Germany runs one of the largest and most diverse business economies in Europe. From tiny sole proprietorships to global giants like Volkswagen and Siemens, the country’s corporate landscape spans nearly every industry and every size of firm.
This post breaks down exactly how many companies operate in Germany today, how that number has grown over time, and how it stacks up against other major economies. You’ll find data on business size, industry spread, legal structure, startup activity and more, all pulled straight from official sources like Destatis and IfM Bonn. Let’s dive in.
Author
Germany runs one of the largest and most diverse business economies in Europe. From tiny sole proprietorships to global giants like Volkswagen and Siemens, the country’s corporate landscape spans nearly every industry and every size of firm.
This post breaks down exactly how many companies operate in Germany today, how that number has grown over time, and how it stacks up against other major economies. You’ll find data on business size, industry spread, legal structure, startup activity and more, all pulled straight from official sources like Destatis and IfM Bonn. Let’s dive in.
Author
Germany’s business landscape keeps shifting year after year, and the numbers tell a clear story of steady expansion. Let’s start by looking at where things stand right now.
Germany was home to roughly 3.54 million business entities in 2024. Destatis puts the figure at close to 3.5 million legal units, and most of them run lean. In fact, 84% of these firms operate with fewer than 10 employees, which says a lot about how small business drives the country’s economy.
The total count of German companies has climbed steadily over the past few years. Firms with fewer than 250 employees grew from 3.418 million in 2022 to 3.453 million in 2023, a bump of about 1.0%. IfM Bonn tracked this rise closely, and the trend holds up year after year.
Year | Companies |
2020 | 3.357 million |
2021 | 3.374 million |
2022 | 3.418 million |
2023 | 3.453 million |
New businesses popped up at a faster clip in 2025. Between January and September, about 487,700 new enterprises registered across Germany, up 6.9% from the same stretch in 2024. Larger startups led this charge, with firms of “greater economic significance” jumping 9.5%.
Closures rose too, though at a much slower pace. Full business shutdowns hit roughly 446,500 in the first nine months of 2025, a rise of just 0.8% year over year. Complete deregistrations for that same window landed near 360,700.
Despite the closures, Germany still came out ahead. New registrations reached about 578,400 in the first nine months of 2025, while closures trailed at 446,500. That gap left the country with a net gain of roughly 131,900 businesses, proof that formation still outpaces attrition.
Not every German company looks the same, and size shapes everything from hiring to turnover. Here’s how the numbers break down across categories, starting with the smallest players.
Micro businesses dominate the German market by a wide margin. Around 3.011 million companies fall into this bracket, employing fewer than 10 people each. That works out to about 85% of every registered firm in the country.
Small businesses come in next, with roughly 429,000 companies employing between 10 and 49 people. They make up close to 12% of the total business population, filling the gap between micro shops and bigger operations.
Germany’s famed Mittelstand sits in the middle of the pack. About 84,700 companies employ between 50 and 249 workers, accounting for roughly 2.4% of all firms. These businesses often punch above their weight in export markets.
Large companies are rare but mighty. Only about 18,600 firms employ 250 or more people, just 0.5% of the total count. Still, their economic footprint reaches far beyond their numbers.
Small and medium enterprises rule Germany’s business scene. Together they make up about 99.5% of all companies nationwide. Large firms hold a tiny 0.5% share, yet they generate 54% of turnover and account for 43% of employment across the country.
Business Size | Share of Total |
Micro | 85% |
Small | 12% |
Medium | 2.4% |
Large | 0.5% |
Different sectors carry very different weights in Germany’s economy. Some industries pack in hundreds of thousands of firms, while others stay lean and specialized. Manufacturing is a natural place to start.
Germany’s manufacturing sector counts about 201,453 companies, a figure that reflects the country’s long-standing reputation as an industrial powerhouse.
Wholesale and retail lead the pack by sheer volume. This sector includes auto repair too, and it totals around 543,301 companies, making it the largest industry group in the country.
Professional, scientific and technical services come in close behind, with about 478,783 companies offering everything from consulting to engineering work.
Construction holds strong with roughly 379,802 companies spread across residential, commercial and infrastructure work.
The info and communication sector runs smaller but sharp, home to about 132,586 companies driving Germany’s tech and media output.
Healthcare and social care make up a sizable chunk too, with around 255,934 companies supporting the country’s aging population and growing care needs.
Transport and logistics stay leaner by comparison, counting close to 99,894 companies that keep goods and people moving.
