Anyone who engages in a business activity as a new self-employed person and expects income from self-employed activity in the current year above the applicable insurance limit must register with the Social Insurance Institution for Commerce and Trade (Sozialversicherungsanstalt der Gewerblichen Wirtschaft, SVS). Insurance cover starts upon submission of the registration. The contributions are provisionally assessed by SVS on a quarterly basis in the amount of the minimum contribution. After the end of the third year of insurance the contributions will be adapted due to the results of the tax declaration. This can cause additional payments for the last three years. Attention: Failing to register for compulsory social insurance with SVA in good time carries a penalty of 9.3% on the assessed contributions. The surcharge will not be levied if a report that you have exceeded the insurance limit is made within eight weeks after the relevant tax notice has been issued.