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%.

Types of Germany Company Incorporation

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.