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Every entrepreneur looking for a stable environment for their business will appreciate Germany as a business destination. 55,000 foreign companies already operating on the German market. Start your company in Germany today.

Why should you start a company in Germany?

As one of the founding members of the European Union, it now belongs to its most economically and politically powerful players.
As one of the most developed countries in Europe, Germany is the main destination for many migrants.

Establishing new companies or branches in Germany is suitable for investors who want to expand in the mature, established German market.

Prestige

The newly established company will gain a good image not only for its German partners. Germans are known for their consistency and precision, which is reflected in their work ethic, work organization and comprehensive approach to tasks. It thus offers the owner the acquisition of new knowledge and experience in the field of management or organization.

The most common legal forms of incorporated companies are Gesellschaft mit beschränkter Haftung (GmbH) and Unternehmerge­sellschaft (UG) haftungsbeschränkt.

The minimum capital for a GmbH company is 25,000 euros, which must be paid in real terms (in the case of one partner, only half can be paid, 12,500 euros), while for a UG company it is only 1 euro if the company pays at least 25 % of the net annual income to the reserve fund. After reaching EUR 25,000, a company with paid-up capital can transform into a limited liability company. To establish them, one shareholder, one executive and the company's head­quarters in Germany are sufficient. In Germany you will only need one shareholder, one secretary and a registered office.

Good tax system

Corporate income tax is 15.825 %, of which 15 % is the basic rate and 0.825 % is the so-called solidarity surcharge.
Choosing the right location is important before entering the German market. Taxes depend on the place where the office was registered, as the so-called business tax is applied. This tax is based on the net profit of the company reduced by EUR 24,500. A 3.5 % base is calculated from the resulting amount, which is then adjusted according to the place where the company is located.

The basic value added tax rate is 19 %. It can be reduced to 7 %. The obligation to register for the payment of VAT arises after the annual turnover exceeds EUR 17,500.

Registration of a new company in the commercial register takes a relatively short time – 1 to 4 weeks. It is necessary to remind that the company, in a way, begins to exist already at the moment when the partnership agreement was signed. In practice, however, such a company must be marked with the suffix „i.G.“ (in Gründung, or in foundation). A company designated in this way can conclude contracts and deals even before it is registered in the commercial register.

Stability, prestige, strong background and huge market potential. This is just a fraction of what Germany has to offer.

In order to establish a new GmbH it is necessary

  • Share capital of €25,000 (minimum €12,500 must be deposited into a bank account)
  • At least one founder (natural or legal person)
  • At least one executive
  • Company headquarters (virtual headquarters or office)
  • Registered trade of the company
  • Opening a bank account

Basic information

  • Type of legal entity: GmbH
  • Establishment time: five weeks
  • Number of shareholders: minimum 1, can be any nationality
  • Shareholders: members can be FO or business entities.
  • Share capital: EUR 25,000
  • Shares to bearer: allowed
  • Registered address is mandatory, but does not have to be physical
  • A company secretary is required
  • Directors: minimum 1, maximum not defined
  • Resident function of the director: the director does not have to be a resident of Germany

Taxation

  • Corporate income tax 15 %
  • Branch tax rate 15 %
  • Capital gains tax rate 15 %
  • Dividends 25 %
  • Interest 0 %
  • License fees 15 %
  • Please note a solidarity surcharge of 5.5 % on all above rates.
  • Business tax rate (average) 14 %
  • The state VAT rate is 19 %, the reduced rate is 7 %.
  • Net operating losses can be carried back in 1 year and forward unlimited against income.
  • Double taxation agreements with various countries were applied, determining tax rates on dividends, interest and royalties.
  • Accounting. Billing and preparation of accounts is required
  • Audit is not required.
  • Anonymity and privacy. Information about directors (administrators) and shareholders is open in the commercial register.

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