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

Available Add-ons

Additional director

79,00 €

Any additional director, above the included 1 director

Additional shareholder

79,00 €

Any additional shareholder, above the included 3 shareholder

Corporate Shareholder

199 €

A shareholder that is itself a company from Germany, customized articles of association

299 €

A shareholder that is itself a company from any EU country and UK, customized articles of association

499 €

A shareholder that is itself a company from outside the EU and UK, customized articles of association

Notary Appointment & Notarization GMBH standard

699 €

We organize the notary appointment. Our lawyer will take part and guide you through the notary process. Consucutive translation from German to English.
Please be aware: all Notary fees are NOT included.

Commercial Register (“Handeslregister”) Registration

Performed by the notary during notary appointment
Additional Goverment fees will apply & are not included. Commercial Register Court will send you and additional invoice of approx. 155 €

Trade Office (“Gewerbeamt”) Registration

299 €

Filing required documents in German language
Forwarding of trade license
Including government fees
By law, companies are required to register with the local trade office (“Gewerbeamt”) when they start their business.

Chamber of Commerce (“IHK”) Registration

99 €

Registering with formal German letter to the regional chamber of commerce (“IHK”).
Forwarding of welcome-letter
Companies in Germany are automatically a member of the regional chamber of commerce (“IHK”). But you need to register with them manually.

TAX Setup (“Finanzamtsanmeldung”) & VAT application

German Shareholder

999 €

Preparation of the opening balance sheet

Non German Shareholder

1499 €

Examination of tax jurisdiction
Registration with the responsible tax office

Filing application for VAT-number with Federal Central Tax Office („Bundeszentralamt für Steuern“)
Consulting with an individual “Tax in a nutshell” document
Introduction to Accounting Partner

VAT Application

49 €

Filing application for VAT-number with Federal Central Tax Office („Bundeszentralamt für Steuern“)

Bank Introduction

Incl.

Introduction to a German bank to get a German bank account

Remote Incorporation

399 €

Official representation through Clevver’s incorporation lawyer at the German notary
Attention:

  • Does not include your notary and apostille or German consulate costs

English Incorporation documents

99 €

Articles of Incorporation in English language
Managing director appointment in eglish language

Printed Documents

Incl.

Printed Certificate of Incorporation
Printed Memorandum and Articles of Association
Printed Commercial Register Registry
Printed trading supervision department registry
Shipment (with tracking)

Individual lawyer consultancy

149 €

Custom consultancy with our lawyer. 149 € per 30 minutes.

* 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

Available Add-ons

Additional director

79 €

Any additional director, above the included 1 director

Additional shareholder

79 €

Any additional shareholder, above the included 3 shareholder

Corporate Shareholder

199 €

A shareholder that is itself a company from Germany, customized articles of association

299 €

A shareholder that is itself a company from any EU country and UK, customized articles of association

499 €

A shareholder that is itself a company from outside the EU and UK, customized articles of association

Notary Appointment & Notarization GMBH standard

1199 €

We organize the notary appointment. Our lawyer will take part and guide you through the notary process. Consucutive translation from German to English.
Please be aware: all Notary fees are NOT included.

Commercial Register (“Handeslregister”) Registration

Performed by the notary during notary appointment
Additional Goverment fees will apply & are not included. Commercial Register Court will send you and additional invoice of approx. 155 €

Trade Office (“Gewerbeamt”) Registration

299 €

Filing required documents in German language
Forwarding of trade license
Including government fees
By law, companies are required to register with the local trade office (“Gewerbeamt”) when they start their business.

Chamber of Commerce (“IHK”) Registration

99 €

Registering with formal German letter to the regional chamber of commerce (“IHK”).
Forwarding of welcome-letter
Companies in Germany are automatically a member of the regional chamber of commerce (“IHK”). But you need to register with them manually.

TAX Setup (“Finanzamtsanmeldung”) & VAT application

German Shareholder

999 €

Preparation of the opening balance sheet

Non German Shareholder

1499 €

Examination of tax jurisdiction
Registration with the responsible tax office

Filing application for VAT-number with Federal Central Tax Office („Bundeszentralamt für Steuern“)
Consulting with an individual “Tax in a nutshell” document
Introduction to Accounting Partner

VAT Application

49 €

Filing application for VAT-number with Federal Central Tax Office („Bundeszentralamt für Steuern“)

Bank Introduction

Incl.

Introduction to a German bank to get a German bank account

Remote Incorporation

399 €

Official representation through Clevver’s incorporation lawyer at the German notary
Attention:

  • Does not include your notary and apostille or German consulate costs

English Incorporation documents

99 €

Articles of Incorporation in English language
Managing director appointment in eglish language

Printed Documents

Incl.

Printed Certificate of Incorporation
Printed Memorandum and Articles of Association
Printed Commercial Register Registry
Printed trading supervision department registry
Shipment (with tracking)

Individual lawyer consultancy

149 €

Custom consultancy with our lawyer. 149 € per 30 minutes.

* 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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  • Meeting all legal requirements
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