Incorporate your business in Germany Online

Company Incorporation in Germany - An Overview

If someone wants to start a company in the European continent than Germany ought to be the number one choice. Location of Germany is centric in the European continent which helps in providing a vast opportunity for networking and business development across the continent. Every European country is easily accessible in a few hours from Germany through various modes of transportation. Thus, making Germany the favorite choice to startup your business.

Germany is one of the most prosperous countries in the European Union. It is also conducive for new businesses for a number of reasons. High education standards, skilled and competent workforce, efficient finance and banking system, low corruption levels, solid infrastructure and technological innovation are just a few to mention in this regard.

To start a business in Germany, Company registration is mandatory. The different types of business entities in Germany are:

A sole proprietorship in Germany is very easy to incorporate however, it puts the unlimited liability on the owner and profits are subject to individual income tax rates.

A partnership is an arrangement in which two or people come together to work on mutual understanding...It requires minimum of 2 partners.

It’s a fairly simple task for foreigners to set up a branch of the company in Germany. It requires registration with local trade office and commercial registration. The parent company of concerned branch in Germany looks after the legal and tax-related matters.

Why set up a business in Germany- Benefits

Corruption rates are also very low in Germany.

• The interest rate on business loans is very low.
• The government of Germany provides a lot of support to the business owners for training and recruitment.
• Government banks work as public guarantors.
• Incentives programs like grants and interest-reduced loans are extremely helpful for new smaller startups.

What is the Process to Register Company in Germany Online?

The first step of company registration in Germany usually starts with the drafting of the AoA ( Article of Association) and compilation of other accompanying documents. These include a copy of passport, specimen signature, bank account documents, other special forms from the company incorporation office, proof of hiring a local accountant and so on. All these documents need to be notarized by an authorized notary officer in Germany.

In Germany, the minimum share capital required for incorporating a private limited company is 25000 EUR. However, you can also start with the minimum share capital of even one Euro. In this case, you will be termed as a mini GMBH (UG) company. Once you earn a profit of 25000 EUR, you will be elevated to the GMBH category without incurring any additional cost.

To incorporate a joint stock company in Germany one would need certain documents such as the draft of the Article of Association (AOA) and other documents such as specimen of signatures, passport copies, company registration form, a local bank account, hiring a local accountant, etc. The documents once complete should be notarized by public notary officer in Germany.

The minimum share capital required for starting a Joint Stock Company in Germany is 50000 EUR. In this type of company, the partners will own limited liability and the company shares can be registered freely in the stock market. A supervisory board consisting of at least 3 members will check the performance of the company management on a regular basis. Also, a statutory auditor will be appointed to audit the AG accounts.

Steps for Register Company in Germany Online

• The company needs to file an application with the local chamber of the Department of Industry & Commerce for verification of its company name.
• Draft of the Articles of Association - Once the company name is approved you need to prepare a draft of the Articles of Association of the company and get it notarized by the public notary officer in Germany.
• After this, it is necessary to open a local bank account in Germany.
• The application for registration, notarized AOA, details of management board structure and share capital have to be submitted to the German Commercial Register. All these documents can also be submitted in electronic form.
• Next, it should apply to the Business Standards Office of the chamber of the Department of Industry & Commerce or the trade license. The company also needs to obtain an 8-digit operating number from the labour office. This number will further be reported as the Social Security Number (SSN) of the company. Then, the company needs to approach the appropriate tax department for corporate tax registration.
• After all the above mentioned processes are completed, the company can officially start business operations in Germany.

Why Vakilsearch

At Vakilsearch, we can deliver all your documentation requirements in just four working days. And if you're not totally satisfied, we'll take another couple of days to work on the modifications you need. All at the lowest price, both online and offline.

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.