Germany flag

GERMANY


Located in the heart of Europe, Germany is a leading member of the European Union in terms of economy, politics and military defense. The country is the industrial locomotive of Europe and one of the world's heaviest economies. In the global ranking, the European country is in fourth place after the USA, China and Japan. The traditional leading sectors of the German economy are the automotive industry, chemicals and engineering, while business and services are stable and globally respected. In recent years, Germany has pioneered digital innovation and Industrie 4.0, while more recent trends are green technologies and the digital economy. First-class infrastructure, a high level of education and a skilled workforce contribute to making Germany a global industrial leader and a renowned nation for investors and entrepreneurs. It should be noted that the government encourages local and foreign investment through attractive incentives and a favorable tax framework.


Categories of companies in Germany


Every investor has the right to establish a company in Germany through a corporation, partnership or branch. Corporations are the most suitable options in many cases. Although the company registration procedures are simple, it is recommended to seek expert advice. German law covers four main categories of corporations:

  • Gesellschaft mit beschränkter Haftung (GmbH) (limited liability company) – This is the most common legal form of a corporation. The minimum share capital is 25,000 Euro and the shareholders are not responsible for any debts of the company.
  • Aktiengesellschaft (AG) (Stock Company) – The minimum share capital is 50,000 Euro, which may or may not be listed on the stock exchanges. AG companies enjoy a strong reputation in the market, but require complex structures and administrative duties.
  • Kommanditgesellschaft auf Aktien (KGaA) (Partnership Limited by Shares) – This is a joint stock company (AG) where the general partners are personally liable. In short, as an AG, the company can build a large equity stake; as a partnership creates personal involvement and connections between the partners and the corporation.
  • Offene Handelsgesellschaft (OHG) (General Partnership) – There is a partnership agreement (Gesellschaftsvertrag) which obliges the shareholders to be proactively involved in the management of the business. Unlike GmbH and AG, partners have unlimited liability.


    • Other legal forms are available, combining different characteristics of the main categories. One category, Mini GmbH, deserves special mention. This is a simplified version of the GmbH class, where companies are allowed to start their business with a capital of €1.00.


    How to register a company in Germany


    The first step to start a company in Germany involves choosing a legal form. Most investors choose limited liability categories, usually Gmnh or Mini GmbH. Next, the entrepreneurs must choose the name and purpose of the corporation. In order for the company to become official and legal, articles of association and registration declarations, as well as notarization, are required. Notably, the German government supports foreign investment through a series of incentives aimed at facilitating access to all sectors and financial programs to amortize initial costs. Incentives include tax breaks and attractive loans to invest in research.


    The tax system in Germany


    German corporate taxation is competitive and favorable to both domestic and foreign entrepreneurs, with the average tax contribution hovering around 30%. Companies are burdened by their global profits. However, it is important to note that Germany has reached bilateral investment agreements (BITs) and double taxation agreements with around 90 countries. Generally, German corporations are subject to two main classes of taxes:

  • Corporate tax (Körperschaftsteuer) charges 15% of income; however, a solidarity surcharge of 5.5% raises the rate to 15.825%.
  • Trade tax (Gewerbesteuer) is the result of a flat rate of 3.5% and a municipal quotation. The latter varies depending on the location of the company; usually the sales tax is higher in urban than in rural environment.


    • CREATE A COMPANY


  • Check and reserve a company name
  • Company registration (GMBH), including state fees
  • Payment of state fees in the Industrie und Handelskammer
  • Legal address for 1 year
  • Registration in the Handelsregister
  • Obtain a tax number Steuernummer
  • Set of statutory documents of the company in electronic form
  • Opening an account in: Deutsche Bank, Commerzbank
  • Set of statutory documents of the company in electronic form
  • Contribution to the authorized capital of the company
  • VAT registration
  • Local Director for one (1) year
  • Obtaining a Foreign Investment Permit
  • Obtaining a residence permit
  • Free consultation
  • Help with online trading and opening an account at viva.com for online trading
  • Accounting services - 12 months
  • Annual renewal (payable from the second year)

    • *Within 30 days


    IMPORTANT! We can provide you with the initial share capital (if the amount is over EUR 5,000) for the registration of your company in the form of a loan from our company. Please, if you are interested, make an inquiry to us.


    What is the procedure!

    1. You submit a request for company registration using the request form.

    2. We check if the registration company name is free and eligible for registration.

    3. Choose a bank that suits your company's needs from a list of Smart Startup UK partner banks provided.

    4. We send you a proforma payment invoice to pay to our bank account + the initial capital amount of your company.

    5. You receive all necessary company documents for verification.

    6. You receive details of your newly opened bank account.

    7. In the specified period (for Germany it is 30 days), you receive all the services included in the package.

    8. You can manage through our platform all the services included in the package, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticketing system for our customers through which we process your every support request.


    All services like management, accounting, request to open bank accounts, licensing, filing tax returns, paying taxes and more are done through your account on our platform, it makes it easy managing your business!