Company Registration in Germany

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Company registration in Germany

If someone wishes to set up a company in European continent then Germany ought to be on number one on the wishlist. Location of Germany is centric in the European continent that provides a vast opportunity for networking and business development. Every European country is easily accessible in hours from Germany either by car, train or flight routes, and services. Company registration in Germany is very essential.

A skilled workforce, education system, an efficient banking system, solid infrastructure, highly qualified labor power, low level of corruption and high level of innovation makes German, one of the most prosperous countries in the Eurozone.

To operate a company, Company registration in Germany is mandatory. However, Company Registration in Germany is a difficult and rigid task but however, it is an easy and straightforward process if done with proper caution, patience, and knowledge.

Benefits of company registration in Germany

Business Structures in Germany

The different types of business entities in Germany are:

1. Sole Proprietorship :

sole proprietorship is easy to form but however, it has unlimited liability on the owner and profits are subject to Individual Income tax rates.

2. Partnership (Includes Limited Liability Partnership)

A partnership is an arrangement of two or more people decides to work together with mutual understanding. It requires minimum 2 partners. Limited liability partnership and unlimited liability partnership are two types of partnership.

3. Company

It’s an easy task for foreigners to establish a branch of the company in Germany. It requires registration with local trade office and the commercial registration. The parent company of concerned branch in Germany looks after the legal and tax matters.

Company registration in Germany

Private Limited Liability Company (GMBH)

The first step for registration of a company is to draft the Article of Association (AOA) and compile other documents which include a specimen of signatures, passport copies, special forms from company registration office, opening a bank account, hiring a local accountant etc. is properly prepared and duly notarized by the public notary officer in Germany.

The minimum share capital for incorporation of a Private Limited Company is 25000EUR. Transfer of shares to the public or registration at the stock market is not allowed for GMBH. Management decision of the GMBH is assured by the general meeting of the shareholders and daily decision to be taken by company’s director.

Even mini GMBH(UG) company can start with a minimum share capital of one euro. Once the company earns the profit of 25000 EUR it will automatically become a GMBH company at no additional cost.

Joint Stock Company (AG)

The first step before incorporation of a company is drafting of the Article of Association (AOA) and the submission of other documents which includes a specimen of signatures, passport copies, special forms from company registration office, opening a bank account, hiring a local accountant etc. is properly prepared and duly notarized by the public notary officer in Germany.

The minimum share capital of 50000 EUR needed to start a Joint Stock Company. Shares of the AG can freely register to the stock market and partners will have limited liability. The management board will check the management of the company regularly by a supervisory board which is formed by at least three members. A statutory auditor will check the accounts of the AG.

Steps for Company Registration in Germany

Apply for Verification of Company Name at Local Chamber of Industry and Commerce.

Draft the Company’s AOA and notarized by the public notary officer in Germany.

Open a Bank Account.

Submit required documents to the German Commercial Register which includes an application for registration, notarized AOA, a document showing management board structure, a certificate showing that share capital. All these documents can be either send in an electronic form.

Next is to apply for a trading license from the local office of Business Standards at the Chamber of Industry and Commerce and the Labour Office. Labour office issues an eight-digit operating number which must be reported as social security.

Company then needs to apply to tax office regarding the newly formed business entity, required for registration of corporate taxes and VAT.

After all this, officially the company can start the business in Germany.

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Follow all the rules and regulations properly before company registration in Germany. However, company registration in Germany is a necessary process. All the procedures that involve an official signature must be performed in front of a public notary in Germany.

Get your company registration in germany today through LEGALRAASTA.

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