Company formation in Germany
Company formation in Germany - GmbH formation in Germany
| Company Type: | Limited Liability Company (GmbH) |
| Name: | Can be freely chosen with certain restrictions; the name must be authorised by the Chamber of Industry and Commerce, and must end in "GmbH". |
| Capital: | Minimum capital of 25,000 €, one half of which must be paid in (at least 12,500 €). The mininum amount of capital is due to be reduced to 1 € in 2008, this type of companies called UG. |
| Shares: | No shares, only company stakes. |
| Shares Index: | Partners are entered in the commercial register. |
| Registered Agent Requirement: | No |
| Registered Headquarters: | Yes |
| Entry in the Public Register: | Yes, commercial register. |
| Shareholders: | Partners: no minimum (one-man company is allowed), nationals or foreigners, natural or legal persons. |
| Directors: | At least 1 chief executive |
| Incorporation Period: | 2-6 weeks (shelf companies are common) |
| Disclosure of Beneficial Owner: | No |
| Disclosure of Shareholders: | All partners must be entered in the commercial register. Anonymity can be safeguarded by using nominees. |
| Disclosure of Directors: | Yes |
| Trading Restrictions: | No; however certain activities require authorisation. |
| Taxation: | Turnover tax: 19% 25% corporate tax Capital gains tax Trade tax varies according to municipality Solidarity surcharge |
| State Tax Charges: | No |
| Double Taxation Agreements: | Yes |
| Financial Statements: | Yes |
| Tax Returns: | Yes |
| Accounting: | Yes |
| Annual Reports: | Yes |
| Formation Costs: | 1 199 € (minimum capital 25 000 € or 1€) |
| Annual Running Costs: | 1 499 € (minimum) - 5 700 € (full service) |
Company formation in Germany - AG formation in Germany
| Company Type: | Public Limited Company (AG) |
| Name: | Can be freely chosen with certain restrictions; the name must be authorised by the Chamber of Industry and Commerce, and must end in "AG". |
| Capital: | Minimum capital of 50 000 €, one quarter of which must be paid in. |
| Shares: | Bearer or registered shares. |
| Shares Index: | Yes, for registered shares. |
| Registered Agent Requirement: | No |
| Registered Headquarters: | Yes |
| Entry in the Public Register: | Yes, commercial register. |
| Shareholders: | 1 shareholder (so-called small public limited company) or several shareholders, be they foreign, natural or legal persons. |
| Directors: | At least 1 management board member and, additionally, at least 3 supervisory board members. |
| Incorporation Period: | 2-6 weeks (shelf companies are common) |
| Disclosure of Beneficial Owner: | No |
| Disclosure of Shareholders: | Founding shareholders are entered in the commercial register. Anonymity can be safeguarded by using nominees. |
| Disclosure of Directors: | Yes |
| Trading Restrictions: | No; however certain activities require authorisation. |
| Taxation: | Turnover tax: 19 % 25% corporate tax Capital gains tax Trade tax varies according to municipality Solidarity surcharge |
| State Tax Charges: | No |
| Double Taxation Agreements: | Yes |
| Financial Statements: | Yes |
| Tax Returns: | Yes |
| Accounting: | Yes |
| Annual Reports: | Yes |
| Formation Costs: | 2 500 € (minimum capital 50 000 €) 7 800 € shelf company (minimum capital 50 000 €) |
| Annual Running Costs: | 1499 € (minimum) - 9 900 € (full service) |
General Information about country
| Area: | 357 021 sq km |
| Capital: | Berlin |
| GDP per capita: | 26 388 € |
| Unemployment Rate: | 11,6% |
| Population: | 82 501 000 |
| Language: | German |
| Currency: | Euro |
| Rate of Inflation: | 1,1% |
| Political Risks: | None |
| Communications: | Good |
| Residence Permit: | Not a problem for EU citizens. All others require a visa. |
| Legal System: | German Civil Code and German Commercial Code of January 1, 1900 (based on Roman Law) |
| Exchange Control: | No |
| Patent Law: | Yes |
| Tax Information Exchange Agreement: | Yes |