Germany - Company Incorporation
Individuals and corporations wishing to set up a business in Germany have a number of incorporated and unincorporated company forms to choose from. The most commonly used and most apposite for corporate investors are:
The Limited Liability Company
The basic company in Germany is the Gesellschaft mit beschränkter Haftung - GmBH. This is effectively the same type of company as the SL, the SàRL, the BV or the Limited company in different countries of Europe.
The Branch of a Foreign Company
Foreign enterprises can establish a branch to carry out business in Germany. The branch has to be registered with the commercial register in which it has its seat and has to notify the local district administration when starting business operations. Certain types of business operation may require prove of proper qualification.
Upon registration of a branch evidence has to be provided of the legal existence of the head office, certified copies of the articles of incorporation, the names of all managing directors, the amount of share capital, the seat of the company, its organisation and the names of the person(s) that will act for it in Germany.
The branch is the easiest way for a foreign enterprise to set up business in Germany. Its main drawbacks, however, are that the foreign parent carries full liability for the branch's operations and that it could entail lengthy and cumbersome dealings with the tax authorities over the branch's tax assessments and liabilities.
Stock Corporation
A stock corporation - Aktiengesellschaft - AG is in many ways comparable to a limited liability company - GmbH, but requires a larger minimum capital €50,000, entails a mandatory supervisory board, more elaborate and cumbersome registration procedures and far more stringent accounting and publication provisions.
Starting a Business in Germany
| Clear the name of company at the local Chamber of Industry and Commerce |
| A notary notarises the articles of association and foundation agreement |
| Open a bank account and deposit paid-in capital |
| Notary public files the articles of association with the local Commercial Register, kept at local courts |
| Notify the local Office of Business and Standards of the establishment of the business |
| Register with the professional association of the relevant trade |
| Notify the local labor office of the establishment of the company |