Hospitality and tourism, covering accommodation and food services, add up to about 232,273 companies across the country.
Industry | Companies |
Wholesale & Retail | 543,301 |
Professional Services | 478,783 |
Construction | 379,802 |
Healthcare & Social | 255,934 |
Hospitality & Tourism | 232,273 |
Manufacturing | 201,453 |
Info & Communication | 132,586 |
Transport & Logistics | 99,894 |
Business activity doesn’t spread evenly across Germany. The country’s largest states pull in the biggest share of companies, while smaller Länder still hold their own. North Rhine-Westphalia tops the list by a wide margin.
North Rhine-Westphalia leads every other state with about 719,530 companies, cementing its spot as Germany’s business hub.
Bavaria follows close behind with roughly 626,829 companies, backed by strong manufacturing and tech sectors.
Baden-Württemberg counts around 462,885 companies, many tied to its deep automotive and engineering roots.
Lower Saxony holds about 290,025 companies, spread across a mix of industrial and agricultural activity.
Hesse comes in with roughly 271,511 companies, anchored by its finance and logistics strength around Frankfurt.
Berlin rounds out the top tier with about 185,558 companies, fueled largely by its startup and creative scenes.
The other ten Länder together hold close to 0.9 million companies. Rhineland-Palatinate leads that group with about 158,573 firms, followed by Saxony at roughly 154,182 and Hamburg at 101,033. Smaller totals round out Brandenburg, Bremen, Saarland and the rest.
State | Companies |
North Rhine-Westphalia | 719,530 |
Bavaria | 626,829 |
Baden-Württemberg | 462,885 |
Lower Saxony | 290,025 |
Hesse | 271,511 |
Berlin | 185,558 |
Rhineland-Palatinate | 158,573 |
Saxony | 154,182 |
Hamburg | 101,033 |
The legal form a company chooses says a lot about how it operates and grows. Germany’s business register breaks these down clearly, starting with the most common setup of all.
Sole proprietorships remain the top choice for German entrepreneurs. About 2,062,752 enterprises ran under this structure in 2024, making it by far the most popular legal form in the country.
GmbH firms fall under Germany’s broader corporation category, which totaled 861,720 enterprises in 2024. This group covers GmbH, AG and UG structures together, and GmbH remains the go-to choice for entrepreneurs who want liability protection without the complexity of a public stock company.
UG companies, often called the “mini-GmbH,” also sit within that same corporation total of 861,720 enterprises. This structure appeals to founders who want limited liability but need a lower capital requirement to get started.
AG firms round out the corporation category too, sharing that combined 861,720 figure with GmbH and UG structures. Stock corporations tend to suit larger businesses that plan to raise capital through public markets.
Partnerships added up to 440,951 enterprises in 2024, covering structures like OHG and KG. Other legal forms, including cooperatives and foundations, brought in another 178,442 enterprises.
Legal Form | Enterprises (2024) |
Sole proprietorships | 2,062,752 |
Corporations (GmbH, AG, UG) | 861,720 |
Partnerships | 440,951 |
Other legal forms | 178,442 |
Germany’s startup scene keeps churning out new ventures at a fast clip, though not every one of them sticks around. Let’s break down what the numbers show.
Entrepreneurs launched about 690,000 ventures in 2025, which works out to roughly 136 per 10,000 people aged 18 to 64. Full-time founders made up about 206,000 of that group, while part-time founders accounted for the remaining 483,000.
German startups struggle a bit more than their OECD peers when it comes to sticking around. Only 61% of new manufacturing firms survive past three years, compared to 67% across the OECD. Services fare worse still, with 53% survival against a 59% OECD average. Longer term, five-year survival tends to land between 50% and 60%.
AI pulled in the most venture capital by far, with German startups raising around $3.9 billion over the twelve months through Q1 2026. Marketing tech, cybersecurity and space also outpaced global averages. Semiconductors, on the other hand, drew comparatively little funding.
German startups raised about $8.1 billion in venture funding during 2025, a tenfold jump over five years. By mid-2026 the country counted 91 unicorns, companies valued above $1 billion, and five of those had crossed into decacorn territory.
Germany’s business count looks quite different depending on which country you stack it up against. Some neighbors run well ahead, while others trail behind.
France outpaces Germany by a wide margin, with about 5.3 million enterprises in 2023 compared to Germany’s 3.2 million. That gap points to structural differences in how each country counts and registers small businesses.
Italy also runs ahead of Germany, counting around 4.6 million enterprises in 2023. Both countries lean heavily on small and family-run businesses, but Italy’s tally still comes in noticeably higher.
