Germany – GmbH & UG

Why is it beneficial for a company to incorporate in Germany?

Germany warmly welcomes foreign investors into its open market, roughly 22,000 foreign companies have been established with a workforce of about 2.7 million workers. A total of 7 million people from different nations live in Germany and it is seen as attractive because over 70% of the total workforce speaks very good English. For decades the Germany economy has been recognized as one of the strongest and highly developed economies in the world. With a total population of just under 83 million people, and a VAT of about 19%, Germany is a country that doesn’t seem to stop growing- it is never too late to incorporate.

What kind of corporations can be formed in Germany?

A GmbH (Limited liability company) is the most common business form in Germany, this is because shareholders are not personally liable for the company’s debts. Furthermore, only one person is required to form a GmbH, however the shared capital must be at least €25,000. The articles of association shall be notarised and the company is entered in the publicly accessible Commercial Register. However, the GmbH has another advantage: it offers attractive tax advantages.
An UG (Unternehmergesellschaft) or Business Corporation is another popular form of business organization in Germany, it is made up of a management board that must pay corporate tax, they can own assets or property and can legally sue or be sued. When forming an UG it is important that the company name contains “Unternehmergesellschaft” or UG. Founding an UG is reasonably unbureaucratic and inexpensive because it can be grounded with a starting capital of only one Euro. A standard protocol is available that only requires the purpose of the company to be explained along with a list of the board members and shareholders.

Germany incorporation factsheet

Basis of legal systemUnder Civil Law
Governing corporate legislationGerman companies are regulated under federal law.
StabilityVery stable jurisdiction with an excellent reputation.
Minimum directors/shareholdersMinimum of 1 director and 1 shareholder.
Information published relating to company officersUpon registration of the company, the names of company officers will appear on public record.
Paid up capital requirementMinimum share capital: €1 for UG, € 25.000 for GmbH.
Accounting requirementAccounts and tax filing must be submitted by year-end.
Timespan incorporationGermany requires a notary appointment. Company incorporation can be processed within a few weeks.

Pricing

Cost
Description

UG Incorporation Basic

499 €

Up to 3 individual shareholders included
Up to 1 individual director included
Name Check & Clearance
Standard Articles of Association (“Musterprotokoll”) in German language
1 € Share capital needed, up to 7000 € Share capital possible
Self-service support:

  • Introduction to notary for official founding act
  • How-to document for registrations with trade office and tax office

Attention:

  • Notary and additional registration fees are not included.
  • Notary will provide certificate of incorporation

* The notary fees and the costs for entry in the commercial register (Handelsregister) are not included in the price and will be charged separately.
Cost
Description

GmbH Incorporation Basic

799 €

25.000 € share capital (12.500 € must be paid to bank account to start)
Up to 3 individual shareholders included
Up to 1 individual director included
Name Check & Clearance
Standard Articles of Association (“Musterprotokoll”) in German language
Self-service support:

  • Introduction to notary for official founding act
  • How-to document for registrations with trade office and tax office

Attention:

  • Notary and additional registration fees are not included.
  • Notary will provide certificate of incorporation

* The notary fees and the costs for entry in the commercial register (Handelsregister) are not included in the price and will be charged separately.
All prices excluded VAT

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