Eternity Law International — News — Company registration in Germany

Company registration in Germany

Published:
December 10, 2020

By registering an organization in Germany, any business-person will be able to bring it to the international arena in the shortest time possible.

Jurisdiction features

Persons who are not residents of Germany or other states of the Eurozone can establish their own project only as a capital community, namely:

  • GmbH. This is one of the analogues of LLC. An entrepreneurial community can be created as a stage when establishing a GmbH.
  • AG. This is a Joint Stock Company.

Legal features of the registration of GmbH

  • The GmbH registration is regulated by a special law. The foundation agreement is the fundamental document for GmbH.
  • As for capital, its min amount is 25 thous. euros. If the number of founders is two or more, then during registration only half of the authorized capital will be demanded. The rest must be entered during the 1st year of the organization’s functioning.
  • Individuals or legal residents and non-residents can act as founders.
  • Organization must be managed by a minimum one person. A non-resident can also hold the post of director.

Legal features of the AG registration

  • AG registration is regulated by a special law.
  • The minimum statutory fund requirement is 50 thousand euros. 25% of this amount can be paid directly upon registration. Any shares of the company must be recorded in the register.
  • Foreign individuals or legal entities can act as shareholders.
  • “Management top” is created, consisting of at least one person, and a supervisory board of three members. A non-resident can also be a chairman.

Taxation

The base rates specific to this jurisdiction are the following:

  • VAT is 19%. Some activities are subject to a preferential rate (in some cases, zero).
  • Corporate – 15%. Foreign firms also pay a certain premium called the solidarity pay.
  • Capital gain – 26, 375.
  • Companies with a profit of more than 24.5 thousand euros pay a tax fee of 14 to 17 +%. Each individual case requires an individual calculation of the tax amount.
  • The tax rate on dividends is 25%. This amount must be paid by the subsidiaries of the company, which are also registered in Germany.
  • Giving – 7-50%. Amounts up to 75 thousand euros are taxed at the min rate.

Instructions for company establishment in Germany

In order to start doing business in Germany, the owner of a GmbH needs to sign a power of attorney and notarize it. If the owner also holds the post of director of the firm, then he/she should visit Germany in order to sign constituent documents and get an account in one of the country’s banking institutions.

In order for this procedure to go through as quickly as possible and not require significant costs, it is necessary to have a clear understanding of each stage. Therefore, it is advisable to contact specialists who have been working in this field for more than 1 year. Next, we will consider main registration steps in general.

  1. Choose a firm name and decide on the direction of business. You need a unique name that doesn’t mislead consumers and accurately reflects the essence of the business. Company’s Statute should contain only those areas in which the company will work and develop.
  2. Take legal address. All constituent documents must contain legal address – via this address the company will receive all correspondence, including notifications and letters from government representatives.
  3. Sign foundation documents. Both the founders and their trusted representatives can put their signature on such documents. This procedure requires the involvement of a notary.
  4. Bank account creation and capital deposit. The process of creating an account does not take much time – about 30 minutes. After the firm is listed in the commercial register, the contributed capital can be used to develop the project.
  5. The owner receives tax numbers for the organization. in addition, the company needs a customs number (if necessary), a number for submission to insurance services, etc.

If you need to register a company in Germany, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in Germany. Write to us in the CRM form and we will help you register a company.

Eternity Law International specialists will provide you with qualified advice on the acquisition of an offshore company, opening a bank account in any jurisdiction, as well as further support of your company’s activities at any stage.

We offer ready-made European and offshore companies. It takes 2 days to reissue documents for new owners.

If you have any questions or need advice on registering or buying a company, call us at the phone numbers listed on the website, or write to us in the CRM form located at the bottom of the page. Our specialists will answer you online.

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This region, with its robust profit – oriented sphere, sophisticated lawful system, and overseas venture appeal, is a prime place for enrollment of an organisation. If you’re considering starting your establishment there, apprehending the prices for enrollment and retainment of  organisations is vital. Below, we break down the key tariffs, processes, and stages for a succeeding launchment.

