You drop out. Who decides in your company then? An accident, a sudden diagnosis, a few weeks in intensive care are enough for that. For an employee this is above all a health matter. For you as a practice owner, IT entrepreneur or self-employed person with your own team, your business comes to a standstill at the same time.
The short answer. Without a valid Vorsorgevollmacht (German power of attorney for health and financial matters), nobody in your company may sign, pay or decide once you are legally incapable. The Betreuungsgericht (guardianship court) then appoints a stranger who does not know your business. A Vorsorgevollmacht that expressly includes your company, plus a banking power of attorney and, in the case of a GmbH (German limited liability company), additionally Prokura (registered commercial power of representation), prevents exactly that.
What happens to your company without a Vorsorgevollmacht
This is a question I often clarify with entrepreneurs only at a point when it would actually already be too late.
- Nobody may sign. Contracts, approvals and investments are left lying.
- Your team has no contact person. Hires, terminations and approvals come to a halt.
- Invoices and suppliers are not paid. Reminders and, in the worst case, a delivery stop are looming.
- Wages still have to go out, but without approval the money does not reach your people.
- In case of doubt, banks block accounts and credit lines as long as no valid representation is proven.
- The Betreuungsgericht appoints a guardian. A stranger decides about your company without knowing the daily work inside it.
This is not an extreme case, but the statutory standard case. Since the reform of German guardianship law on 1 January 2023, § 1814 (3) BGB expressly states that guardianship is not ordered as far as a valid Vorsorgevollmacht covers the matters equally well. If you are now asking yourself how long your company would financially survive such an absence: that is exactly what I clarify with entrepreneurs in a free initial consultation.
Why the spousal emergency representation right does not protect your company
Since 2023 there is additionally the Ehegattennotvertretungsrecht (spousal emergency representation right) under § 1358 BGB. It applies exclusively to health matters and is limited to six months. For your company that means: it does not cover running credit lines, guarantees or an extension at the bank. Without a power of attorney of your own, those stay with the court-appointed guardian.
The solution: a Vorsorgevollmacht that expressly includes your company
A general Vorsorgevollmacht from the internet is as a rule not enough for a company. Six points matter:
- A Vorsorgevollmacht that expressly covers your company. You decide yourself who represents you.
- A person who knows the daily work in the business. Only then do the decisions fit the company.
- Clear rules on what this person may do, for example payments up to a fixed limit alone and everything above that only with a second signature.
- A separate banking power of attorney at your bank, so payments continue without delay.
- In the case of a GmbH, additionally Prokura or a second managing director as a fallback.
- A yearly check on whether the representation still fits the company.
A Vorsorgevollmacht is a legal document with far-reaching effect. It belongs in the hands of a notary or lawyer, not in a general template from the internet. My part as a financial advisor for Deutsche Vermögensberatung AG (DVAG), tied agent, is a different one: that you think about this gap at all, and that the financial side behind it, from liquidity to the protection of your family, is properly in place.
Your next step
Once the power of attorney is in place, it belongs in the Zentrales Vorsorgeregister (Central Register of Powers of Attorney) of the Bundesnotarkammer, the German Federal Chamber of Notaries. Only a registered document is found by the Betreuungsgericht quickly enough in an emergency for it to ask about it at all. Registration does not replace advice from a notary or lawyer, it only makes sure that an existing document is actually found in an emergency.
Alongside that, a second question remains for your company: is your family protected even without the business? That is what I discuss with entrepreneurs in Lüdenscheid in a free initial consultation, in person at the office or by video.
Frequently asked questions about the Vorsorgevollmacht for entrepreneurs
What happens to my company if I suddenly drop out as an entrepreneur?
Without a valid Vorsorgevollmacht, at first nobody may sign, pay or decide for you. The Betreuungsgericht then appoints a court-appointed guardian who as a rule does not know your business. Contracts, staff decisions and payments can stall during that time.
Is a private Vorsorgevollmacht enough for my company as well?
Only if it expressly includes your company. A general template for private matters often does not cover business decisions as well. In addition you usually need a separate banking power of attorney, and with a GmbH also Prokura or a second managing director.
Does the spousal emergency representation right not already protect me as an entrepreneur?
No. The Ehegattennotvertretungsrecht in force since 2023 under § 1358 BGB applies exclusively to health matters and is limited to six months. It does not cover business decisions for your company.
Where should I have my Vorsorgevollmacht registered?
Registration in the Zentrales Vorsorgeregister of the Bundesnotarkammer makes sense. In an emergency the court can quickly establish there whether a power of attorney exists and where it is kept. The document itself stays with you, the register only records the fact that it exists.
What does a Vorsorgevollmacht for entrepreneurs cost at the notary?
A model case shows the calculation. For an entrepreneur whose business and private assets come to 500.000 euros in total, the transaction value for the power of attorney may be at most half of those assets under § 98 (3) GNotKG, so 250.000 euros here. For a notarial recording, a 2,0 fee under Table B (Annex 2 to § 34 GNotKG) is usually due, at this transaction value around 1.070 euros net, plus expenses and VAT. Depending on the scope of the power of attorney, the actual amount can differ, and legal advice usually comes on top at an hourly rate.
Related reading:
- Advice for business owners in Lüdenscheid: liquidity, staff, risks
- Liquidity planning for business owners
- Wealth building for entrepreneurs
- Source: § 1814 BGB, requirements for guardianship, gesetze-im-internet.de
- Source: § 98 GNotKG, powers of attorney and consents, gesetze-im-internet.de
- Zentrales Vorsorgeregister of the Bundesnotarkammer
Eduard Strekert is a financial advisor for Deutsche Vermögensberatung AG (DVAG), tied agent. This article is general information and does not replace personal advice. It does not constitute investment or tax advice.