Company formation in Germany

Germany is renowned for its robust economy, strategic location, and efficient company formation procedures, making it an attractive destination for entrepreneurs worldwide. The process of establishing a company in Germany is streamlined and transparent, with a well-defined legal framework. One key advantage is the country’s stable and thriving economy, offering a strong market for various industries. Germany’s central location within Europe provides easy access to major markets, fostering international business relationships. The legal system promotes investor protection, ensuring a secure environment for businesses to operate.

Furthermore, Germany’s commitment to innovation and technology, along with its highly skilled workforce, enhances the competitiveness of companies established there. The country’s infrastructure, education system, and research facilities contribute to a favourable business ecosystem. Tax incentives and support programs for startups further sweeten the deal for entrepreneurs. Germany’s commitment to sustainability and green initiatives aligns with the global trend towards responsible business practices, attracting environmentally conscious businesses.

Germany offers a well-established and efficient company formation process, a stable and prosperous economy, strategic geographical advantages, a skilled workforce, and favourable business incentives, making it a highly beneficial choice for entrepreneurs looking to establish and grow their businesses.

Company registration by visit 5,000 EUR
Opening a company in Germany by a power of attorney 6,000 EUR

Open business in Germany

Corporate services in Germany


Prestige and worldwide recognition of the jurisdiction

Transparent and reliable legal system

Germany is the 4th most innovative country in the world

The German market is more than 82 million people

 Germany Before diving into the incorporation process, it’s crucial to select the most suitable legal structure for the business. Germany provides various options, including Gesellschaft mit beschränkter Haftung (GmbH) for limited liability companies, Aktiengesellschaft (AG) for stock corporations, and others. The choice depends on factors like the size of the business, capital requirements, and liability preferences.

The next step involves choosing and reserving a unique company name. The selected name must comply with German naming conventions and be distinguishable from existing businesses. A name reservation ensures that the chosen name is available for registration.

Companies in Germany must prepare articles of association (Gesellschaftsvertrag), outlining the company’s purpose, structure, and internal regulations. These articles serve as the foundation for the company’s legal framework and are submitted during the registration process.

To facilitate business operations, a German bank account is essential. It is advisable to establish a relationship with a local bank early in the process, as the bank will issue a confirmation required for company registration.

Certain documents, such as the articles of association and the appointment of managing directors, may require notarization. Notarization adds a legal stamp to the documents, enhancing their authenticity and compliance with German law.

The Commercial Register (Handelsregister) is a central database containing information about businesses operating in Germany. Registration involves submitting the required documents to the local court, including the articles of association, proof of name reservation, and the bank confirmation.

For the official registration process, a notary must be appointed. The notary assists in verifying the identity of the company founders, notarizing required documents, and overseeing the registration process with the Commercial Register.

Following registration with the Commercial Register, the company must obtain a tax number from the tax office (Finanzamt). This is crucial for fulfilling tax obligations, including corporate income tax and value-added tax (VAT).

If the company plans to hire employees, registering with the social security system (Sozialversicherung) is necessary. This ensures compliance with German employment regulations.

Depending on the industry, some businesses may require specific licenses or permits. It’s essential to identify and obtain the necessary licenses from relevant authorities.

Germany’s robust economy and stable business environment make it an attractive destination for investors.

By incorporating in Germany, businesses gain access to the vast European Union (EU) market, enhancing opportunities for expansion.

Germany is renowned for its innovation and technological advancements, providing a fertile ground for businesses in various sectors.

The country boasts a highly skilled and educated workforce, contributing to business success.

Germany’s legal system is characterized by transparency and predictability, providing a secure foundation for business operations.

In conclusion, incorporating a company in Germany is a strategic move for those seeking to establish a foothold in the heart of Europe. By navigating the regulatory landscape with careful planning and adherence to legal requirements, businesses can position themselves for success in one of the world’s most influential economies.

Investors looking to establish a presence in Germany can choose from various legal structures, including corporations, partnerships, or branch offices. While the company registration process is generally straightforward, seeking professional guidance is advisable. German law recognizes four primary categories of corporations:

Gesellschaft mit beschränkter Haftung (GmbH) (Limited Liability Company):

This is the most common corporate form, requiring a minimum share capital of €25,000.

Shareholders are not personally liable for the company’s potential debts.

Aktiengesellschaft (AG) (Joint Stock Corporation):

AGs require a minimum share capital of €50,000, which may or may not be listed on stock exchanges.

While AGs enjoy a strong market reputation, they involve complex structures and administrative responsibilities.

Kommanditgesellschaft auf Aktien (KGaA) (Partnership Limited by Shares):

This is a stock corporation (AG) where general partners bear individual liability.

Combining aspects of both AG and partnership structures, KGaA allows for significant capital shares while fostering personal involvement and bonds between partners and the corporation.

Offene Handelsgesellschaft (OHG) (General Partnership):

OHG operates under a partnership agreement (Gesellschaftsvertrag), requiring shareholders to actively manage the business.

Unlike GmbH and AG, partners in OHG face unlimited liability.

Additional legal forms exist, blending characteristics from the main categories. Notably, the “Mini GmbH” deserves special mention. It represents a streamlined version of the GmbH, enabling companies to initiate operations with a capital as low as €1,00.

The corporate taxation framework in Germany is competitive and favorable for both local and foreign entrepreneurs, with an average tax rate hovering around 30%. Companies are liable for taxes on their worldwide profits. Notably, Germany has established bilateral investment treaties (BITs) and double taxation agreements with approximately 90 countries. Generally, German-resident corporations encounter two primary types of taxes:

This tax imposes a 15% burden on incomes, with an additional solidarity surcharge of 5.5%, bringing the effective rate to 15.825%.

Comprising a fixed rate of 3.5% and a municipal quotient, the trade tax varies based on the company’s location. Typically, urban settings have a higher trade tax than rural environments.

In response to the ongoing COVID-19 pandemic, the German government has implemented temporary tax measures to address the challenging situation. These interventions aim to enhance corporate liquidity and include measures such as a reduction in the value-added tax and an increase in the maximum loss carryback volume for 2020 and 2021 losses.

