Company Registration in Germany- An Overview

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Timeline for Company Registration in Germany Register a company in Germany in 2-3 weeks
Fee for Company Registration in Germany The fee for company registration in Germany is USD 2999.
Benefits of online company formation in Germany Given below are the significant benefits of company formation in Germany-
  • No Discrimination
  • Transparency
  • Well Developed Infrastructure Facilities
  • Largest Consumer Market
  • Financial Incentives
  • Effective Startup Environment
  • Tax Advantages
  • Minimal Corruption
  • No Exchange Controls for Foreign Investments
Types of Structures for Business Setup in Germany
  • The Limited Liability Company (GmbH)
  • The Joint Stock Company (AG)
  • The General Partnership (OHG)
  • The Limited Partnership (KG)
  • Branch Office
  • The Sole Trader
  • The Civil Law Partnership (GBR)
Prerequisites for Company Registration in Germany
  • Articles of Association
  • Minimum share capital 50,000 EUR (German Joint Stock Company)
  • Minimum Share Capital 25,000 EUR (Private Limited Company)
  • Minimum Share Capital 1 Euro (Mini Private Limited Company)
  • At least 1 shareholder
  • At least 1 director (any nationality)
  • Both director & shareholder can be same or different person
  • 100% local or foreign shareholding allowed
  • A local registered office address
  • Corporate bank account opening
List of Documents Required for Company Registration in Germany Given below are the list of documents required for company registration in Germany-
  • Passport Copy of the Shareholders
  • Passport Copy of the Directors
  • Memorandum of Association (MoA)
  • Articles of Association (AoA)
  • Registered Local Address of the Company
  • Visa of the Director (Foreign Resident)
Procedure for Company Registration in Germany Procedure for Company Registration in Germany include the following:
  • Choosing the Right Business Structure
  • Crafting of Detailed Business Plan
  • Securing a Business Address
  • Notarizing Incorporation Documents
  • Registering with Commercial Register
  • Opening a Corporate Bank Account
  • VAT Registration
  • Complying with the Germany Commercial Code
  • Hiring Employees and Setting up Payroll Systems
  • Regular Compliance and Reporting
How can we help you with company registration in Germany? Start a Business in Germany with the expert assistance of Enterslice:
  • Expert Guidance
  • Simplified Registration Process
  • End-to-End Support
  • Post-Registration Assistance
  • Process Efficiency
  • Germany Corporate Formation Services
  • Offshore Company Incorporation in Germany

Register a Company in Germany from Anywhere!

Let our experts at Enterslice help you register a company in Germany from wherever you want.

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Company Formation in Germany- 100% Foreign Ownership

Germany, one of Europe's most populous countries, is a prime destination for global businesses. Its central location and advanced infrastructure make it an ideal choice for company registration in Germany. As the largest economy in Europe and the fourth largest worldwide, Germany offers unmatched opportunities for business growth and expansion making it a perfect choice for company formation in Germany.

The government of Germany offers an abundance of financial support, market stability with appreciation in the economy, and an advanced commercial market for businesses to find reliability and provide their facilities across the geographical boundary of the country. Let business consultants at Enterslice help you start and manage your business in Germany and you can focus on your business growth.

100% Foreign Ownership

Tax-free Shopping for Non-EU Residents

DTA with Over 90 Countries

Less Corruption

Deep Commitment to Innovation

Consumer Base with High Spending Power

High Tech Infrastructure

Advanced Research Market

Leading Stable Trading Economy

Structures for Company Registration in Germany

Have a look at the significant structures for company registration in Germany-

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Limited Liability Company- GmbH (Gesellschaft mit beschränkter Haftung)

This entity requires a minimum of 1 investor and a share capital of at least 25,000 EUR. Shares of a German GmbH cannot be publicly traded or listed on the stock market.

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Branch Office (Zweigniederlassung)

Popular among foreign investors, a branch office is dependent on its head office and managed centrally from there. It allows businesses to enter the German market while maintaining control from the parent company.

