Business in Germany.
Opening your own business in Germany & mdash; relatively simple procedure, despite all the formalities, which, nevertheless, must be observed when registering legal entities. The basic legal framework for doing business in Germany is slightly different from the legislation of the Anglo-Saxon model of law. In accordance with the laws of Germany, both nationals of this country and foreigners have equal rights with respect to the establishment of companies. In addition, there are no restrictions on the repatriation of profits. As in countries with the Anglo-Saxon law model, registration of limited liability companies, joint-stock companies and other similar forms of legal entities is possible in Germany.
Types of legal entities registered in Germany.
Limited Liability Company (GmbH). This organizational and legal form of enterprises is the most common in Germany. This form has a number of foreign analogues, such as “LLC & raquo; in Russia, & laquo; Ltd. & raquo; or & lt; RTI ID = 0.0 & gt; Limited & lt; / RTI & gt; in the countries of Anglo-Saxon law, & amp; S.M.B.A. & raquo; in Denmark, & .r.o. & raquo; in the Czech Republic, etc. GmbH is the most popular among foreigners who register companies in Germany. The minimum authorized capital for the GmbH is 25,000 Euro. Joint Stock Company AG & mdash; it is a joint-stock company, which is an analogue of a joint-stock company with limited liability (“PLC”). As additional counterparts, we can cite the Russian & laquo; ZAO & raquo ;, the Danish & apos; ApS & apos; etc. Mandatory requirements include a minimum authorized capital of 50,000 Euros and 5 founders. Simple partnership (GbR) & mdash; it is a flexible organizational and legal form of an enterprise that can act as a business for one person, or be based on an agreement between two or more persons. Branch Office (Zweigniederlassung) & mdash; German subsidiary of a company originally registered in a foreign jurisdiction. The founder company, which establishes a branch in Germany, assumes full responsibility for the company’s activities, therefore in this case there are no requirements to the minimum authorized capital. Open Trading Association (OHG) & mdash; quite simple organizational and legal form of the company, in which partners carry unlimited liability of property and conduct activities depending on the terms of the partnership agreement.
What is necessary to establish a company in Germany?
The conditions for the conduct of private business as an individual labor activity are described in the Law on the Residence, Work and Integration of Foreigners in the Territory of the Federal Republic of Germany.
In order to obtain a permit to establish a company in Germany, you must comply with the following three points:
Establishment of the company is designed to satisfy any significant economic interests. The establishment of the company will have a positive impact on the German economy. The company is established with statutory capital or credit guarantees.
The following documents are provided when establishing a company:
Business plan Detailed resume Confirmation of professional experience and qualifications.
In addition, German law allows you to obtain a residence permit for entrepreneurs who have invested at least one million Euros in the economy of the country and created at least ten jobs.
The process of establishing a company.
The newly established company must be registered with two tax authorities:
Local Taxation Service Representation of the Federal Tax Service.
In addition, it is necessary to register the company in the local court & mdash; This is the responsibility of a notary.
In order to choose the most appropriate organizational and legal form of the company, it is necessary to take into account the number of its founders. Here you can choose between the form of individual entrepreneurship, partnerships or limited liability companies.
One businessman.
If an entrepreneur plans to conduct activities alone, the following options are available for him:
Individual business Limited company with one founder.
In the event that one person controls business activity and such activity is registered with the Office for Business Activities (Gewerbeamt), such person becomes an individual entrepreneur.
In the case of conducting trading activities, it is necessary to register the company in the commercial register with the wording “business established for trading operations”.
A limited liability company with one founder is entered in the commercial register by the State Notary. Despite some exceptions to this rule, limited liability companies may be established only for trade operations.
If there are several founders, the following options are available:
Non-stock companies. Joint-stock companies.
Both types of companies are entered in the commercial register and registered by a notary public.
Required documentation.
The following documents are required to establish a company in Germany:
Document confirming the existence of a residence permit in Germany, if applicable Passport Charter capital of a limited liability company (25000 Euro + state fee)
Certified translation of constituent documents of the parent company Charter capital of the Limited Liability Company (25000 Euro + state fee)
Taxation of business in Germany.
Germany & mdash; a country with a highly developed and well-established taxation system, which despite this is rather complicated. That is why, in order to fully understand the tax consequences of the activities of its future enterprise, it is recommended to seek consultations with tax advisers. Below are the main types of taxes levied in the FRG:
Sales tax or input tax (Umsatz-bzw.Vorsteuer) Income tax (Einkommensteuer) Trade tax (Gewerbesteuer) Corporate income tax (Korperschaftsteuer)
Tax rates depend on the following factors:
The size of the company The legal form of the company The industry in which the company operates.
We will be happy to register a company in Germany with a standard package of services * for just 4699 Euros!
The package includes the following services:
Preparation of all constituent documents for certification and submission to registration authorities Consultation (2 hours) on all matters relating to registration, company activity and accounting in Germany Opening an account with a German bank for the deposit of authorized capital Opening of a permanent account of the company (subject to doing business) Preparation of a constituent contract Agreement with a tax advisor Assignment of dates for signing documents in all necessary instances Personal support by our employee You and your partners.
* – if necessary, we also provide reliable legal addresses for our clients at a cost of 1499 Euros per year.