Germany Company Incorporation
Setup a Company in Germany

Setting up a company in Germany

Germany is a Western European country known for its economic power, culture, and history. Company formation in Germany is a popular option for businesses looking to incorporate in a jurisdiction with a strong legal system and business-friendly environment.

There are several types of companies that can be formed in Germany, including:

  • GmbH (Gesellschaft mit beschränkter Haftung): This is the most common type of company in Germany and is similar to a Limited Liability Company (LLC). A GmbH requires a minimum of one shareholder and one director and has a minimum share capital of €25,000.
  • AG (Aktiengesellschaft): This is a type of company similar to a corporation and is commonly used by large companies and publicly traded companies. An AG requires a minimum of one shareholder and one director and has a minimum share capital of €50,000.

To form a company in Germany, the following steps must be taken:

  1. Choose a company name that is not already in use and is not similar to any existing company names.
  2. File articles of incorporation with the Commercial Register. Appoint at least one director and one shareholder for the company.
  3. Obtain a registered office address in Germany.
  4. Obtain any necessary licenses or permits for the company's intended business activities.
  5. File annual financial statements and pay annual fees to the Commercial Register.

In terms of taxes, Germany has a corporate income tax rate of 15-30% depending on the company's level of income. Additionally, there are various tax incentives and credits available for businesses operating in certain sectors such as research and development, innovation, and environmental protection.

It's important to note that Germany has strict regulations in place to prevent money laundering and other illegal activities. As a result, all companies formed in Germany are required to maintain accurate records and provide information to the relevant authorities when requested. Additionally, Germany has implemented the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) to ensure compliance with international tax regulations.

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Frequently asked questions (FAQ)

Everyone has questions forming a corporation or LLC. You are not the only one. Therefore we have put together this FAQ page to address the most important issues.

See below for the questions we hear the most, and read the answers you need to know. If you don’t see your question below, please call or email us.

What is the process for forming a company in Germany?
What are the benefits of incorporating a company in Germany?
What are the requirements for directors and shareholders of a Germany company?

Learn more

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