If you don't want to wade through dry court documents, use the North Data portal. This is a tool that aggregates data from the German Federal Gazette (Bundesanzeiger) and trade registers. By entering the company name, you will receive a clear chart of financial connections and historical sales results. Do you see a sudden drop in employment from 47 people to 12 in one quarter? This is a signal that the company may have liquidity problems and your invoice may become just another entry on the list of liabilities.

It is worth paying attention to the so-called 'Profit-and-loss transfer agreements.' In Germany, many companies are linked by agreements on the transfer of profits and losses. If your contractor regularly gives all profit to the parent company, they may not have funds in the account when you demand payment for the goods. On North Data, you will see this in the form of simple bars. We speak plainly about the law: if the charts have been going down since 2022, demand 99.5% prepayment or insure the transaction with a known factoring company.

You might be interested to know that the free version of North Data shows data with a delay of about 3-6 weeks. For preliminary selection, this is enough. However, if you are planning a contract for amounts of around 150,000 PLN and more, do not rely on free scraps of information. In October 2024, we saved one of our exporters from shipping to a company that looked like a giant on its website but appeared in North Data as an entity without a single employee reported for social security.

VIES system and VAT-ID verification

This is a step that takes exactly 45 seconds and is ignored by 34% of entrepreneurs. Every company operating in intra-Community trade must have an active EU-VAT number. The VIES system (VAT Information Exchange System) allows you to confirm whether a given number is assigned to a specific name and address. A German VAT number always starts with the letters DE, followed by 9 digits. Lack of an active number is not only a risk of non-payment but primarily problems with the Polish Tax Office when settling the 0% VAT rate.

The principle of due diligence requires you to have a printout from the VIES system with the date the invoice was issued or the goods delivered. If a tax audit knocks on your door in 3 years, such a paper from February 2025 will be your only line of defense. Do not be misled by explanations that 'the system is down' or 'the number is being updated.' In Germany, the process of assigning Ust-IdNr is very efficient for legally operating entities. If the number does not pass verification, treat such a company like a private individual – i.e., add 23% Polish VAT to the price.

Heads-up: Sometimes the VIES system confirms the existence of a number but does not display the company name (it depends on the privacy settings of a given country). In such a case, you must apply for confirmation to the Tax Information Exchange Office in Konin. This takes longer but gives 99.1% certainty. At Business Precision, we help you go through this procedure as part of standard export service, making sure you don't have to pay extra tax out of your own pocket later for the contractor's mistakes.

Insolvenzbekanntmachungen – insolvency portal

German law imposes an obligation to publish information about the initiation of insolvency proceedings on the website insolvenzbekanntmachungen.de. This is the most 'painful' place for any trader. You can search for a company there by name or trade register number. If a company filed for bankruptcy last Tuesday, you will find a corresponding entry there. This is key, because from the moment bankruptcy is announced, the company's management loses the right to dispose of assets, and all your arrangements with the salesperson become worthless.

We often encounter situations where a company is in so-called 'Insolvenz in Eigenverwaltung' (insolvency in self-administration). This means the company is trying to save itself, but you as a supplier are at the very end of the line for payment. Without fluff: if your client's name appears in this register, the chances of recovering money drop to 4-7%. It is worth checking this portal at least once a month if you have permanent recipients from across the Oder to whom you issue invoices with a payment term of 30 or 60 days.

Remember that entries in the insolvency portal disappear after some time (usually 6 months after the procedure is finished). Therefore, historical cleanliness in this register does not guarantee eternal stability. Our law firm in Białystok monitors this data for 18 permanent clients who export agricultural machinery and furniture. Thanks to this, in 2024 they avoided losses for a total amount of 214,000 PLN, withdrawing shipments at the last minute before the recipient's official bankruptcy was announced.

An entry in the insolvency register is a red flag that must not be ignored.

Virtual office vs. Real factory

The final stage of our 12-minute verification is Google Street View. It might sound trivial, but it has saved many a business. Enter the registered office address given in the trade register. If a company declares that it is a manufacturer of steel structures, and at the address you see a tenement house with a hair salon on the ground floor and no sign with the company name, something is wrong. German manufacturing companies are usually proud of their headquarters and take care to mark them.

Also check the 'Impressum' page on the contractor's website. In Germany, it is mandatory and must contain the register entry number (HRB/HRA) and the name of the person responsible for the content. Lack of an Impressum tab in Germany is a straight path to high penalties (Abmahnung). If your partner is a company that ignores such a basic legal obligation, they will probably be just as negligent about your payment terms. Concrete numbers, not promises – that is our working method.

Finally, make a phone call. Don't write another email. Call a landline number and ask to speak with the accounting department (Buchhaltung). Ask for the bank account number for verification. Scammers rarely maintain permanent phone lines with service in German. If no one answers or the phone switches you to an answering machine in an exotic language, let go of this contract. Through 9 years of operation in Białystok, we have seen hundreds of such cases. The security of your money is worth those several minutes spent in front of the monitor screen.