The Netherlands has many industries, and foreign investors can set up companies under the same conditions as local businessmen. However, there are several economic sectors that attract foreign investors because they are difficult to find in other countries. Among these:
There are many branches of agriculture, of which the most appreciated are research and development and the creation of new agricultural products;
Information technology industry composed of several clusters, each cluster has specific activities and is supported by many international companies working here;
Floral-The Netherlands is the world’s largest exporter of flowers and bulbs;
Logistics plays an important role in the trade, FMCG and transportation sectors;
Manufacturing-a large number of products are manufactured in the Netherlands and embarked on the European road; Medical, pharmaceutical and biotechnology are the most important industries in the Netherlands that combine innovation and tradition.
The Netherlands is a very attractive country because it can open a company, which is why if you are interested in doing business in the Netherlands and need information about the regulations that need to be followed, our local consultants can provide guidance for Netherlands Company Formation.
GmbH-Private LLC can be established in Germany by at least one investor with a minimum share capital of 25,000 Euros. The company’s capital can be submitted in cash or in kind (in this case, the value of the asset must be clearly shown in the company’s articles of association). One issue to consider is that shares of German GmbH cannot be transferred to the public, nor can they be registered on the stock market. The general meeting of shareholders is a meeting to ensure the management of the GmbH. Daily company decisions are made by company directors, who are appointed by the shareholders’ meeting.
German Joint Stock Company
This applies to large enterprises, because the initial capital can be increased by registering stocks on the stock market. The German joint stock company needs at least 50,000 euros in share capital. As with joint-stock companies, members only need to bear the responsibility of their contribution. Management is guaranteed by a management committee, and a supervision committee composed of at least three members regularly inspects it. For this type of business, the account must be evaluated by the statutory auditor.
German Limited Partnership
Consists of two types of partners: a silent partner who must contribute to the entity ’s capital and have limited liability within that contribution, and a general partner entity ’s debt that does not necessarily contribute to the entity ’s capital but has unlimited liability and who You can demand profits. A general partner is a partner who has decision-making power in the German limited partnership, while a silent partner cannot participate in any management decision.
Self-employed
It consists of individuals who have their own personal assets and are not protected in any way when the entity faces bankruptcy.
Branch
Branches are also a popular way to enter the German market, and many foreign investors choose branches as the first step in their business development. Branches are not legal entities, which is why their assets and liabilities belong to the parent company.
You can always contact our Germany Company Formation expert to obtain more detailed information about the advantages of such structures.
Germany is one of the EU’s most powerful economies, and many multinational companies are stationed here. Setting up a company in Germany can of course bring some benefits to your business, to name a few:
VAT on trade between EU member states is 0%
Europe’s leading economy
Considered an important member of the European Union
High-tech infrastructure and headquarters of many multinational companies
Contact qualified professionals
Possibility of business immigration from other countries
Can establish a remote company
How to set up a company in Germany?
Setting up a company in Germany is not as complicated as you think. However, some steps must be followed to establish your business; depending on the type of company you choose, they may be different. We are happy to assist you through these steps to build the right company for you.
Choose a limited liability company suitable for your business.
Find the company name. Before making sure that your name has not been used, you need to check the business register
The object of establishing a company.
Apply for the company name from the German Chamber of Commerce and Industry .
Draft and notarize the company’s articles of association.
Open a bank account for your business
Deposit the share capital into your account and submit the bank statement and documents together
Apply for registration of tax ID and local trade registry
Some companies need insurance, depending on the industry.
We will perform these steps for you. Companies in Germany can be formed remotely, so your entity does not necessarily need to exist throughout the formation process. Contact us for more information.
Legal requirements and accounting
To set up a company in Germany, the following documents must be presented at the notary office:
Director and shareholder identity information
Copy of passports of all directors, shareholders and ultimate beneficial owners
The company registration form you filled out
The company name needs to be verified in advance to ensure availability.
Incorporation of a company in Germany also requires opening a local bank account. We will help you and make sure to open up the most suitable business for your business. You must work with accountants and tax consultants to ensure that your financial records are correct.
Taxation of your company in Germany
The German tax system is a bit complicated, which is why we recommend working with professionals like us to avoid pitfalls. The German corporate tax rate is 15%, but in some cases it may be different. The 5.5% unity surcharge must be paid above the company tax. The municipality collects additional commercial taxes and sets tax rates for them. The average is 13.96%. The combined tax rate for company tax, trade tax and solidarity surcharge is about 30%.
There are different types of companies in Germany with different legal requirements and goals. It is important to establish the type that suits your company. We will guide you through the process.
These are the types to consider when setting up a company in Germany:
Germany UG
Unternehmergesellschaft (UG) is equivalent to English LTD. This type is the most popular among new companies and startups. It is more flexible than GmbH, with a minimum capital as low as 1 Euro.
Germany GmbH
GmbH (Gesellschaft mitbeschränkter Haftung) is equivalent to a private limited liability company (LTD.). GmbH is the most commonly used type when a German company is established. It is managed by a director, who is appointed by the general meeting of shareholders.
With the professional support of On Demand International, the process of establishing a company in Germany is very simple, we will find the most suitable solution for you and your business. Contact for more information.
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