Registering a company in Germany provides numerous advantages, including a robust and stable economy, a specialized workforce, and membership in the European Union. Regulated United Europe serves as a reliable partner to help navigate the selection of the most suitable business options. Determining the appropriate corporate structure, managing the company registration process, and calculating corporate and trade taxes can be complex for those unfamiliar with the nuances. At Regulated United Europe, a team of experts is available to guide the process of opening a company in Germany and provide valuable advisory services










Berlin 84,270,625 EUR $48,398

Key Points to Note:

  1. The advantages of conducting business in Germany encompass an innovative environment, English proficiency, a robust startup culture, straightforward communication, and excellent infrastructure.
  2. Challenges associated with business operations in Germany include intricate business establishment procedures, complex tax arrangements, bureaucratic hurdles, an unfamiliar cultural environment, and extensive employment protections.
  3. Global Professional Employer Organizations (Global PEOs) can assist in expanding businesses into Germany or hiring workers there.

Germany hosts Europe’s largest economy, ranking fourth globally in 2020, following the United States, Japan, and China, in terms of market size. This vast and diverse economy is supported by well-developed infrastructure, a skilled and educated workforce, a positive social environment, a strong Human Development Index (HDI), and a rich history of world-class research and innovation.

With Brexit fully implemented, Germany is likely to become an even more sought-after European business location.

However, amid these positive aspects, there are challenges for business owners aiming to enter the German market. Germany, being discerning, has intricate bureaucratic procedures and a legislative environment that make it one of the most challenging countries for non-EU businesses to establish operations in.

Benefits of Engaging in Business in Germany

When contemplating the advantages of conducting business in Germany, the list could go on endlessly. Here are a few standout benefits:

Commitment to Innovation. Germany is globally recognized as one of the most innovative countries, with a rich history of leveraging science and technology for economic benefit. Government support, including funding and incentives, contributes to fostering innovations, with a particular focus on emerging technologies like artificial intelligence.

Excellent English Proficiency. Germans exhibit excellent proficiency in both spoken and written English. This linguistic prowess facilitates effective communication, reducing cross-cultural risks of ambiguity and misunderstandings. While English skills are robust, making an effort to communicate in the local language is appreciated, reflecting former Chancellor Willy Brandt’s sentiment, “If I’m selling to you, I speak your language. If I’m buying, dann müssen Sie Deutsch sprechen!”

Strong Start-Up Business Culture. Germany boasts a dynamic start-up scene, with notable activity in cities like Berlin, Munich, and Hamburg. Berlin, in particular, has emerged as a leading tech hub in Europe over the past decade, showcasing diverse creativity and innovation in the tech sector.

Direct Style of Communication. German business professionals are known for their direct and efficient communication style. While this may appear straightforward, it reflects German efficiency, with workers focused, committed, and professional. This approach ensures dealings with highly skilled individuals committed to meeting objectives and deadlines.

Excellent Infrastructure. Germany’s infrastructure is globally regarded as top-notch. The country offers outstanding transportation and logistics, with a vast network of airports, heliports, railways, and well-maintained roadways. Access to high-speed Internet and advanced telephone systems positions Germany as an ideal location for international remote work, aligning with the digital transformation and the rise of remote working.

Significant Regulatory Oversight. As previously mentioned, every business entity operating in Germany is required to register with the pertinent local trade registry corresponding to its primary place of business. Unlike a central registry, there are distinct registrations for other towns or cities where the business holds significant interests, such as a secondary production line or regional headquarters.

Although the central government’s code of conduct for businesses is recommended rather than legally binding, companies deviating from it must disclose any such deviations when engaging in business transactions.

Beyond the extensive registration requirements and governmental corporate oversight, German laws governing consumer protection, employee rights, and product liability are both comprehensive and intricate. Often surpassing equivalent EU laws, German regulations, such as those concerning Works Councils, mandatory employee representative bodies, can pose challenges for businesses unfamiliar with the local landscape, leading to potential breaches of compliance requirements.

Robust Employment Protections. In the realm of regulatory oversight, Germany boasts some of the most robust employee protections globally. With a relatively high minimum wage and stringent rules surrounding employee dismissals, holiday pay, and sick leave, German employment regulations are stringent.

Unlike many countries with the existence of “zero-hours contracts,” German law mandates that all employees, whether in full-time, part-time, seasonal, temporary, or permanent positions, must be engaged under an employment contract. These contracts are typically detailed, including provisions for holidays and benefits. For instance, German employees are safeguarded from working shifts exceeding eight hours in a single day. If an employee chooses to work longer, they must receive compensatory time off during each four-week period to ensure the average daily working hours do not surpass the eight-hour limit.

How a PEO Can Facilitate Your Expansion Goals

Despite the challenges of entering the German market, companies can navigate them effectively with the right approach. For those finding it challenging to independently expand into Germany, establish a legal entity, and comply with the intricate regulatory framework, partnering with a professional employer organization (PEO) is a viable option.

PEOs in Germany often operate through employee leasing, holding an Arbeitnehmerüberlassung license, commonly known as an ‘AUG license.’

What is a PEO?

A PEO, or professional employer organization, provides co-employment or employer of record services to businesses aiming to expand into international markets. PEOs with global coverage, specifically those covering Europe, are known as global PEOs or Europe PEOs.

Leveraging their local expertise, PEOs handle human resources and administrative responsibilities associated with managing employees in different countries. This alleviates concerns for businesses expanding overseas, eliminating the need to establish a legal entity, ensuring compliance with local laws, and navigating the intricacies of local business culture—tasks effectively managed by the PEO on behalf of the business.

As a co-employer or employer of record, the PEO assumes responsibilities such as:

  1. Managing payroll to ensure timely and full payment to employees.
  2. Withholding and timely remittance of relevant payroll and income taxes.
  3. Making necessary deductions and contributions, such as healthcare or pension.
  4. Assisting in hiring local experts.
  5. Utilizing connections to identify top talent.
  6. Ensuring compliance with local laws, including minimum wage and paid leave.
  7. Drafting employment contracts and related paperwork.

What types of companies exist in Germany?

In Germany, there are several types of companies that can be selected by entrepreneurs, depending on their business goals, the size of the enterprise, the management structure and the required level of legal responsibility. Choosing the right form of company is crucial for successful business management, taxation, and determining relationships with partners and investors. Let’s look at the main types of companies in Germany.

  1. Individual entrepreneurship (Einzelunternehmen)

This is the simplest and most common form of doing business in Germany, ideal for solo entrepreneurs. Individual entrepreneurs fully control their business and bear unlimited personal responsibility for its obligations. Registering such a form of business requires minimal effort and expense.

