Germany

Nowadays in the globalized and expanded world, the appearance on the international market is becoming increasingly advantageous and often unavoidable. Germany is a leading economic power, a founding member of the European Union, representing all major international, financial, economic and diplomatic organizations (e.g. NATO, UN, EU, OECD etc.).

The following corporation forms exist in Germany:

  • GmbH limited liability company
  • UG which is also a Limited Liability Company with the difference, that the minimum stock of this company is 1 euro
  • AG, that is German Joint Stock Company
  • Gbr – this form of corporation is a combination of several individual entrepreneurs, grouping them together
  • Gewerbe – which is the equivalent of a private enterprise
  • Niederlassung – branch office, in this case a parent company is the shareholder

The most important thing for us is to decide what kind of legal form of activity to be found while establishing a company.

Establishment of a GmbH (Limited Liability Company)

The minimum amount of the share capital is € 25 000. A rather good entrepreneur chooses to establish this kind of company to be credible in the business arena and to prove his/her seriousness. Its foundation consists of 3+1 steps:

  1. The agreement of the company should be in notarial deed
  2. Payment of the amount of the registered capital
  3. Entry to the trade register
  4. Obtaining additional permits in case of need

In Germany the liability of the Limited Liability Company is limited to the amount of the share capital, the assets of the members and the managers are not covered by the liability. In some cases however, concerning criminal law, in the case of a deliberate criminal offense the person committing the economic offense may be justiciable.

Germany has the world’s 5th and the largest economy in Europe. According to the forecasts in the next few years the German economy will grow by 2% which means an annual growth of 46 billion EUR. Concerning the disappearance of national borders, there are more and more opportunities to start business in the neighboring countries, taking advantage of the tax advantages granted by the given country and providing favorable opportunities for other entrepreneurs.