Cars will always need repairs, and good mechanics are in short supply - if you have the trade knowledge, the business side can be set up surprisingly quickly. Here is a summary of the steps to get through before your first customer, and what to watch out for with taxes.
Business form: sole proprietor or company?
Most independent mechanics start as a sole proprietor: registration is fast, the administration is lighter, and for one person it is easier to see through. If you are starting with partners, planning a bigger investment (lifts, alignment equipment, diagnostics), or want clearer liability limits, consider founding a company instead - it frames taxation and responsibility differently.
What to sort out in every case
- Business registration with the company registry or the equivalent sole proprietor register
- Tax number from the tax authority - you will also need it for invoicing
- Trade qualification: the repair activity typically requires a recognized trade qualification in the profession
- Site and permits: a workshop zoned and equipped for the activity - ventilation, waste storage, fire safety
- Invoicing: choose an online invoicing tool and register for the required real-time invoicing system where applicable
- Insurance: liability cover for the activity - often required by the landlord anyway
- Waste contractor: a licensed partner for waste oil, filters, tires and batteries (see our environmental guide)
Taxes in short
The main questions are VAT liability (or exemption below the threshold) and how your income is taxed (personal income tax, possibly a flat-rate regime, or corporate tax as a company). The thresholds and the most advantageous form depend on your revenue and costs - always check the current rules with the tax authority or an accountant. A good accountant pays for themselves within the first months.
What to have ready for day one
- A finished, signed price and service list
- A work order template, printed or on a tablet
- A waste management plan that is actually followed
- A working booking system - see below
Start with online booking
Your first customers will mostly arrive through word of mouth and your online profile - but drowning in missed calls is not a business plan. An online booking system like Appointio brings order from day one: the customer books through the link on your website or Google profile, you see your calendar, and reminders go out automatically. Administration stops eating the hours you could spend under the cars.