  1. Limited Liability Company (GmbH)

GmbH is the most popular form of limited liability company in Germany. It is suitable for both small and medium-sized businesses. The founders are not personally liable for the company’s obligations; the risk is limited to their contribution to the authorized capital. The minimum authorized capital is 25,000 euros.

  1. Joint Stock Company (AG)

AG is suitable for large companies with a large number of shareholders and plans to enter the stock exchange listing. Shareholders have a limited liability equal to the size of their deposits. An AG establishment requires a minimum authorized capital of EUR 50,000.

  1. Limited Company (KG)

KG is a type of commercial partnership in which there is at least one full partner (Complementär) with unlimited liability, and one or more partners (Kommanditisten) whose liability is limited to their contribution to the company’s capital. This form is suitable for family businesses and is often used for risk management.

  1. Limited Liability Company (GmbH & Co. KG)

This is a special form of limited partnership, where the full partner is a GmbH, which allows limiting the liability of the founders. This form is popular among medium-sized businesses due to its flexible management and limited liability.

  1. Open Trade Society (OHG)

In OHG, all partners are fully and severally liable for the company’s obligations. This form is preferred for partnerships where participants want to do business together and are willing to fully share risks and profits.

  1. Registered partnership (e. k.)

e. K. (eingetragener Kaufmann) is a status for individual entrepreneurs that emphasizes their registration in the commercial register. This adds additional creditworthiness and professionalism to the business.


Choosing the right form of company in Germany depends on many factors, including the size of the business, plans for its development, financial capabilities and risk tolerance. Each type of company has its own advantages and disadvantages, as well as management, taxation and reporting requirements. Therefore, before making a decision, it is recommended to conduct a thorough analysis and, if necessary, consult with a lawyer or financial adviser.

 What is the size of the company’s authorized capital in Germany?

The size of the authorized capital of a company in Germany depends on the form of legal entity under which the company is registered. The authorized capital plays a key role in the foundation of a company, as it represents the sum of resources allocated to start operations. In this article, we will look at the share capital requirements for various forms of companies in Germany.

Limited Liability Company (GmbH)

GmbH (Gesellschaft mit beschränkter Haftung) is the most common form of business in Germany. The establishment of a GmbH requires a minimum authorized capital of 25,000 euros. When registering a company, you must pay at least 12,500 euros, which is 50% of the total minimum authorized capital. The remaining part can be paid later, but the founders remain jointly and severally responsible for the full amount of the authorized capital to creditors.

Joint Stock Company (AG)

To establish a joint-stock company (Aktiengesellschaft, AG), a minimum authorized capital of EUR 50,000 is required. This form of company is suitable for large businesses and businesses planning a public offering of shares. Shareholders have a limited liability equal to the value of their shares in the authorized capital.

Limited Company on Shares (KGaA)

KGaA (Kommanditgesellschaft auf Aktien) is a hybrid form that combines elements of a joint-stock company and a limited company. KGaA also requires a minimum authorized capital of 50,000 euros, similar to a joint-stock company.

Limited Liability Company (GmbH & Co. KG)

In the case of a limited liability partnership (GmbH & Co. KG), where the GmbH acts as a full partner, the requirements for the authorized capital are determined by the rules for the GmbH, i.e. a minimum of 25,000 euros is required. For KG itself, there are no specific requirements for the authorized capital, since the responsibility of partners depends on their contributions.

Unternemensgesellschaft (UG)

UG (haftungsbeschränkt), known as “mini-GmbH”, offers entrepreneurs the opportunity to establish a limited liability company with a much smaller share capital. The minimum deposit is only 1 euro. However, UG is required to set aside a portion of its profits to the reserve fund until the full authorized capital of the GmbH is reached in the amount of EUR 25,000.


The choice of the legal entity form and the appropriate amount of authorized capital are important decisions when registering a company in Germany. The authorized capital not only provides the financial basis for starting a business, but also serves to protect the interests of creditors. It is important to keep in mind that in addition to the authorized capital, other factors such as taxation, reporting requirements and management structure should be considered when choosing the appropriate form of company for your business in Germany.

 Should a company in Germany have a local director?

The need for a local director for a company in Germany depends on several factors, including the legal form of the company, the scope of its activities, and the specific requirements of certain regulatory authorities. Understanding these aspects will help entrepreneurs better navigate the company management requirements in Germany.

Legal forms and management requirements

In Germany, there are several main legal forms of companies, each of which has its own requirements for the management structure:

  • Limited Liability Company (GmbH): The GmbH does not require the director (Geschäftsführer) to be a resident of Germany. However, the director must be able to be present regularly in Germany to manage the company’s affairs and represent its interests.
  • Joint-Stock Company (AG): In the case of AG, the management Board (Vorstand) may consist of persons who are not residents of Germany. However, in practice, regular management responsibilities may require a presence in Germany.
  • Limited company on shares (KGaA) and other forms of partnership do not impose strict requirements for the residency of managing persons.

Tax considerations

Although German law does not always require a local director, tax considerations may make this practically necessary. A company’s tax residence is determined by its place of management, which affects its tax liabilities in Germany. If key decisions are made outside of Germany, this may raise questions from the tax authorities about the company’s place of tax residence.

Working with local regulators and banks

Having a local director can facilitate interaction with German regulatory and financial institutions. Many banks and regulators prefer to deal with a person who is available for meetings and discussions in Germany.

Practical aspects

To ensure effective management and prompt resolution of emerging issues, the presence of a director who can quickly respond to requests and represent the company’s interests in Germany is a practical advantage. This is especially important for companies with active commercial activities in Germany.


While German law does not always explicitly require a local director to run a business, tax, operational and practical considerations may make this recommended. The decision to appoint a local director should take into account the specifics of the company’s activities, its management structure and strategic goals in the German market. It is also important to consider residency requirements in the context of tax planning and corporate governance.

 What is the amount of state fees when setting up a company in Germany?

The amount of state fees for establishing a company in Germany depends on several factors, including the chosen legal form of the company, the amount of authorized capital, as well as the specific services that may be required during the registration process. It is important to note that in addition to state fees, additional fees may be charged for notarial services, registration in the commercial register, and other administrative procedures. Let’s look at the main aspects related to state fees when setting up a company in Germany.

