Germany > Legal entities > Establishing a company in Germany
Establishing
a Company
in Germany
(GmbH / UG)
Are you planning to expand your business activities to the territory of Germany? We will advise you and help you with setting up your company.
We can help you with administration and solutions in Germany
Are you planning to expand your business activities to the territory of Germany and do not know which type of business to choose? We can advise and assist you with the establishment of a company in Germany (limited liability company – so-called GmbH, organisational unit, UG, limited partnership, etc.). The most sought-after form in Germany is the establishment of a limited liability company (GmbH) with a minimum capital of EUR 25,000.
In Germany, companies are incorporated by notarial deed. To speed up the process, we recommend that you come to the notary public in person, and we will be happy to accompany you to the notary public also in order to ensure the necessary translation.
The name of the company as well as the subject of business must be approved by the Chamber of Commerce and Industry (IHK) competent according to the company’s future registered office before the company is registered in the commercial register. Each company must have a bank account into which the share capital is paid.
German banks have recently been very strict when it comes to opening accounts with disposition rights for foreigners and many banks refuse to open accounts for such newly established companies or ask for a large amount of documents. However, based on our many years of experience on the German market, we can also help you overcome this administrative barrier.
Frequently asked questions
What is the difference between a GmbH and a UG in Germany?
The GmbH has a statutory share capital of 25,000 euros, while the UG can be established with a lower share capital, theoretically from one euro. However, the UG must create a legal reserve until it reaches the level of the GmbH share capital. We will compare both forms according to your business plan and recommend a suitable solution.
How much share capital must be paid up when establishing a GmbH?
Before a GmbH formed with cash contributions is entered in the commercial register, at least one quarter of the nominal value of each share and, in total, at least half of the minimum share capital—EUR 12,500—must be paid in. The precise payment method depends on the formation documents and any non-cash contributions. We prepare the company formation in cooperation with a notary and other partners.
What steps does setting up a company in Germany involve?
Company formation generally includes choosing the legal form and name, preparing the formation documents, completing the notarial formalities, paying the contribution, registering the company in the commercial register and completing the subsequent tax and other registrations. The exact procedure depends on the company’s legal form and activity. We coordinate the individual steps and communication with the German institutions.
Does a new German company need to have a bank account?
Before the company is entered in the commercial register, it must provide evidence that the cash contributions have been paid. In practice, this is usually done through an account opened for the company being formed. The requirements of banks and the register may vary depending on the case and the ownership structure. We help prepare the documents needed to open the account and register the company.