German Company RegistrationDownload Information Sheet
The key features of a German Company Formation are:
- The company only needs one Director and one Shareholder
- The Directors and Shareholders can be any nationality and can reside anywhere
- The liability of shareholders is limited to their investment in the company
- Germany has the largest economy in Europe
- No licences are required to start a Company, unless your business activities include insurance, medicine etc.
- Germany is an attractive jurisdiction for investors looking to form a company in Europe
Germany is in Western and Central Europe, with Denmark bordering to the north, Poland and the Czech Republic to the east, Austria and Switzerland to the south, France and Luxembourg to the southwest, and Belgium and the Netherlands to the northwest. Germany is also bordered by Lake Constance, the third largest lake in Central Europe.
The most common type of German Company Formation is a Gesellschaftmitbeschränkter Haftung – GmbH-Private Limited Liability Company. This type of company can be incorporated in Germany by at least one investor with a minimum share capital of 25000 EUR. A GmbH Company is a legal entity that is separate from the individuals who run it.
Germany’s business sector is well known for its engineering, technical and automotive industries and it has a stable economy and well-developed financial market. Germany is an attractive jurisdiction for investors looking to form a company in Europe.
To request a free consultation about your Germany company formation with our experienced team, please call us on +44 (0)1302 729041 or email [email protected]. Alternatively, use the live chat facility on our website.
Why not take a look at our article on offshore company benefits?
What's included for £3950.00 (price may vary depending on requirements)
- German Company Formation - GMBH / UG
- German Government Registration Fees
- Registered Office for 1 Year
- Registered Agent for 1 Year
- Certificate of Incorporation
- Memorandum and Articles of Association
- Register of Directors
- Register of Shareholders
Once all the required identification documents are produced, the German company formation process will take approximately 2 weeks subject to compliance review.
Please Note: Due to the difference in time zones we work on, the replies will not always be immediate from the agent and can impact the response time.
Offshore Bank Account
After forming your German Company Formation, you may wish to open a Business Bank Account. CFS International Formations have a close working relationship with many Banks.
The Banks we have chosen to work with meet our high standards of confidentiality, have a high reputation and offer a wide range of banking services which we believe will best suit your requirements.
To apply for a Bank Account, you will need to comply with the identification requirements. Like us, the Bank must ensure they are complying with the authorities, as this will help to reduce the chances of Money Laundering.
Listed below are the Accounts we are able to offer you for your German Company:
Why form a company in Germany?
Germany is the financial hive of the EU, with more than 1.6 Billion EUR spent in 2012. It is a centre for transportation and a bustling hive of business incorporation. The country is also renowned for protecting its peoples’ intellectual property- with copyright and fringe laws being at the forefront of business. Additionally, all German constituencies provide free professional information for its entrepreneurs, and will help to find you relevant incentives for your formation.
The GmbH (GmbH-Private Limited Liability Company) is the most popular company formation within Germany, this is because it offers flexibility towards its shareholders. The formation is its own legal entity, separate from its directors. There are no legal requirements for the director(s) to reside in Germany, so long as they can obtain a working Visa to enter the country.
There are no specific legal requirements for shareholder(s). The shareholder(s) are not liable for credit if their share contribution has been paid in. It is also important to note that shares are able to be transferred and/or disposed of with no limits.
Tax information for your German Company Registration
Corporate Income Tax is applicable to both resident and non-resident businesses. Resident companies on their worldwide income, whereas non-resident companies are responsible for paying Corporate Income Tax on profits made within the country.
All businesses are subject to Municipal Trade Tax.
Trade Tax is dependent on the area that the business conducts in and varies throughout the country.
Group Companies are able to pool their profits and losses together, with the parent company becoming liable for the taxable income accrued. Additionally, losses of up to 1,000,000 EUR can be brought forward indefinitely throughout the course of business.
A GmbH may also be applicable for an SME (small and medium-sized enterprises) grant, which reduces taxes on a company reporting less than 235,000 EUR in their equity capital.
If the GmbH is a trading company it is also legally expected to add German VAT to its prices of goods and services, and to charge its customers in accordance.
Company Name for your German Company Registration
A German Company Formation (GMBH) must have its name registered on the Register of Commerce.
The name must not be misleading in regards to the businesses activities and must end in the appropriate legal suffix. For example, ‘Limited’, ‘Ltd’ or ‘GMBH’
The name must not contain any Trademark registered words, the company’s name cannot be confused with another company registered within the same borough.
Directors, Shareholders and Secretary
To set up a German Company Registration (GmbH-Private Limited Liability Company), there must be a minimum of one director and one shareholder. Throughout the initial set-up of a German Company Registration, there are two crucial meetings that have to occur to establish persons’ with significant control. There may only be a maximum of three shareholders.
The first meeting is held between both the managing director(s) and shareholder(s). The second meeting is held by its shareholders, where they make the decision to appoint the company’s managing director of operations.
Names, addresses and nationality of the company’s shareholder(s) must be disclosed on public record. If there are any changes to these they must be reported.