State registration fees and charges

Limited Liability Company (GmbH)

  • Notary fees: The cost of notarizing documents for the establishment of a GmbH depends on the size of the company’s authorized capital. On average, notary fees can range from 100 to 500 euros.
  • Registration in the Commercial Register (Handelsregister): The fee for registering a GmbH in the commercial register is approximately 150 euros.

Joint Stock Company (AG)

  • Notary fees: For AG, notary fees for the establishment and registration of documents also depend on the authorized capital, but due to the higher requirements for the authorized capital of AG (minimum 50 000 euros), the fees may be higher than for GmbH.
  • Registration in the commercial register: The fee for making an entry in the commercial register for an AG can also be higher than for a GmbH, amounting to about 200 euros.

Unternemensgesellschaft (UG)

  • Notary fees: Considering that UG can be established with a registered capital of only 1 euro, the notary fees for registration may be lower than that of a GmbH, but they are still expected to be around 100 euros.
  • Registration in the commercial register: The cost of registering UG in the commercial register is similar to the cost for GmbH, about 150 euros.

Additional fees and expenses

In addition to direct government fees and registration fees, potential entrepreneurs should also consider additional costs:

  • Fees for obtaining certificates and statements: During the registration process, you may need to obtain various certificates, for example, from the tax service or the Chamber of Commerce and Industry, which also entails additional costs.
  • Consulting services: Fees for lawyers, tax consultants, or accountants that may be required to prepare documents and consult on the registration process are an additional but important factor in the total cost of setting up a company.


The amount of state fees and charges for the establishment of a company in Germany varies depending on the form of the company and the associated administrative procedures. It is important to plan ahead and account for all possible costs in order to ensure a smooth and efficient foundation of your business in Germany. Prior consultation with professionals will help you avoid unexpected expenses and simplify the registration process.

 What is the annual cost of servicing a company in Germany?

The annual cost of servicing a company in Germany depends on a number of factors, including the legal form of the company, the size and scope of its activities, as well as the amount of administrative, accounting and legal services required. This article provides an overview of the main costs associated with maintaining a company in Germany.

Tax liabilities

  • Corporate tax: The standard corporate tax rate in Germany is about 15%, to which is added a solidarity tax of 5.5% of the corporate tax amount.
  • Trade Tax (Gewerbesteuer): This tax varies depending on the municipality and can range from 7% to 17% of the company’s profits, subject to certain tax deductions and thresholds.

Accounting and auditing

The cost of accounting and auditing services depends on the size and complexity of the company’s operations. Small businesses can expect to incur annual costs of several thousand euros, while large companies or those operating in regulated sectors can incur significantly higher costs.

  • Small businesses: from 1,000 to 5,000 euros per year.
  • Medium and large enterprises: from 5,000 to 20,000 euros and above per year.

Notary and legal services

Notarial services are required when registering changes in constituent documents or transactions that require notarization. Legal services may include tax, labor, and corporate law consultations.

  • Notary services: from 100 to several thousand euros per transaction.
  • Legal services: the cost varies depending on the complexity of the services provided and the reputation of the law firm.

Registration and licensing fees

Some activities in Germany require special licenses or permits, the cost of which may vary.

Contributions to Chambers of Commerce and Industry

Almost all companies in Germany are required to be members of the relevant Chamber of Commerce and Industry (IHK). The annual fee depends on the size of the company and its annual turnover.

  • Small business: from several hundred to several thousand euros per year.
  • Large business: it can reach tens of thousands of euros per year.


This category includes insurance, office rent, utilities, and other operating expenses. The amount of these expenses strongly depends on the location, size, and specifics of the company’s business.


The annual cost of servicing a company in Germany can vary significantly depending on many factors. Planning and effective management of operating expenses are key to maintaining a company’s financial health. It is also important to regularly review and optimize costs to ensure the sustainability and growth of your business.

 What are the main advantages of establishing a company in Germany?

The establishment of a company in Germany provides a number of significant advantages, making this country one of the most attractive places for doing business in Europe. A stable economy, a highly skilled workforce, a well-developed infrastructure, and a favorable geographical location are just some of the many factors that attract entrepreneurs from all over the world. Let’s take a closer look at the key advantages of setting up a company in Germany.

Stable economy

Germany has the fourth largest economy in the world and the first in Europe. Economic stability, low inflation and sustained economic growth create favorable business conditions. The German economy is characterized by a strong industrial sector, advanced technology and innovation.

Leading export market

Germany is one of the leading exporters of goods and services in the world, which provides companies with access to international markets. The country is famous for its high quality of production, especially in the automotive, engineering and chemical industries.

Strategic geographical location

Located in the heart of Europe, Germany offers unique logistics and transportation advantages. It is an ideal point of access to European markets due to its well-developed transport infrastructure, including roads, railways and waterways.

Highly skilled workforce

Germany is known for its professional education system, which ensures a high level of qualification of the labor force. The presence of educated and qualified specialists in many industries makes the country attractive for technology and research projects.

Support for innovation and research

The German Government actively supports innovation and research through various funding and subsidy programs. This creates favorable conditions for startups and enterprises engaged in the development of new technologies.

Attractive tax system

While the German tax system may seem complicated, it offers a number of benefits and incentives for businesses, especially those who invest in research and development. In addition, there are special tax regimes for small and medium-sized enterprises.

Legal protection and reliability

The German legal system provides a high level of protection of property rights, intellectual property and investment. Clarity and predictability of the legal environment contribute to creating a safe and stable business climate.

Access to the European market

As a result of its membership in the European Union, companies registered in Germany gain unhindered access to the European single market with a population of more than 500 million people, which expands their potential market opportunities.


The establishment of a company in Germany opens the door for entrepreneurs to one of the largest and most developed markets in the world. Economic stability, a skilled workforce, an innovative ecosystem and a strategic location make Germany one of the best places to run and expand your business.

 What are the ways to establish a company in Germany?

Setting up a company in Germany is a process that can vary depending on the type of business you plan to set up. The German economy offers a variety of legal forms for doing business, each of which has its own characteristics, requirements for constituent capital, taxation and management. Let’s look at the main ways to establish a company in Germany.

