SOKA-BAU Registration for Foreign Construction Companies

Bürodienstleistungen Optima GmbH Construction

What is SOKA-BAU?

SOKA-BAU is the umbrella term for two social funds of the German construction industry: the Holiday and Wage Compensation Fund (ULAK) and the Supplementary Pension Fund (ZVK). These institutions provide construction workers with holiday pay, vocational training and supplementary pension benefits.

The legal basis is the Posted Workers Act (§ 1 AEntG) and the universally binding collective agreement for the construction sector (TV Bau). This agreement applies to all companies that post workers to construction sites in Germany — regardless of the employer’s country of registration.

Who Must Register?

Every company whose primary activity falls within the scope of § 1 AEntG and that posts employees to Germany is required to register with SOKA-BAU. This includes:

  • Polish, Czech, Slovak and other EU-based construction contractors
  • Subcontractors working on German construction projects
  • Companies operating under works contracts or temporary staffing arrangements in the construction sector

The registration obligation applies from the very first day of posting — there is no grace period.

Deadlines and Reporting Procedure

Registration must be completed before the posting begins. SOKA-BAU provides an online portal where companies submit their company details, the names of posted workers and monthly working hours. Monthly reports must be filed by the 15th of the following month.

In addition to SOKA-BAU registration, companies must simultaneously submit a prior notification to the German customs authority (Zollamt) via the ZAPP-Online system under § 18 AEntG.

Required Documents

For initial registration with SOKA-BAU you will need:

  • Company registration extract (with certified translation into German)
  • Social security certificates for posted workers from the home country (A1 certificate)
  • Details of the construction site, client and project duration
  • Copies of employment contracts (if requested)

Consequences of Non-Compliance

Violations of SOKA-BAU reporting obligations can be prosecuted as an administrative offence and fined up to €500,000. In addition, civil law claims for unpaid holiday contributions may be made retroactively for up to four years.

General contractors bear subsidiary liability under § 14 AEntG for the payment of social fund contributions by their subcontractors. Proper registration therefore protects both parties.

How We Can Help

Registering with SOKA-BAU and managing ongoing reporting obligations involves significant administrative effort — especially for foreign companies unfamiliar with German authorities and forms.

Bürodienstleistungen Optima GmbH handles the complete SOKA-BAU process for your company: from initial registration and monthly filings to correspondence with SOKA-BAU on your behalf. Contact us today — we advise in Polish, German and English.