diff --git a/README.md b/README.md
index 9144fa9..1ac9932 100644
--- a/README.md
+++ b/README.md
@@ -1,13 +1,18 @@
-# Aam Digital Services
-
+# Aam Digital Services (aam-backend-service)
 Collection of aam-digital services and tools
 
-### aam-backend-service
-
 [![Maintainability](https://api.codeclimate.com/v1/badges/57213b5887a579196d6d/maintainability)](https://codeclimate.com/github/Aam-Digital/aam-services/maintainability) [![Test Coverage](https://api.codeclimate.com/v1/badges/57213b5887a579196d6d/test_coverage)](https://codeclimate.com/github/Aam-Digital/aam-services/test_coverage)
 
 A modularize Spring Boot application that contains API modules for [Aam Digital's case management platform](https://github.com/Aam-Digital/ndb-core).
 
-#### API Modules
+## Setup
+1. Create additional databases in CouchDB: `report-calculation` and `notification-webhook` (used by the Reporting Module to store details)
+2. Set up necessary environment variables (e.g. using an `application.env` file for docker compose):
+    - see [example .env](./docs/examples/application.env)
+    - CRYPTO_CONFIGURATION_SECRET: _a random secret used to encrypt data_
+3. See ndb-setup for instructions to enable the backend in an overall system: [ndb-setup README](https://github.com/Aam-Digital/ndb-setup?tab=readme-ov-file#api-integrations-and-sql-reports)
+
+
+## API Modules
 
 - **[Reporting](./docs/modules/reporting.md)**: Calculate aggregated reports and run queries on all data, accessible for external services for API integrations of systems
diff --git a/docs/examples/application.env b/docs/examples/application.env
new file mode 100644
index 0000000..118a7a4
--- /dev/null
+++ b/docs/examples/application.env
@@ -0,0 +1,26 @@
+CRYPTO_CONFIGURATION_SECRET=<random secret used for encryption>
+SERVER_PORT=3000
+SPRING_WEBFLUX_BASE_PATH=/api
+SPRING_SECURITY_OAUTH2_RESOURCESERVER_JWT_ISSUERURI=https://keycloak.aam-digital.com/realms/<your-realm>
+SPRING_RABBITMQ_VIRTUALHOST=/
+SPRING_RABBITMQ_HOST=rabbitmq
+SPRING_RABBITMQ_LISTENER_DIRECT_RETRY_ENABLED=true
+SPRING_RABBITMQ_LISTENER_DIRECT_RETRY_MAXATTEMPTS=5
+LOGGING_LEVEL_COM_AAMDIGITAL_AAMBACKENDSERVICE=trace
+COUCHDBCLIENTCONFIGURATION_BASEPATH=http://couchdb:5984
+COUCHDBCLIENTCONFIGURATION_BASICAUTHUSERNAME=admin
+COUCHDBCLIENTCONFIGURATION_BASICAUTHPASSWORD=<couchdb-admin-password>
+SQSCLIENTCONFIGURATION_BASEPATH=http://sqs:4984
+SQSCLIENTCONFIGURATION_BASICAUTHUSERNAME=admin
+SQSCLIENTCONFIGURATION_BASICAUTHPASSWORD=<couchdb-admin-password>
+DATABASECHANGEDETECTION_ENABLED=true
+REPORTCALCULATIONPROCESSOR_ENABLED=true
+SENTRY_AUTH_TOKEN="<sentry-token>"
+SENTRY_DSN=<sentry-dsn>
+SENTRY_TRACES_SAMPLE_RATE=1.0
+SENTRY_LOGGING_ENABLED=true
+SENTRY_ENVIRONMENT=
+SENTRY_SERVER_NAME=<your-realm>.aam-digital.com
+SENTRY_ATTACH_THREADS=true
+SENTRY_ATTACH_STACKTRACE=true
+SENTRY_ENABLE_TRACING=true
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