  1. Registration of an individual entrepreneur (Einzelunternehmer)

The easiest way to start a business in Germany is to register as an individual entrepreneur. This option is ideal for solo entrepreneurs who are not looking for limited liability. Registration takes place at the local sales office (Gewerbeamt), and no initial capital is required.

  1. Limited Liability Company (GmbH)

GmbH is the most popular form of company in Germany among small and medium-sized businesses, as it offers limited liability to the founders. To create it, you need to:

  • Prepare and notarize the foundation agreement.
  • Deposit a minimum authorized capital of 25,000 euros.
  • Register the company in the local trade register (Handelsregister).
  1. Joint Stock Company (Aktiengesellschaft, AG)

AG is suitable for large enterprises and those who plan to attract investment through the issuance of shares. The AG foundation requires:

  • Development of the charter and formation of the initial board of Directors and supervisory board.
  • Deposit of the authorized capital of at least 50 000 euros.
  • Registration in the commercial register.
  1. Limited Company (Kommanditgesellschaft, KG)

KG is a company that has at least one full partner with unlimited liability and one or more limited liability partners. This format is suitable for family businesses and startups. Registration requires signing an agreement between partners and registering in the trade register.

  1. Limited Liability Company (GmbH & Co. KG)

This is a special type of limited liability company, where a full partner is a GmbH, which provides additional benefits of limited liability. The establishment process includes the creation of a GmbH and the subsequent registration of a KG.

  1. Registration of a branch of a foreign company

Foreign companies can establish branches in Germany, which are subject to registration in the commercial register. Branches operate under the jurisdiction of the parent company and may conduct business in Germany.

Procedural aspects

  • Notarization: Most registration procedures require notarization of documents.
  • Registration in the commercial register: It is mandatory for most forms of business and includes the submission of necessary documents and payment of a state fee.
  • Tax registration: After registration in the commercial register, the company must be registered with the tax service.


Choosing the right legal entity form and understanding the registration process is critical to successfully launching and managing a business in Germany. A stable economy, a strict legal system and a favorable business environment make Germany one of the best places to do business in Europe.

 Do I need to have a registered office in Germany?

Having a registered office in Germany is a prerequisite for establishing and doing business in the country, which reflects the requirements of German corporate and tax legislation. The legal address plays a key role in the process of registering a company, receiving mail and official notifications from government agencies, and also serves as an indicator of the company’s presence in the German market. Let’s look at the main aspects related to the need to have a legal address in Germany.

What is a legal address?

The legal address is the official registration address of the company, which is used for state registration and all official documents. This address must be physically located in Germany and indicated in the company’s registration documents.

Why is a legal address required?

  1. Company registration: To register a company in the German Trade Register (Handelsregister), you must provide your registered address. Without this, the registration process cannot be completed.
  2. Receiving official correspondence: The legal address is used to receive all official documents and notifications from tax authorities, courts, and other state institutions.
  3. Tax registration and accounting: A registered office is required for the company’s tax registration and accounting, which is a mandatory requirement for doing business in Germany.
  4. Customer and partner Trust: Having a physical address in Germany can increase the credibility of your business among customers and business partners, as it indicates that you are serious about doing business in the German market.

How do I get a legal address in Germany?

There are several ways to get a legal address for your company in Germany:

  1. Office space rental: You can rent an office space that will serve as your company’s legal address. This is the most suitable option for companies that need a physical presence and workspace.
  2. Virtual Office: For companies that do not require a permanent physical presence, a virtual office can be an effective solution. This allows you to have a legal address and mailbox in Germany, as well as access to periodic use of office space and meeting rooms if necessary.
  3. Using the address of the founder or director: In some cases, small businesses may use the address of the founder or director as the legal address of the company, if permitted by local law and the company’s founding document.


Having a registered office in Germany is a mandatory requirement for all companies wishing to operate in this country. It not only meets legal requirements, but also serves as an important element of corporate image and trust in the market. Choosing a suitable legal address should take into account the specifics of your business, future plans and budget.

 Can I open a branch of a foreign company in Germany?

Opening a branch of a foreign company in Germany is quite feasible and can be a strategic step to expand your business in one of the largest and most developed markets in Europe. The branch provides a foreign company with the opportunity to operate in Germany under its own brand, using existing business models and corporate standards. In this article, we will look at the key aspects related to opening a branch of a foreign company in Germany.

The concept of a branch

A branch of a foreign company (Zweigniederlassung) in Germany is not a separate legal entity, but a division of the parent company that does business in Germany under the same name and is managed from the country of its foundation. The branch has the right to engage in all activities that fall within the scope of the parent company’s activities and must comply with German legislation.

Advantages of opening a branch office

  1. Brand and reputation: The branch allows you to use your existing brand and corporate reputation, which can promote the trust of customers and partners in a new market.
  2. Simplified control and management: The branch is managed directly by the parent company, which allows for closer integration and control over operations.
  3. Research and development: Germany offers favorable conditions for research and development projects, including tax incentives and subsidies.

The process of opening a branch office

  1. Registration: A branch of a foreign company must be registered in the German Trade Register (Handelsregister). The process involves submitting documents about the parent company, describing the branch’s activities, and appointing authorized representatives.
  2. Legal address: To register a branch, you must have a registered office in Germany.
  3. Tax registration: The branch must be registered with the tax service in order to obtain a tax number and, if necessary, a VAT payer’s number.
  4. Social Insurance: If the branch is planning to hire employees, it is necessary to register with the German social insurance system.

Legal and tax aspects

  • Legal regulation: The branch is subject to German legislation regarding its activities, labor law, taxation and other aspects.
  • Taxation: The branch is subject to income tax in Germany from its activities. However, international agreements for the avoidance of double taxation may affect tax liabilities.


Opening a branch office in Germany can be an effective solution for foreign companies seeking to expand their presence and strengthen their position in the European market. While the process requires careful preparation and compliance with local legal and tax requirements, the benefits of accessing Germany’s advanced economy, skilled labor, and innovative ecosystem can significantly outweigh the initial effort and costs.

 Can a foreigner open a company in Germany?

Foreign entrepreneurs can open a company in Germany, which makes this country one of the most attractive places for international business in Europe. Germany offers a stable economic environment, a skilled workforce and access to the European market, which is a significant advantage for foreign investors. However, the process of starting a company in Germany requires careful planning and an understanding of local legal and administrative procedures.

