Registration of Company in Germany - GmbH

Company registration in Germany

Germany is a country that usually does not need in presentation. Undoubtedly, the country is associated with economic and political stability of the republic and with its high status in international relations around the world.

More than 80 million people inhabit the country, demonstrating annual increase. Over 90% of the residents are Germans.

Berlin (the capital) and Bonn are the most important cities of Germany in political and economic terms. 16 states constitute the Federal Republic. Geographically, the neighbors of Germany are the Czech Republic, Denmark, Poland and Belgium.

Germany also shares borders with Luxembourg, the Netherlands, Switzerland, Austria, and France. The waters of the North and Baltic Seas wash the northern lands of Germany. The main sources of fresh water are the Rhine, the Oder, the Danube and their numerous tributary streams.

The nature of Germany astonishes, because it is possible to enjoy the boundless forests, white peaks, picturesque lakes, beautiful landscapes there. Tourists from around the world are attracted by the ancient architecture of German cities.

Germany is member of NATO, the UN, the EU, the G8, and is also part of the Schengen Agreement.

The official language is literary German. Different dialects are used on the borders with other states.

The image of reliable economy and successful government of the country is convincing reason to register company in Germany.

Why is company in Germany worth buying

• Your company will be recognized as reliable business partner;
• The owner of German company makes use of German trademark respectively;
• Technologies, equipment, and other goods as statutory capital are duty-free imported to the CIS;
• The contributions of German company to enterprises in the CIS territories are protected as investments. There is possibility to open accounts, have credit cards of German banks, and use check books;
• In Germany, VAT shall be refunded;
• Real opportunity for company founder and his family to apply for residence permit in Germany, eventually gaining German citizenship;
• The owner of company in Germany can establish branch in any EU country;
• Business visas in Germany can be obtained multiple times;
• Companies are provided with preferential insurance;
• It is possible to obtain subsidies and grants in Germany;
• Access to credit granting by German banks.

Most foreigners prefer the Limited Liability Company (GmbH) in Germany. This form of the company is perfectly suitable for people who already have business and tend to develop it using all the advantages of German legislation.

Advantages of GmbH in Germany

• Registration of company does not require large expenses. It is enough to contribute € 25,000 in order to establish company. Moreover, the owner of the enterprise can apply this amount at his own discretion (for example, invest in business development);
• If company has two or more founders, half of the amount of the authorized capital is immediately paid. One year is given to the company for contributing the remainder of the amount;
• Once the constituent documents are notarized, the company can start its activities;
• The founders of the GmbH company, registered in the Commercial Register, bear responsibility limited by the amount of the authorized capital.

Registration of GmbH in Germany

• The Memorandum of Association is the main constituent document;
• The choice of company name is almost unlimited. It is necessary to obtain permission in the Chamber of Commerce and Industry. It is necessary to indicate the key abbreviation "GmbH" in the name;
• Minimum number of founders is not fixed. They can be foreign and German natural persons or legal entities;
• It is allowed to establish company with one director (he can be non-resident of the jurisdiction, but in some states there are other requirements).

The main function of the German LLC (GmbH) is to assure opportunities to do business with partners from the West and the East, and the companies registered in the CIS may not be considered as reliable enough for them. GmbH in Germany is simplified, flexible and cost-efficient form of business excluding personal responsibility of the participants.

German LLC is trading company and legal entity, regardless of the type of activity.

Given the low margin for minimum authorized capital of the GmbH in Germany, it is somewhat risky for counterparties. But at the same time, the participants of the German LLC demonstrate greater involvement in the business than the shareholders. It is primarily about making decisions regarding the establishment of company, the issuance of monetary loans, and the alienation of shares.
It is unequivocally possible to say that the LLC company (GmbH) in Germany has reliably recommended itself over the past decades in the context of international business.

Taxes and bookkeeping of GmbH in Germany

The effective German legislation obliges the LLC to compile balance sheet and calculate losses and profits for each business year. The reporting is submitted in German.

The LLC in Germany pays the following types of taxes:

• Corporate income tax is 25%.
• The payment of profit to the German participants provides for the payment of 20% of the income tax from capital for the participant. Payment is paid to the tax authority.
• Solidarity surcharge equals to 5.5% of corporate tax, as well as income tax on capital.
• If the profit is received by participant who is outside the jurisdiction, the tax at source of income is paid (instead of the income tax on capital).
• Local tax (for certain type of activity).
• Tax on turnover from services provided and supplies. The rate is 16%.

Have you decided to register company in Germany? Then apply for us. Registration of companies and offshore companies is one of the leading directions of our work.

International legitimate and profitable business is no longer a dream. Registration of company in Germany will help you to put into effect all your plans!