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German Joint Stock Company- AG (Aktiengesellschaft)

Designed for large businesses, the AG requires a minimum share capital of 50,000 EUR. It must have Articles of Association, verified by a court or notary. Only after being entered into the commercial register does the AG become a legal entity.

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Limited Partnership- KG (Kommanditgesellschaft)

This partnership structure offers liability limitation with two types of partners: the general partner, who has unlimited liability extending to personal assets, and the limited partner, whose liability is confined to their shareholding in the firm.

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General Partnership- OHG (Offene Handelsgesellschaft)

It is a partnership business structure formed to carry out a commercial business. At least two people must come together to form an OHG. It is one of the known structures for company registration in Germany.

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Sole Trader (Einzelunternehmen)

A simple and flexible structure requires only one individual to establish the business. It’s the cheapest and easiest way to set up your dream business in Germany. The owner is liable for the obligations and debts of the business.

Legal Framework for Business Setup in Germany

The legal framework for business setup in Germany is as follows:

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  • German Commercial Code (Handelsgesetzbuch - HGB) This code governs business activities in Germany, including commercial transactions, accounting, and the regulation of commercial entities like companies and traders.
  • German Civil Code (Bürgerliches Gesetzbuch - BGB): The BGB applies to the formation of contracts, partnerships, and limited liability companies (GmbH). It includes regulations on contract law, the legal framework for partnerships, and other business structures not governed by the HGB.

Benefits of Offshore Company Incorporation in Germany

Given below are the significant benefits of offshore company incorporation in Germany-

No Discrimination

There is no discrimination between the residents and outsiders when it comes to starting a offshore company Incorporation in Germany and place no restrictions on the repatriation of proof.

Transparency

Germany is one of the world's most transparent countries for doing business. The process of company registration in Germany is straightforward, making it easier for investors to establish their companies.

Well Developed Infrastructure Facilities

Germany offers world-class infrastructure, including a state-of-the-art telecommunications system. Additionally, the country boasts high-speed transport facilities.

Largest Consumer Market

Germany has approximately 82.4 million population, making it one of the biggest consumer marketplaces in the EU. It is also the 2nd biggest importer and 3rd biggest exporter of consumption agricultural goods globally.

Financial Incentives

The German government provides a range of public financing mechanisms and incentive programs to support company registration. These initiatives can be utilized for various financing purposes, helping businesses achieve their goals.

Effective Startup Environment

Berlin, Munich, and Hamburg are the most active and startup-friendly cities in Germany. Over the past decade, Berlin has become the country's leading technology hub. It is one of the key benefits of company registration in Germany.

Tax Advantages

Germany has signed double taxation treaties with over 90 countries to reduce corporate tax burdens and prevent double taxation, making it easier for foreign entrepreneurs to do business. An unmissable merit for company registration in Germany.

Minimal Corruption

Germany is recognized as one of the least corrupt countries globally for company registration in Germany. According to the 2018 Transparency Index, it ranks among the top 20 nations with the lowest levels of corruption.

No Exchange Controls for Foreign Investments

Germany imposes no exchange controls on foreign investments. This enables foreign firms and organizations to freely invest and operate within the country. It’s one of the significant benefits of online company formation in Germany.

Procedure for Company Registration in Germany

The step-by-step procedure for company registration in Germany is as follows:

Choosing the Right Business Structure

Germany offers various business structures. Applicants must first select the most appropriate structure. For instance, establishing a GmbH requires a minimum share capital of EUR 25,000.

Crafting a Detailed Business Plan

The applicant must create a comprehensive business plan detailing the objectives, market analysis, financial projections, and growth strategies to establish a business in Germany.

Securing a Business Address

The applicant company must secure a local business address in Germany. Choose a location that aligns with your business needs and target market, as this is essential for legal and administrative purposes.

Notarizing Incorporation Documents

To legally establish your company, documents like the Articles of Association must be notarized. At this stage, ensure these documents are authenticated by the appropriate authority.

