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1. Dear Swaroop, if your family members are German citizens, they have the automatic right to accompany you so they may live and work in the UK. However, if your family members are non-EU citizens, then they must apply for an EEA Family Permit so they may join you in the UK. Here is a link to the UK Government Website which sets out the process for applying
2. You will see that you make the application for an EEA Family Permit from outside the UK. You are guaranteed a response within 30 days but it usually only takes about two weeks for a decision. The application process is online. You will see a link at heading 4. 'apply' which will show you where to apply. Be aware that as an EU citizen, you have the right to have your family come and live with you in the UK. Be aware that your wife or any other member of your family will also have the right to work.
3. If you want to provide any further details I can help you further. Please state what nationality your family are and what passport they have. Please also Rate or Accept the answer as unless you do so your Expert remains unpaid by the website.
4. So long as your wife has sufficient means to support herself and is not a burden on the British welfare system, she can live in the UK with your children whilst you live in Germany. This means that you must be able to support them during their time in the UK, OR else your wife must work.
4. There is no proof required to show you are not a burden on the British welfare system. She simply must not seek State support.
5. There is no such thing as registration with the local council.
6. Be aware that if she is resident in the UK, she will have to pay taxes there if she is earning money from her online shop.
7. You have correctly summarised things. There is no difficulty with your children joining a school. They are to be treated the same as British children as they are EU citizens.
8. Finally, Brexit is the great unknown. However, the bot***** *****ne is that arrangements will be put in place to ensure EU citizens continue to enjoy reciprocal rights as otherwise, British citizens living in other EU countries will be adversely affected.