A Company Director and Shareholder is required within a German Company Formation.
Please note that if the company has a complex corporate structure, an additional compliance fee may apply.
The minimum investment capital for forming a German Company Registration (GmbH-Private Limited Liability Company) is 25,000 EUR, however, it is only 12,500 EUR that has to be paid in at the time of formation.
However, it is important to note that within a GmbH Partnership (GmbH & Co. KG), there is no minimum required share capital.
Shares within a GmbH are governed by the Private Limited Companies Act.
The Initital Deposit must be deposited to a German Bank Account, this is removable once we receive confirmation and proof the deposit has been transferred.
It is important to note with a GmbH that a quarter of its annual profits must be allocated within reserves and not payed to its shareholders as dividends.
Annual Accounts for GmbH-Private Limited Liability Companies have to comply with the regulations set out in the German Commercial Code. Excluding sole-traders, the annual accounts are made-up on the basis of the following factors:
- The total amount on the balance sheet
- The annual turnover
- The total amount of employees
Additionally, if a GmbH-Private Limited Liability Company’s securities are traded within the regulated market, the directors are legally responsible for producing a Financial Statement using International Financial Reporting Standards. Dependent on the size of the company, you may need to file a Financial Statement and provide an Audit Certificate at the German Commercial Registry, however, smaller GmbH companies only need to file a balance sheet and notes with the German Federal Gazette.
Yearly Renewal £1,640.00
On a yearly basis a German Company must renew their Registered Office Address.
The price to renew the Registered Office Address is £1,640.00
Germany is a Western European country with a landscape of forests, rivers, mountain ranges and beaches on the North Sea. It has over 2 millennia of history. Berlin, its capital, is home to art and nightlife scenes, the Brandenburg Gate and many sites relating to WWII. Munich is known for its Oktoberfest and beer halls, including the 16th-century Hofbräuhaus. Frankfurt, with its skyscrapers, houses the European Central Bank.
If you would like an Additional Service for a German Company Formation, please contact our office with your requirements and we will be happy to assist you.
Due Diligence Documents:
To comply with Money Laundering regulations, CFS Formations are requried to collect Due Diligence documents for officers within your company.
For a Germany Incorporation we would require the following documents:
- Certified Copy of a Passport
- Certified Copy of a Utility Bill e.g., Gas / Electrical or Bank Statement (dated within the last 3 months)
If your business activities are classed as high risk, involve gambling or crypto currency, they may incur additional costs. We can check this before you order. Please contact our team for any further assistance you may require.
Ready Made Offshore Companies
A Ready Made Company is a company which has previously been formed and been stored as a non trading company. By purchasing a Ready Made Company you can:
- Boost your business with an established company
Appear to be a reliable company that has been in business for several years
- Establish Business Relationships Easily
Business and Banking relationship are easily established with an older previously registered company
- Gain Confidence from customers
New and existing clients will feel more confident in dealing with you as your company has a history
- Be Reassured
All our Ready Made Companies are non trading companies, are totally clean and clear of any business debts and liabilities
Please click here to view more information about Offshore Ready-Made Companies and how they may benefit you. You will also be able to view a list of the countries where we can offer Offshore Ready-Made Companies. Unfortunately, the list of company names is always changing due to customer purchases. Therefore, we are unable to provide an exact list of the available company names on our website. To obtain the most recent list of available companies, please contact us.
Why use CFS for your German Company Registration
We pride ourselves on providing a first-class service on all our German company formation.
Our team specialises in ensuring your German company registration is dealt with quickly and efficiently with the utmost confidentiality. Our German company formation package includes the required registered office (holding address) and a registered agent.
We have an easy online order form which can be used for German company registrations which reduces the need for lengthy forms to be completed.
Once you place an order you will have a dedicated business administrator who will deal with all necessary requirements of the German company formation on your behalf.
Most jurisdictions have laws which require a licenced agent be located in their specific jurisdiction and for them to submit all incorporations and other relevant applications.
The on boarding, compliance and formation will be processed by the agent with CFS acting as introducer and intermediary.
Do I have to travel to Germany to set up my German Company Registration?
No, you may give Power of Attorney- which means you do not have to travel and you can set up your Germany company formation from the comfort of your own home or office.
Do I need to have a Registered Office Address in Germany?
Throughout filing the incorporation of a GmbH it is legally required to have an office address within Germany, however, administrative duties can be carried out anywhere in the world.
Do I need to provide original Due Diligence Documents?
To Incorporate the Company quickly we will be able to accept scanned copies of the certified Due Diligence Documents.
However, in order to release the Company Documents to you, we will require your original certified documents posting to us.
‘I needed to set up a company in Germany and the CFS team were exceptionally helpful! I couldn’t believe how easy the process was. They answered all of my questions and updated me continually throughout the process. The team were always friendly and I would recommend anyone who was thinking about a German Company Registration to use them!’
Company Formation Agent – Ireland