Registering with Commercial Register

Once all the required documents are prepared, the applicant must register the company with the local Commercial Register (Handelsregister). Upon successful registration, the company will be legally recognized in Germany.

Opening a Corporate Bank Account

Opening a corporate bank account is mandatory in Germany. The initial share capital, such as EUR 25,000 for a private limited company (GmbH), must be deposited into this account.

VAT Registration

One should obtain a VAT registration with the local tax office as it is an important part of business compliance in Germany.

Complying with the Germany Commercial Code

After obtaining Company Registration in Germany, the company must comply with the German Commercial Code (Handelsgesetzbuch). This is crucial for the smooth operation of legal and financial processes.

Hiring Employees and Setting up Payroll Systems

In case the company in Germany is hiring employees, then they must comply with German employment laws.

Regular Compliance and Reporting

After obtaining company registration in Germany, it is essential to maintain regular compliance with ongoing legal and financial obligations, including tax filings, corporate governance, and report submissions.

Prerequisites for Online Company Formation in Germany

The list of prerequisites for online company formation in Germany is as follows:

Articles of Association

Drafting of AoA (Articles of Association) Business Setup in Germany is the first step to start with the process of company incorporation.

Minimum Capital Requirements

A minimum of 50,000 EUR is required for the German Joint Stock Company, the private limited company. The minimum capital required is 25,000 EUR. Though private limited company can be set up with minimum share capital of one euro.

Director and Shareholder

A company requires at least one shareholder and one director, both of any nationality. The same individual or entity can hold both roles.

Local Address

A local registered office in Germany is required to be set up to carry out the business. It’s a key essential for online company formation in Germany.

Bank Account

Bank account opening in Germany is a must to Start a Business in Germany and a director or a representative of the company must visit Germany to open a bank account.

Documents Required for Company Registration in Germany

The list of documents required for company registration in Germany is as follows:

Passport Copy of the Shareholders

Passport Copy of the Directors

Memorandum of Association (MoA)

Articles of Association (AoA)

Registered Local Address of the Company

Copy of the National Identity Card of Shareholders

Copy of the National Identity Card of Directors

Residential Addresses of Directors and Shareholders

Document of Management Board Structure

Visa of the Director (Foreign Resident)

Board Resolution Details

Bank Certificate Indicating the Minimum Share Capital

Can Global Entrepreneurs Register a Company in Germany?

Germany is a prime destination for entrepreneurs looking to establish a business in Europe. The government actively promotes foreign investment across various industries, offering strong support to facilitate business operations. The key requirements for foreign investors to register a company in Germany are outlined in international trade statutes, ensuring clarity and transparency. However, some restrictions apply, particularly in sectors like defence and areas related to public order.

The process of offshore company incorporation in Germany aligns closely with that of local companies. Entrepreneurs must obtain trading licenses and necessary permits and can also benefit from financial grants provided by the government. This streamlined approach ensures that both local and foreign businesses operate under the same legal framework, fostering an inclusive and robust business environment. Yes, Germany can be a dream spot to register a company.

Business Ideas for Online Company Formation in Germany

The most profitable and flourishing business opportunities for online company formation in Germany are as follows:

  • Real Estate Business
  • EdTech Company
  • Digital Marketing Agency
  • Dropshipping Business
  • Food Business
  • IT services
  • Travel and Tourism

Talk to Enterslice consultants, and let us help you overcome the challenges with minimum effort.

Tax Structure for Business Setup in Germany

The list of tax structures for business setup in Germany is as follows:

  • The standard corporate tax rate in Germany is 15%, with an additional surcharge of 5.5% applied to it.
  • The trade tax rate varies depending on the firm's location. It consists of a standard rate of 3.5% combined with a municipal tax rate specific to the area of the permanent establishment.
  • The standard Value Added Tax (VAT) rate in Germany is 19%. However, certain prod-ucts are subject to a lower VAT rate of 7%.
  • Companies that meet specific income thresholds are required to make social security contributions based on the earnings and income they receive.