Types of companies available to foreigners

Foreigners can choose different legal forms for their company in Germany, including:

  • Limited Liability Company (GmbH): the most popular form for small and medium-sized businesses with limited liability of founders.
  • Joint-stock Company (AG): suitable for large enterprises planning to raise capital through a public offering of shares.
  • Individual entrepreneurship (Einzelunternehmer): for individual entrepreneurs who want to take full control of their business.

Main stages of opening a company

  1. Choosing a legal form: Decide on the most appropriate company form based on the size of the business, management structure, and desired level of responsibility.
  2. Preparation of documents: Depending on the chosen form of business, it is necessary to prepare and certify the constituent documents.
  3. Registration in the Commercial Register (Handelsregister): After notarization, the documents are submitted to the commercial register for official registration of the company.
  4. Tax registration: The company must be registered with the local tax office to obtain a tax number.
  5. Opening a bank account: Required for conducting financial transactions and depositing the authorized capital.

Requirements and conditions

  • Legal address in Germany: The company must have a legal address in Germany, which will be used for official correspondence.
  • Authorized capital: For GmbH, the minimum authorized capital is 25,000 euros, while for AG it is 50,000 euros.
  • Residence permit: Although a residence permit is not always required to open a company in Germany, it may be necessary to run a business locally.

Advantages of opening a company in Germany for foreigners

  • Access to the European market: Germany is one of the largest economies in Europe with a high level of purchasing power.
  • High level of innovation: The country offers a favorable environment for research and development, supported by government incentives.
  • Skilled labor force: Access to educated and highly qualified professionals.


Opening a company in Germany by foreign investors is a promising area for international business due to a stable economy, an innovative environment and access to the vast European market. While the process may present some administrative challenges, careful planning and compliance with local laws and procedures will enable successful implementation of business plans and achieve long-term success in the German market.

 Can I get a residence permit when setting up a company in Germany?

Obtaining a residence permit in Germany when establishing a company is quite possible and can be a significant incentive for foreign entrepreneurs seeking to expand their activities to the European market. German law provides special conditions for foreigners wishing to open a business in Germany, offering them the possibility of obtaining a residence permit based on self-employment or business investment. Let’s take a closer look at what conditions and requirements must be met to do this.

Requirements for obtaining a residence permit through a company’s establishment

  1. Business Plan: Entrepreneurs must submit a detailed business plan that demonstrates the viability and economic benefits of the project for Germany. The business plan should include information about the product or service, market analysis, financial planning, and potential job creation.
  2. Sufficient capital: The entrepreneur must prove that they have sufficient capital to implement the business project. This may include equity and / or commitments from investors.
  3. Contribution to the economy: Businesses must make a significant contribution to the German economy, for example through job creation, investment or innovation.
  4. Permission from the competent authorities: Some activities may require special permits or licenses.
  5. Insurance: Entrepreneurs must ensure that they have health insurance covering their entire stay in Germany.

Residence permit application process

  1. Preparation of documents: In addition to the business plan and proof of financial viability, the application for a residence permit must be accompanied by a valid passport, biographical certificate, medical insurance and other documents confirming compliance with the requirements.
  2. Application: The application for a residence permit is submitted to the German Embassy or consulate in the applicant’s country of residence or to the local foreign office (Ausländerbehörde), if the applicant is already in Germany on a different type of visa.
  3. Evaluation of the application: The application process may take into account the views of various State bodies, including the Chamber of Commerce and Industry (IHK) and the Federal Employment Agency (Bundesagentur für Arbeit).

Temporary and permanent residence permits

Initially, entrepreneurs can be granted a temporary residence permit for a period of three years, which allows them to develop their business in Germany. If you successfully run a business that promotes economic development and job creation, you can get a permanent residence permit.


Opening a company in Germany by a foreign entrepreneur not only opens access to one of the world’s key markets, but can also become a basis for obtaining a residence permit. Careful preparation of the business plan, proof of financial viability, and strategic planning are essential for the successful completion of the process. Obtaining a residence permit through the establishment of a company is a chance not only to develop a successful business, but also to gain new prospects for living and working in Germany.

 What is written in the charter of a company registered in Germany?

The Articles of Association of a company registered in Germany (known as Satzung for GmbH or Gesellschaftsvertrag for other forms of companies, depending on the legal form) are the fundamental document defining the legal and organizational structure of the enterprise. This document contains key provisions related to the management, rights and obligations of participants, as well as procedures related to the operation and management of the company. Let’s take a look at the main sections and provisions that a company’s charter usually includes in Germany.

  1. Name and legal address of the company

The Articles of Association must indicate the full name of the company and its legal address. The name must correspond to the legal form of the company and be unique within the commercial register.

  1. Subject of activity

This section describes the main activities of the company, its goals and objectives. The subject matter of the activity should be described sufficiently specifically to provide clarity about the scope of the company’s interests.

  1. Authorized capital

The size of the company’s authorized capital and the share of each of the founders are indicated here. For the GmbH, the minimum authorized capital is 25,000 euros. The section should specify the conditions for depositing and distributing capital.

  1. Management structure

The Charter defines the company’s management structure, including the rights and responsibilities of managing directors (Geschäftsführer) in the case of a GmbH, or the management board (Vorstand) and Supervisory Board (Aufsichtsrat) for an AG. The order of appointment, powers, terms of office, and procedures for making managerial decisions are indicated.

  1. Founders and shareholders

For joint-stock companies, the charter prescribes the names of the founders, the number and types of shares that they acquire. The rights and obligations of shareholders, including profit sharing and voting procedures, may also be specified.

  1. Meetings of Shareholders

The Articles of Association should contain provisions on holding meetings of shareholders or participants, including the frequency, procedure for preparation and holding, and decision-making procedures.

  1. Accounting and profit sharing

It describes the rules of accounting, annual report preparation and audit, as well as the policy of profit distribution between participants or shareholders.

  1. Amendments to the Charter and liquidation of the company

This section includes procedures for making changes to the articles of association, quorum and majority requirements for such decisions, and procedures for liquidating or reorganizing the company.


The articles of association of a company registered in Germany play a key role in determining its structure, internal management rules and relations between its participants. It must be carefully designed to meet all the requirements of German legislation and the specifics of the company’s activities. It is important that the charter is clear, complete and accurate, as it serves as the basis for all operations and procedures within the company.

 How long does it take to set up a company in Germany?

