Company formation in Germany
Which legal form fits, what the notary needs, when the bank account is ready and where you have to register — the route from decision to a company that can trade.
Four steps to a company that can trade
Set the parameters
Legal form, company name, business purpose, registered address, shareholders and directors, and the rights and duties of the directors.
Notary and incorporation
The notary drafts the articles of association and notarises the formation. The application to the commercial register follows.
Bank account and capital
The business account is opened and, where the legal form requires it, the share capital is paid in.
Registrations
Tax registration with the tax office, trade registration, and registration with the further competent bodies.
The legal forms
Sole trader
A natural person carrying on business in the German market — a freelancer with an IT project in Germany, for example. No notarial formalities, but personal liability.
Corporations
The usual choice for existing foreign companies setting up a German subsidiary. Liability is limited to the assets of the company.
- GmbH — limited liability company, the standard case. Share capital €25,000, of which at least €12,500 must be paid in before registration.
- UG (haftungsbeschränkt) — the same legal form with freely chosen share capital from one euro. In return, 25% of the annual profit must go into a reserve until €25,000 is reached; it can then be converted into a GmbH.
- AG — stock corporation, for larger projects and a wider shareholder base
Partnerships
At least two partners, natural or legal persons. Often attractive for family structures investing in property.
- OHG — general commercial partnership
- KG — limited partnership
- GmbH & Co. KG — the combination that pairs the liability shield of a GmbH with the taxation of a partnership
A branch instead of a company
A foreign company can also maintain a permanent establishment or a branch office in Germany rather than forming a separate company — trading under its own name with the addition "Niederlassung Deutschland". Whether that is the better route depends on the applicable double taxation treaty and on the intended activity.
What we take on
- Advice on the choice of legal form (GbR, GmbH, UG, KG, GmbH & Co. KG, OHG, AG)
- Tax registration and application for the tax number
- VAT registration and VAT identification number
- Expert opinion on the viability of a business plan
- Advice and applications for start-up grants and funding programmes
- Preparation and support for bank meetings
- Arranging the notary appointment, the bank account and office premises
Why a tax firm rather than a formation service
Providers who promise incorporations in fifty countries are usually intermediaries: they take a commission and pass the case to a local firm. For you that means one more party in every query.
We only incorporate in Germany, but we have done it many times — and we work with an established network of notaries, lawyers, bankers and landlords. More importantly, formation is the beginning for us: we would like to look after your company afterwards. That shapes how we advise.
A formation service earns once. A firm that looks after you afterwards has an interest in the structure still fitting in three years' time.
Why Germany
- The largest economy in the European Union
- The largest single market in Europe — plus the German-speaking neighbouring markets of Austria and Switzerland
- Well-educated professionals, with English as a working language in many sectors
- A reliable legal framework and investment protection
Frequently asked questions
How long does it take to form a GmbH?
From the notary appointment to entry in the commercial register usually takes a few weeks; what decides it is the workload of the registry court and how quickly the share capital is paid in. The company can already act before entry — as a GmbH in formation.
Do I have to travel to Germany for the formation?
Notarisation generally requires personal attendance; the alternatives are a certified power of attorney or, in certain constellations, the online procedure. We clarify which route works for you with the notary in advance.
Do I need a German managing director?
No. The managing director need be neither a German national nor resident in Germany. They must, however, be able to fulfil their duties and deal with the authorities at all times.
What does the formation cost?
Besides our fee: the notary's charges for the deed and the commercial register application, the register court's fee, the trade registration and, where needed, translations and certifications. Notary and register fees follow the transaction value — for a company, the share capital. A higher share capital makes the formation more expensive.
We set out each item in advance. A flat quote would be misleading: the effort depends on how many shareholders are involved, whether they are based abroad, and whether the articles depart from the standard protocol.
Planning your market entry?
Tell us what you intend to do in Germany. We will propose a structure and set out the costs.