Tariffs of Profit-Oriented Functioning Enrollment 

When it comes to company registration cost in Germany, some factors come into play. For profit-oriented activity run by overseas investors, the two major models are the GmbH and the AG.

1. GmbH: This is the most popular profit-oriented unit, similar to an LLC in other jurisdictions. To submit a GmbH, it is vital to fit the lower rate of equity demands and complete distinct lawful papers. The cost of company registration Germany includes charges for lawful witnesses in validation of papers, securing a lawful commercial headquarters, and launching a bank profile of your organisation.

2. AG: For those looking to launch a larger-scale commercial activity with the capability of public listing, the AG is perfect. It demands a higher initial equity investment and comes with additional regulations, encompassing launching a supervisory board. The company registration prices Germany vary based on lawful charges, lawful witnesses, and the sophistication of your company’s setup.

Both profit-oriented models demand a thorough apprehension of German corporate law, and it’s advisable to hire staff for passing through the routine.

Charges of Organisation Retainment

Once your organisation is enrobed, ongoing charges are corresponding to retainment of its functions. The company maintenance fees Germany cover different options, such as tax filings, lawful obedience, and corporate governance demands.

1. Yearly Obedience and Fiscal reporting: organisations in this region are demanded to submit yearly obedience and undergo periodic fiscal updating contingent upon their size. Additionally, charge mandatory, comprising charges of organisation and VAT filings, can substantially influence the annual fees for company maintenance Germany.

2. Submitted Workspace and Executive Charges: Having a submitted lawful headquarters is mandatory for any German profit-oriented organisation. This is where all official mail, comprising charge notifications and government notices, will be sent. Moreover, commercials often incur continuous charges for engaging regional principales, securing workspace, and utilising accounting services.

Given the rigorous supervisory pattern, hiring specialists to guarantee obedience with the rules is often vital. These staff are proficient in conducting lawful, accounting, and auditing processes, contributing to the overall company registration and maintenance fees Germany.

Extra Tariffs for Organisation Enrollment and Retainment 

Besides the primary charges of enrollment routine and retaining of an organisation, there are other expenditures to figure out when forecasting your profit-oriented functioning. These are equally necessary to apprehend your monetary forecasts to understand how much does it cost to register a company in Germany fully.

1. Lawful and Counsel charges: Counsellors who are proficient in a corporate law could facilitate streamline the routine of submission and avoid costly mistakes. They can assist with drafting the company’s statutes, acquiring necessary licences, and explore charges complexities.

2. Banking and Equity Deposits: Launching a corporate profile is a vital stage in the routine. The monetary institution may charge setup fees, and there will be initial deposits demanded as part of the statutory capital for GmbH or AG formations. Supplementary, overseas transferring operations and currency exchange costs may arise, contingent upon the specifics of your profit-oriented functions.

3. Permits and Licences: contingent upon your industry, you might need special allowance or certifications to function in this region. The cost for these varies substantially and should be researched in advance. This will impact the overall business registration cost Germany.

4. Revenue Collection and Other Charges: This region has a complex tax system, with rates that depend on organisations turnover, VAT, and other financial factors. Furthermore, the organisation charge level, which is applied to regional and overseas profit-oriented functioning, affects overall profitability. The company registration fees comparison Germany reveals that while Germany’s tax rates are competitive, they demand careful forecasting to optimise.

Summary

Launching a company in Germany is a promising endeavour, offering unparalleled gateway to EU trading and a business-friendly sphere. However, understanding the prices for company formation Germany and the accompanying retainment charges are vital for accomplishment in commercial functioning. Proper monetary forecasting , proficient guidance, and abidance by lawful demands will ensure that your enterprise thrives in Germany’s dynamic business landscape.

Whether you’re forming a GmbH or AG, it’s essential to have a comprehensive overview of the process, from securing a lawful headquarters to handling organisation retainment charges. This will enable your profit-oriented functioning  to not only meet all supervisory demands but also flourish in one of the world’s preeminent economies.

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