The establishment of a company in Germany is a process that can take different times, depending on a number of factors, including the type of legal form chosen, the availability of all the necessary documents, as well as the speed of work of notaries and relevant registration authorities. In this article, we will look at the approximate terms and key stages of the process of establishing a company in Germany.

Preparatory stage

Before you start the registration process, you need to prepare carefully. This includes choosing the legal form of the company, developing a business plan, choosing a name for the company, and preparing constituent documents. The preparatory stage may take from several days to several weeks, depending on the complexity of the business and how quickly all the necessary information and documents will be collected.

Notarization and submission of documents

After preparing all the necessary documents, they must be notarized. This includes the company’s charter (or foundation agreement) and the list of founders. Notarization can usually be completed within one day, provided that you make an appointment with a notary in advance.

Then the documents are submitted to the commercial register (Handelsregister) for registration of the company. Registration in the commercial register itself may take from several days to several weeks, depending on the workload of the registration chamber and the availability of all necessary documents.

Registration with the tax Service and other authorities

After registration in the commercial register, the company must be registered with the tax service to obtain a tax number. This process usually takes several days. The company must also be registered with social insurance and other relevant authorities, if this is necessary for its type of activity.

Total duration of the process

On average, the process of establishing a company in Germany, from the beginning of preparing documents to receiving all registration numbers and fully starting operations, can take from 4 to 6 weeks. However, the time frame may vary depending on specific circumstances, including the time required to obtain specialized licenses or permits for certain activities.

Important considerations

  • Planning: Start the process in advance and take into account possible delays in the work of government agencies and institutions.
  • Professional assistance: Consider seeking help from lawyers or consulting companies that specialize in registering a business in Germany, which can speed up the process and minimize the risks of delays.
  • Thorough document preparation: Make sure that all documents are prepared correctly and completely to avoid delays at the registration stage.

Starting a company in Germany requires patience and attention to detail, but with a stable economic environment and access to the European market, the result is worth the effort.

 What activities can a company do in Germany?

Germany, with its developed economy and stable legal framework, is an attractive business environment. Companies in Germany can engage in a wide range of activities, ranging from traditional manufacturing to cutting-edge technologies and services. Here are some of the most significant and interesting areas for doing business in Germany.

  1. Production activities

Germany is known for its manufacturing sector, which includes the automotive industry, mechanical engineering, electrical engineering and pharmaceuticals. Companies such as Volkswagen, BMW, Siemens and Bayerare world leaders in their respective industries. Manufacturing companies in Germany benefit from high product quality, innovation and strict compliance with environmental regulations.

  1. Technology and IT sector

The field of information technology in Germany is actively developing, including software development, IT consulting, cloud technologies and artificial intelligence. Germany aims to become a leader in the digital economy, which creates favorable conditions for startups and innovative projects.

  1. Energy and renewable energy sources

The country is actively working to increase the share of renewable energy sources in its energy mix. This opens up opportunities for companies specializing in solar energy, wind energy, bioenergy, and energy-saving technologies.

  1. Financial services

Germany’s financial sector, including banking, insurance and fintech, is one of the largest in Europe. Companies can offer a wide range of financial services, including innovative digital solutions to meet the needs of the modern market.

  1. Healthcare and biotechnology

Germany has one of the best healthcare systems in the world, which creates favorable conditions for the development of medical and biotechnology companies. This includes the development of new medicines, medical equipment, and technologies for the diagnosis and treatment of various diseases.

  1. Tourism and hospitality

The tourism industry in Germany attracts millions of visitors every year due to its rich history, cultural heritage and beautiful nature. From the hotel industry to the restaurant industry to the organization of excursions, the hospitality industry offers many opportunities for entrepreneurs.

  1. Education and Science

Germany occupies a leading position in the field of education and research. Companies can collaborate with universities and research institutes, offer educational services, and develop research projects.


Germany offers a favorable environment for various types of businesses due to its well-developed infrastructure, skilled labor force and stable economy. Companies that want to develop their business in Germany can count on state support, access to innovation and the opportunity to enter the largest consumer market in Europe. It is also important to take into account the requirements of German legislation and strive for high quality standards and sustainable development.

 Should a company in Germany have employees?

German law does not explicitly require employees for most types of companies. For example, an individual entrepreneur (Einzelunternehmer) or a private limited liability company (GmbH) can operate without employees, if the company’s activities allow it to do so. However, in some cases, such as the creation of a joint-stock company (AG), the appointment of executive directors is required, which, depending on the context, may be considered employees.

Economic considerations

From an economic point of view, the availability of employees can be determined by the volume and specifics of work. To expand your business, implement new projects, or ensure the effective functioning of certain departments (for example, sales or customer support), hiring staff may become necessary. At the same time, at the initial stage or when running a small business, an entrepreneur can independently cope with the main tasks.

Social contributions and tax liabilities

One of the most important aspects of hiring employees in Germany is the need to pay social contributions and taxes. The employer is required to make contributions to pension insurance, health insurance, unemployment insurance, and disability insurance. This increases the total cost of labor, but at the same time provides employees with social protection.

Flexible forms of employment

In Germany, there are flexible forms of employment, such as freelance, contract or temporary work, which allow companies to attract specialists without forming a staff of hired employees. Such forms of cooperation can be beneficial for project work or specific tasks.


The question of whether it is necessary to have employees in a company in Germany cannot be answered unambiguously, as it depends on many factors, including the type of activity, the scale of the business and its specific needs. It is important to keep in mind that the availability of personnel is associated with additional responsibilities and costs, but at the same time can contribute to the growth and development of the company. Therefore, the decision to hire employees should be balanced and based on a thorough analysis of current and future business objectives.

 How do I choose a company name in Germany?

Choosing a company name is a key step in the process of establishing and registering a company in Germany. The right name not only helps to distinguish your business from competitors, but also plays an important role in forming the first impression of potential customers. In Germany, the process of choosing a name is regulated by a number of rules and requirements. Let’s look at the main aspects that will help you choose the right name for your company.

  1. Compliance with legal requirements

The first step is to check the name for compliance with local laws. There are certain restrictions in Germany:

  • The name must be unique and differ from those already registered in the same region or industry.
  • It should not mislead about the scope or types of activities of the company.
  • Some words and expressions can only be used after obtaining a special permit or qualification (for example, “bank”, “insurance”).
  1. Clarity and understanding

The name should be clear and easily understood by the target audience. Avoid complex or ambiguous words that may be misinterpreted or difficult to pronounce. In addition, it is worth considering the international context, especially if you plan to do business outside of Germany.

