How To Start A Businesses – Setting up a company in Germany can be complicated, but we’ve put together 8 simple steps to help you navigate the bureaucratic waters of German company formation and get started with minimal confusion.
A new business venture in any country should not be started without first specifying goals and methods. Investors and bank managers will want to know your strategy, and a business plan will help you focus on the market you are targeting and how your money will be acquired, used and prepared.
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A GmbH is the most common type of business structure in Germany and can be formed by one person acting as sole shareholder. It requires an initial capital of 25,000 euros, however 12,500 euros, of which 500 must be present at the registration stage.
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The next step is to confirm that the desired company name is available for you to use. Fortunately, this is a fairly simple process where the Unternehmensregister website allows you to search for previously registered company names and check that yours is unique.
For most company structures, you must have the articles of association and foundation document (Gesellschaftsvertrag) certified.
Next, you must open a German bank account containing the initial partnership capital (or at least enough to meet the minimum). Many German banks allow account creation online, meaning you can complete this step remotely, but be aware that most bank websites will be entirely in German. Remember that you will still be asked to show identification. this can be done at your local post office, or you can get the help of a notary or a lawyer to check for you.
If you apply by visiting the bank in person, you or your representative may be asked to present a passport or ID. card as well as Meldebescheinigung (‘certificate of registration’ – your proof of residence in Germany).
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You must now notarize your charter to the commercial register. You must submit a register (with certified signatures), certified articles, a list of the company’s shareholders, a certified certificate of initial capital contribution and, if applicable, a letter of appointment. from the directors of the company. If successful, your new company will be published on the Trade Register’s website.
Depending on the nature of your business, you may need to apply for a trade license (Gewerbeerlaubnis), for example if your business is a broker, estate agent, hotel or restaurant. Otherwise, you must contact your local trade office to obtain a trade license (Gewerbeschein).
The final step is to register your new business with the local tax office within four weeks of opening and within one month of notarizing the articles. The entire process described in this post shouldn’t take more than a few days, so these timelines shouldn’t cause any problems.
Always ready to guide you through all stages of establishing a new German company or expanding an existing one, and we also offer documentation services throughout Europe; driving in Germany. Do not hesitate to call us on +44 (0) 20 8421 7470 or contact us via the website for help and advice.
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