Company Formation in Germany

Since 2014, we have helped clients establish companies in Germany.
But our clients receive much more.

More than company registration

We coordinate the entire company formation process in Germany, not just the registration. Our support continues until the company is fully prepared to begin operations within the agreed scope.

Depending on the client’s situation, we help choose the appropriate legal form, arrange accounting and tax advisory services, coordinate the notarial and banking procedures, and assist with the mandatory registrations required after incorporation. The exact scope of our support is agreed in advance.

Our clients gain a clear understanding of the investment required, the expected timeline and the steps involved in beginning business operations in Germany. Based in Berlin, we provide company formation services throughout Germany and have supported incorporations in Hamburg, Munich, Frankfurt am Main, Cologne, Düsseldorf, Leipzig, Dresden and many other cities.

Company Formation in Germany: How We Work

Our company formation support covers the entire process — from initial planning and incorporation to the post-incorporation procedures required to prepare the company for business operations.

1. Pre-incorporation services

1. Company name availability check and review of proposed business activities
2. Liaising with the Chamber of Industry and Commerce to obtain a preliminary assessment of the proposed company name and corporate purpose (if required)
3. Preparation of the required powers of attorney (if required)
4. Review and finalisation of the incorporation documents with the client
5. Provision of a registered business address or assistance in finding one
6. Arranging the signing of the incorporation documents before a notary
7. Assistance with opening a corporate bank account

2. Support services

1. Interpreter assistance at the notary’s office
2. Interpreter assistance at the bank when opening a corporate bank account
3. Assistance with signing a service agreement with a tax adviser
4. Assistance with signing a lease agreement

3. Post-incorporation services

Assistance with payment of the court registration fee
Business registration with the Trade Office (Gewerbeanmeldung)
Mandatory registrations with the tax authorities and other public authorities
Trademark registration
Preparation of the opening balance sheet (by our partner tax adviser)
Obtaining the tax numbers required for business operations
Registration with the responsible statutory accident insurance institution (Berufsgenossenschaft)

FAQ

Common Questions About Company Formation in Germany

Yes. German law allows a foreign national to serve as the managing director of a German GmbH or UG. Section 6 of the Act on Limited Liability Companies (GmbHG) does not require the managing director to be a German national or to reside in Germany. However, a non-resident managing director may face practical difficulties when opening a corporate bank account.

No. German law does not require a managing director to speak German. In practice, however, the managing director must be able to communicate with banks, tax advisers and public authorities and to deal with German-language documents. If the managing director speaks English, opening and operating a corporate bank account is usually possible, although some banks may require a German-speaking contact person or may decline the application.

The most common legal forms for foreign entrepreneurs are the GmbH and the UG (haftungsbeschränkt).

For example, a UG can be established with a lower amount of share capital and can therefore reduce the initial cost of setting up the company. However, it must allocate part of its annual profit to a statutory reserve. Once its share capital has been increased to at least €25,000, it can become a GmbH.

By contrast, a GmbH generally has a stronger market reputation and is often more suitable when the company plans to work with established business partners, attract investment or apply for a residence permit for self-employment. In residence permit proceedings, the legal form alone is not decisive, but the amount of capital invested and the secured financing of the business are taken into account.

For larger businesses or more complex ownership and financing structures, an AG may be more appropriate. Alternatively, an existing foreign company may operate in Germany through a branch instead of establishing a separate German company.

The appropriate structure depends on the available capital, the planned scale of the business, the number of shareholders, financing requirements and the company’s long-term objectives.

A UG (haftungsbeschränkt) can be established with share capital starting from €1. However, the entire share capital must be paid in before the company can be registered, and contributions in kind are not permitted.
The minimum share capital is €25,000 for a GmbH. In most cases, at least €12,500 must be paid in before registration, with the remaining amount payable later.
The minimum share capital for an AG is €50,000.

The main taxes payable by corporations in Germany are corporate income tax, the solidarity surcharge and municipal trade tax. Corporate income tax is currently 15%, and the solidarity surcharge amounts to 5.5% of the corporate income tax, resulting in a combined rate of 15.825%.
Trade tax depends on the municipality in which the company operates and is usually approximately 10–20%. In addition, value added tax generally applies at a rate of 19%, although reduced rates and exemptions may apply to certain goods and services.

The cost of forming a company in Germany depends on its legal form, the amount of share capital, the number of shareholders and the scope of professional support required.

For a UG with share capital of up to €5,000, notary and registration costs start at approximately €550. For a GmbH with share capital of €25,000, these costs are usually around €1,000–€1,500.

Professional support with the company formation process usually costs between €1,100 and €2,000, depending on the scope of services. A VAT rate of 19% applies to notary services and professional support. VAT does not apply to registration fees.

No. Establishing or owning a company in Germany does not automatically entitle a foreign national to a residence permit.

Non-EU nationals may apply for a residence permit for self-employment under Section 21 of the Residence Act (AufenthG).

The immigration authority assesses the application based on the economic or regional interest in the proposed business, its expected positive impact on the economy and the availability of sufficient financing. It may also consider the viability of the business concept, the applicant’s entrepreneurial experience, the planned investment and the expected effects on employment and innovation.

Accordingly, the application normally includes a business plan, evidence of financing and the available company formation documents.

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