The UK falls behind Germany here, with about 2.86 million active businesses in 2024 against Germany’s 3.2 million. Germany holds a clear edge in this comparison.
The US dwarfs Germany in raw numbers, counting roughly 5.58 million employer firms with fewer than 500 employees in 2023. Scale and population size explain much of that difference.
Germany’s 3.2 million enterprises make up about 9.7% of the EU’s roughly 33 million total, a solid share given the bloc’s size.
Country | Active Enterprises |
France | 5.3 M |
US (employer) | 5.58 M |
Italy | 4.6 M |
Germany | 3.2 M |
UK | 2.86 M |
A handful of German giants dominate global rankings, whether you measure by revenue, headcount or market value. Here’s how the top players stack up.
Volkswagen Group sits well ahead of the pack, pulling in €324.7 billion in sales during 2024. Mercedes-Benz Group followed with €145.6 billion, while BMW came in close behind at an estimated €136 to €139 billion.
Volkswagen also leads on headcount, employing about 648,000 people worldwide. Deutsche Post DHL follows closely with roughly 600,000 employees globally. Siemens employs around 311,000 worldwide, while Deutsche Bahn keeps about 211,000 workers within Germany alone.
Siemens tops the market cap rankings as of mid-2026, valued at around $234 billion. SAP and Allianz trail behind, each holding a market cap above $150 billion.
Germany placed roughly 29 to 30 companies on the 2023 Fortune Global 500 list. Volkswagen Group ranked highest at #15 worldwide with $348 billion in revenue, joined by other major names like Daimler, Allianz, BMW and Siemens.
Company | Metric |
Volkswagen | €324.7 b revenue |
Mercedes-Benz | €145.6 b revenue |
Siemens | $234 b market cap |
Volkswagen | 648,000 employees |
International investors have carved out a meaningful slice of the German economy. These foreign-controlled firms bring jobs and value added well beyond their headcount.
Germany counted 40,151 foreign-controlled enterprises in 2023, and together these firms employed about 4.7 million people across the country.
Europe supplies most of this foreign investment, with about 75% of foreign-owned firms tracing back to parent companies within the continent, especially neighboring EU states. Asian parent companies account for roughly 10%, while the US, UK and Switzerland also stand out as major non-EU investors.
Foreign investment leans heavily toward manufacturing and industrial sectors, along with business and personal services. These foreign affiliates tend to punch above their weight too, generating about 18.2% of Germany’s business-sector value added in 2023.
Foreign-owned enterprises contribute close to 15% of private-sector employment across the EU, and Germany falls in line with roughly that same share of jobs coming from foreign-controlled firms.
New businesses keep entering the German market at a healthy pace, even as some older firms close their doors. Here’s what the latest registration data shows.
Germany logged 762,400 new business registrations in 2025, covering startups, takeovers and conversions alike. That marked a 6.4% jump year on year. New firm foundations made up about 640,500 of that total, rising 7.7%, while larger handelsregister firms like GmbH, AG and craft masters added roughly 130,100 registrations, up 7.6%.
Complete business closures totaled 502,200 in 2025, down slightly by 0.2% from the prior year. Total deregistrations, including asset transfers, reached about 612,900, a drop of 1.0%. Even with these closures, net growth stayed positive across the year.
Registrations tend to climb during spring months each year. The first half of 2025 alone saw registrations rise 3.4% compared to the same period in 2024, hinting at a steady seasonal pattern that Destatis tracks in detail month by month.
Trade and crafts lead the pack when it comes to new business activities. Personal and business services follow close behind, along with healthcare and other local service categories, all of which reflect the backbone of Germany’s industry structure.
Germany’s business landscape keeps proving its resilience. With over 3.5 million companies spanning every size and sector, the country continues to add new firms faster than it loses them, even as global economic pressures shift around it.
From its small business backbone to global heavyweights like Volkswagen and Siemens, Germany’s economy draws strength from that mix of scale and diversity. Whether you’re tracking startup trends, comparing markets or just digging into the numbers, these figures paint a clear picture of a business environment that’s still very much on the move.
You need to load content from reCAPTCHA to submit the form. Please note that doing so will share data with third-party providers.
More InformationYou are currently viewing a placeholder content from Turnstile. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
More InformationYou are currently viewing a placeholder content from Vimeo. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
More InformationYou need to load content from reCAPTCHA to submit the form. Please note that doing so will share data with third-party providers.
More Information
