Establishing Companies in Germany

Starting a business in Germany takes time. Before the newly founded company can begin operations, various applications must be approved by the relevant authorities. These include, for example, opening a bank account, determining the company’s registered office, arranging a notary appointment, and choosing the appropriate legal form together with the related tax considerations. On this page, you will find initial information about setting up a business in Germany.

We Support You from Business Idea to Company Formation

After several hundred company formations, we have bundled our experience into a “starter package.” We provide you with everything you need for your business formation — all the information you need to know and the decisions you need to make. For a fixed agreed price, we support you until your company is fully operational.

Which Legal Form Is Right for You?

Choosing the legal form of your business is of crucial importance. This decision involves not only tax matters, but also social security considerations. In Germany, you generally choose between:

• Corporations
• Partnerships
• Sole proprietorships
• Hybrid forms

The quickest and easiest way to get started is usually with a sole proprietorship. It is the simplest form to register and involves the lowest administrative costs. If it is no longer needed, it is also the easiest form to dissolve. However, the entrepreneur is personally liable with their private assets.

In addition to sole proprietorships, corporations are also very common in Germany. These include:

• Public limited companies (AG)
• Limited liability companies (GmbH)
• Entrepreneurial companies with limited liability (UG)

While an AG is usually established only for specific purposes and is relatively complex, a GmbH requires minimum share capital of EUR 25,000 and is considered a highly reputable legal form. By contrast, a UG offers limited liability starting from just EUR 1 in share capital, although it does not enjoy a particularly strong reputation.

Partnerships are also very common in Germany. The best-known forms include:

• Civil law partnerships (GbR)
• General partnerships (OHG)
• Limited partnerships (KG)
• Hybrid forms such as the GmbH & Co. KG

The GbR is the quickest type of partnership to establish and, like the OHG, does not provide limited liability for the partners. A KG consists of at least one general partner and one limited partner, whereby the liability of the limited partner is restricted to their contribution.

From a tax perspective, corporations and partnerships are fundamentally different. Neither legal form is superior to the other in all life or investment situations. Together with our founders, we determine the structure that best suits their needs. And if, during the course of entrepreneurial life, a legal form no longer fits future plans, we can convert a corporation into a partnership and vice versa.

Formation of a GmbH

The most frequently chosen legal form among our clients is the GmbH. Unlike a public limited company (AG), a GmbH does not require a supervisory board, since all business decisions are made by the managing directors.

Danish entrepreneurs wishing to establish a company in Germany are often surprised by how complex the formation process is in practice. Due to the extensive bureaucratic work and communication with German authorities, the process can take considerable time.

We support you throughout the formation process. For a fixed fee, we help you save time and stress and avoid costly mistakes during the start-up phase.

Become Part of a Functioning Network

Taking the first step into self-employment is not always easy when it comes to finding the right partners and advisors. Based on our previous company formations, we often recognize your needs before you do yourself. We maintain contacts with banks, notaries, lawyers, marketing and IT experts, serviced office providers, real estate agents, and insurance companies.

If you wish, we can coordinate meetings with all the necessary partners within just half a day at our offices. This saves valuable time and provides you with a strong foundation for your future business activities. And if you like, you can also become part of our network.

Do you actually need your GmbH Yesterday?

The company formation process in Germany takes time. However, if you need your company more quickly, we have a solution ready for you. Through so-called shelf companies — meaning the acquisition of “empty” legal entities or similar structures — you can begin your activities on the German market much faster. You can find further information on our homepage or simply contact us directly.