Germany is one of the most influential countries in the world. It has a GDP of more than $4.4 trillion. This makes it the biggest economy in Europe and the fourth biggest economy in the world after the US, China, and Japan. Germany is a highly urban city, with Hamburg, Munich, Cologne, and Stuttgart being the best-known cities. Germany borders countries like Belgium, Netherlands, Luxembourg, Denmark, Poland, Austria, Czech Republic, and Austria. Germany is known for its strong industrial base. Most importantly, it is known for its automotive industry. Companies like Volkswagen, BMW, and Daimler are known for their quality and durability.
Why Start a Company in Germany?
Germany has a large internal population. It also neighbours some of the influential countries in Europe.- Germany is an influential country in Europe and around the world.
- Technological advancements make it possible for you to automate most industrial processes.
- Germany has an advanced infrastructure that make it easier for companies to do business.
How to Start a Company in Germany
Germany is known for its strict regulations and bureaucracy. As such, the process of registering a company in the country is hard work.
- Company name – The first step is to register a company name that is available. You can use the online version of the Handelsregister.
- Select the type of company – There are three types of limited liability companies. The haftungsbeschrankt (UG) is a form of company where the founders want to have a limited liability but don’t have enough capital. A Gesellschaft mit beschränkter Haftung (GmbH) is company with limited liability. A Aktiengesellschaft (AG) is a public company in Germany.
- Company objective – You should come up with a document that explains the objectives of the company. This should comply with the German law.
- German chamber of commerce – You should register your company with the chamber of commerce. This is a free service.
- Find a notary using their website.
- Articles of association – You should draft the articles of association. You can use the many templates that are available online.
- Open a bank account – You should use your company name to open a bank account and deposit the minimum share capital.
- Submit your trade registration at the local trade office.
- Get your tax ID from the tax office.
FAQs for Registering a Company in Germany
What is the minimum share capital for German companies?
A UG requires a payment of between EUR 1 and EUR 1,000. A GmbH requires at least EUR 12,500.
How long does it take to register a company in Germany?
Germany is known for its bureaucracy and the process can take a while. For sole proprietorship and UG, the process can take at least a week or two. For GmbH and AG, it can take up to six months.
What is the corporate tax rate in Germany?
Germany is known for its fiscal conservative nature. As such, the country has a low corporate tax rate of 15%. Companies also have to pay a solidarity tax rate of 5.5% and a local municipality taxes. These range between 14% and 17%. Germany has a VAT of 19%.
Can I use a consultant?
Yes. It is possible to use company registration consultants to register a company in Germany. GFSC Global is one of the best-known company formation companies in Germany. We have teams in most German cities where we help companies form. We also offer other support services for German companies.
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