Requirements to Start a Business in Germany for Non-residents

The list of requirements to start a business in Germany for Non-residents is as follows:

  • Must be at least 18 years old.
  • Not legally banned from practising the profession in which one wants to set up a business.
  • Must have the correct residence title or work permit.
  • Minimum paid-up capital 25,000 EUR
  • At least one shareholder for the Limited Company
  • At least one director

Cost for Company Registration in Germany

The cost for company registration in Germany is as follows:

  • The company formation fee for opening a legal entity in Germany is approximately 1,800 Euros (Rs.162,000)
  • The virtual office package cost is approx. 208 Euros per month (Rs. 18,720/-)
  • The accounting fees for German companies start from 100 euros per month (Rs.9000/-)
  • The registration fee for GmbH in Germany is approximately 400 euros, and other like notary fees will apply.
  • The minimum share capital for the limited liability company is 25,000 Euros (Rs.2,250,000/-) and 100 EUR (Rs.9000/-) for Mini GmbH.
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Why Opt for Enterslice for Company Registration in Germany?

Enterslice has proved its mettle as Asia’s leading consulting firm for company registration in Germany over the years. You may opt for Enterslice for company registration in Germany for the following reasons:

  • 10+ Years of Experience in Helping Entrepreneurs with Company Registration in Germany
  • In-depth Knowledge of German Business Laws and Regulatory Updates
  • Supported 400+ Global Entrepreneurs with Company Registration in Germany
  • 99% Success Rate in Completing Offshore Company Incorporation in Germany
  • 200+ Local Partners to Ensure Stress-free Company Registration in Germany
  • Compliance Management Solutions for Business Setup in Germany
  • 24/7 Availability of Expert Consultants to Resolve your Queries
  • Germany Corporate Formation Services to Empower Your Business Dreams
  • Consulting Support for German Commercial Registration
  • End-to-end Assistance for Online Company Formation in Germany

FAQs on Online Company Formation in Germany

Yes, foreign entrepreneurs or non-residents can start a business in Germany, provided that they respect the requirements of the commercial code.

Yes, it is mandatory to register a company in Germany if you are looking for Company Registration in Germany.

Given below are the types of business structures available for company registration in Germany-

  • The Limited Liability Company (GmbH)
  • The Joint Stock Company (AG)
  • The General Partnership (OHG)
  • The Limited Partnership (KG)
  • The German Branch Office
  • The Sole Trader
  • The Civil Law Partnership (GBR)

The minimum share capital for company registration in Germany is 25,000/-Euros for a limited liability company and 50,000 Euros for a joint stock company or a limited partnership in Germany.

The benefits of business setup in Germany are no discrimination, transparency, well-developed infrastructure facilities, the largest consumer market, financial incentives, an effective startup environment, etc.

Here is the list of documents required to start a business in Germany:

  • Articles of Association
  • Memorandum of Association
  • Proof of Share Capital Deposited in the Company’s Bank Account
  • Current Bank Account Details
  • Electricity Bills
  • Utility Bills
  • Directors and Shareholders Identity Cards
  • Proof of Registered Office Address

Yes, you can register a company in Germany from India, the process for company registration depends upon the type of business structure that one opts for depending on the business interest. It is recommended to get expert advice and a consultant for better understanding.

The corporate tax for company registration in Germany is 15% with a 5.5% solidarity surcharge.

The estimated time for company registration in Germany is typically 2 to 3 weeks.

Have a look at the process for online company registration in Germany-

  • Choose the Right Business Structure
  • Craft an In-depth Business Plan
  • Secure a Business Address
  • Notarize Incorporation Documents
  • Register with Commercial Register
  • Open a Corporate Bank Account
  • VAT Registration
  • Comply with the Germany Commercial Code
  • Hire Employees and Set Up Payroll Systems
  • Regular Compliance and Reporting

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