Germany is known as the European Union's business hub and powerhouse. In Germany, a lot of industries engage in activities connected to resource manufacturing and production. All of these qualities encourage investors to register a company in Germany.
Germany is regarded as one of the European Union’s economic powerhouses. There have been significant changes on the German mainland as a result of government support and initiatives for Small and Medium Enterprises (SMEs). SMEs are also referred to as ‘Mittlestands.’ For these businesses to run successfully, the government provides several perks and incentives.
In Germany, the government is supportive and provides training for all businesses to carry out all types of activities. SMEs in Germany are considered the backbone of the economy. Entrepreneurs and investors can Company formation in Germany because the economy is favorable for doing business. The German passport is regarded as one of the most powerful in the world. As a result, investors would want to consider registering a company in Germany.
Documents Required for Company Formation in Germany
The following documents are required for company registration in Germany:
- Application for registration
- Notarized articles of association (AOA)
- A document showing the management board structure
- A certificate showing that the share capital was deposited
- Visas of directors in case of foreign resident
- Registered office address of the business
- Information on the shareholders and directors
- Any other information as requested by the notary.
Company Formation Process in Germany for Non Residents
In order to register a company in Germany, you must follow the steps below:
-
Choose the Business Structure
In Germany, there are a number of business structures. The applicant must first choose an appropriate business structure. A typical applicant for a GmbH entity must have a minimum of EUR 25,000. However, there are other business structures in Germany that require less capital.
-
Company Name
The applicant must then choose a suitable company name in the next phase. The applicant must check the business registration to see if the company’s name has already been taken.
-
Objects of the Business
The next step would be for the applicant to search the commercial registry for the business’s objects. Such objects must be indicated specifically in the application.
-
Application to the German Chamber of Commerce
After registering the business’s objects, the applicant must check in with the German Chamber of Commerce to register the business’s name and objects. There is no cost involved in completing this step. The applicant must also check the notary for company registration.
-
Drafting Articles of Association
The applicant would then draft the company’s articles of association as the next step. The applicant can use either the standard template version or the customized version for this. Following that, the applicant would need to obtain the necessary documents for the notary.
-
Go to Notary
All parties involved would have to attend before the notary. The notary, on the other hand, must have the authority to carry out the procedures for company registration. In Germany, there are a variety of notaries. As a result, the concerned notary must certify that the corporation exists. Shareholders and managing directors, for example, must submit information. If the person is a managing director, double-check that they have the necessary passports and visas. Because the process would necessitate several entries into Germany, the individual would need either a resident permit or a visa.
-
Corporate Bank Account
The notary in Germany has different forms of jurisdiction. Some notaries are extremely picky when it comes to the bank. As a result, finding a bank that is on the list of accepted banks is critical. In order to complete the business registration process in Germany, the applicant will need to choose a suitable bank.
-
Deposit Capital in the Bank Account
After opening the bank account, the applicant must deposit the amount of capital required for the company formation process. The applicant can put the Stammkapital number for reference. After that, the applicant for German company registration will guarantee that the deposit receipt is given to the notary.
-
Payment to the Notary
The applicant would be responsible for paying the notary. You would also be responsible for paying the Handelsregister invoice. This is something that the applicant must do. If the notary has previously completed the step, this step is not required.
-
Notary Will Notify the Applicant Once the Company Is Registered
The notary will send a notification once the company has been registered.
-
Tax Implications
If you are a foreign company, then you would be required to pay domestic tax in Germany. In addition, for specified transactions, foreign tax may be due. You might seek the advice of a tax expert to avoid any complications.
-
Submission of Trade registration
The applicant must then submit the trade registration to the trade office. The trade registration is also called Gewerbeanmeldung. If the company is based in a city like Berlin, English can be employed as the main language.
-
Tax ID Number
The applicant would receive a tax ID from the tax office after filing the application. Such a condition must be met in accordance with the invoice’s specifications.
-
Secure Insurance
If the individual is a non-resident, it is important to attain insurance for both the business and the employees.
Conclusion
Our experts at Vakilsearch will assist you with the formation of any corporate legal structure, whether you choose to incorporate your company in person at a notary or by drafting the appropriate powers of attorney remotely.
Also, Read