  1. A memorable and unique name

It is important to choose a name that is easy to remember and sets your company apart from its competitors. Uniqueness not only helps to avoid confusion with other businesses, but also simplifies the process of registering a trademark and protecting the rights to the name.

  1. Reflecting the essence of the business

A good name reflects the essence of your business or the key benefits of your products and services. This helps potential customers immediately understand what your company does and what it has to offer them.

  1. Checking domain name availability

In the age of digitalization, having a website is an essential part of running a business. Before making a final name selection, we recommend checking the availability of the corresponding domain name. It is desirable that the domain name matches or is closely related to the name of your company.

  1. Consultation with experts

If necessary, you should consult with legal and marketing experts. They can help you make sure that a name meets legal requirements, is unique, and is potentially effective in terms of branding and marketing.


Choosing a name for a company in Germany is a process that requires a careful approach and consideration of many factors. A unique, memorable and legally relevant name will become an important part of your brand and contribute to the success of your business in the market.

 Business Register in Germany

The German Business Register, known as the Handelsregister, is an official state register that records all registered commercial companies in the country. This register plays a key role in ensuring transparency and trust in the German business environment, allowing you to obtain reliable information about legal entities, their structure and financial situation. In this article, we will look at how the business register works in Germany and what aspects are important to consider when registering a company.

Business Register Assignment

Handelsregister is used for:

  • Registration of companies and entrepreneurs, ensuring legal recognition of their activities.
  • Publications of important information about companies, such as name, address, information about managers, authorized capital, etc.
  • Protect company names by preventing new companies from registering under existing names.

Registration Process

  1. Name Selection: Before applying for registration, you must make sure that the chosen company name is unique and meets all the requirements.
  2. Preparation of Documents: The main documents include the company’s charter, minutes of the founders ‘ meeting, proof of registration with the tax service and, for some types of business, special licenses.
  3. Notarization: Many documents must be notarized before being submitted to the register.
  4. Submission of the Application: After preparing and certifying all the necessary documents, the application is submitted to the local business register.
  5. Payment of State Fee: Registration with Handelsregister is accompanied by payment of state fee, the amount of which depends on the form of ownership and other factors.

Access to Register Data

Business register data is available online via the official Handelsregister website. Access to some information is free, while detailed reports and documents may be charged. This allows investors, partners and clients to check the financial status and legal status of potential business partners.

Frequently Asked Questions

  • Can I change the company’s data in the business register? Yes, any changes to company information, such as a change of address, management, or name, must be registered with Handelsregister.
  • What are the consequences of not registering a company? Doing business without registration can lead to legal consequences, including fines and a ban on continuing to do business.
  • Do I need to register an individual entrepreneur? Individual entrepreneurs (IE) should also be registered in the trade register if their activities meet certain criteria of size and turnover.


The business register in Germany plays an important role in creating a favorable and transparent business environment. The registration process requires careful preparation and understanding of German legislation. By ensuring proper and timely registration, entrepreneurs can avoid many potential problems and easily conduct their business in one of the largest and most stable economies in the world.


“Germany has emerged as a promising hub for entrepreneurs and businesses in search of a dynamic environment conducive to growth and prosperity. If the idea of launching your business in Germany appeals to you, get in touch with me, and let’s collaboratively delve into your vision.”

Diana Pärnaluik


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The time to open a company in Germany typically ranges from 1 to 4 weeks, considering preparation, document submission, and registration processes.

The main types of legal entities in Germany are:

  1. GmbH (Gesellschaft mit beschränkter Haftung): Limited Liability Company.
  2. AG (Aktiengesellschaft): Joint-Stock Company.
  3. UG (Unternehmergesellschaft): Entrepreneurial Company (similar to GmbH, but with lower capital requirements).
  4. OHG (Offene Handelsgesellschaft): General Partnership.
  5. KG (Kommanditgesellschaft): Limited Partnership.
  6. GmbH & Co. KG: A combination of a GmbH and a KG, offering limited liability and partnership benefits.

Each entity type has its own characteristics and is suitable for different business needs.

Yes, non-residents can register a company in Germany. The country welcomes foreign entrepreneurs, and there are no strict residency requirements for company registration. However, certain legal and administrative procedures must be followed, and it's advisable to seek professional advice to navigate the process effectively.

Corporate Income Tax (CIT): The standard corporate income tax rate is 15%. Additionally, a solidarity surcharge (Solidaritätszuschlag) of 5.5% is levied on the corporate income tax, resulting in an effective tax rate of 15.825%.

Trade Tax (Gewerbesteuer): The trade tax rate varies by municipality and is not uniform nationwide. The average trade tax rate is around 14-17%.

Registering a company in Germany offers numerous benefits. With a robust and stable economy, businesses can thrive in a strategically located country with easy access to major markets. Germany boasts a highly skilled workforce, fostering innovation and efficiency. The transparent legal system provides investor protection, ensuring a secure business environment. The nation's leadership in innovation and technology attracts companies in cutting-edge industries. Business ventures in Germany benefit from a global market network, while government support and various initiatives encourage entrepreneurship. The country's high quality of life, commitment to sustainability, and tax incentives further enhance its appeal for businesses seeking a favorable and prosperous environment.

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At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.

Company in Lithuania UAB

Registration number: 304377400
Anno: 30.08.2016
Phone: +370 661 75988
Email: [email protected]
Address: Lvovo g. 25 – 702, 7th floor, Vilnius,
09320, Lithuania

Company in Poland Sp. z o.o

Registration number: 38421992700000
Anno: 28.08.2019
Phone: +48 50 633 5087
Email: [email protected]
Address: Twarda 18, 15th floor, Warsaw, 00-824, Poland

Regulated United Europe OÜ

Registration number: 14153440–
Anno: 16.11.2016
Phone: +372 56 966 260
Email:  [email protected]
Address: Laeva 2, Tallinn, 10111, Estonia

Company in Czech Republic s.r.o.

Registration number: 08620563
Anno: 21.10.2019
Phone: +420 775 524 175
Email:  [email protected]
Address: Na Perštýně 342/1, Staré Město, 110 00 Prague

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