Introduction to Company Incorporation Germany

If you are a foreign investor and wish to consider German company formation, you have a broad spectrum of options. You could take a cautious view and start with a one-person sales office based within a serviced office (we can help you with this). If it doesn't work out, you can easily withdraw without having invested very much capital. Or you could have the courage of your convictions, and set up business in Germany in a manner that makes it clear that you really mean business. Our German company formation service makes it easy for you to establish whatever kind of company you want, from a Sole Trader through to a Partnership or Corporation.

What are the main types of German company formation?

There are four main forms of German Company Registration:

  • Limited Liability Corporation (GmbH)
  • Stock Corporation (AG)
  • Partnerships
  • Sole Proprietor

What are the main features of a Limited Liability Corporation (GmbH)?

A GmbH is the most common form of company in GermanyThe minimum share capital is €25,000 It has a simple structure designed for private companies onlyThe minimum number of shareholders is one

What are the main features of a Stock Corporation (AG)?

An AG is the standard corporate form for major public companiesThe minimum share capital for an AG is €50,000The minimum number of shareholders is oneIt is subject to heavy regulation as a listed company

What are the main features of a Partnership?

Available either as a General (oHG) or Limited (KG) PartnershipForeign investors tend to prefer limited-liability KG PartnershipsMinimum of two partners, one of which can be a GmbH companyWidely used in for small and family-owned businesses

What are the main features of a Sole Proprietor company?

The simplest and least-regulated form of business entityRegistration required with the commercial register and local trade officeSole Trader has unlimited liability for all liabilities and debtsProfits are subject to German Income Tax at individual rates

 

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