By registering an organization in Germany, any business-person will be able to bring it to the international arena in the shortest time possible.
Persons who are not residents of Germany or other states of the Eurozone can establish their own project only as a capital community, namely:
- GmbH. This is one of the analogues of LLC. An entrepreneurial community can be created as a stage when establishing a GmbH.
- AG. This is a Joint Stock Company.
Legal features of the registration of GmbH
- The GmbH registration is regulated by a special law. The foundation agreement is the fundamental document for GmbH.
- As for capital, its min amount is 25 thous. euros. If the number of founders is two or more, then during registration only half of the authorized capital will be demanded. The rest must be entered during the 1st year of the organization’s functioning.
- Individuals or legal residents and non-residents can act as founders.
- Organization must be managed by a minimum one person. A non-resident can also hold the post of director.
Legal features of the AG registration
- AG registration is regulated by a special law.
- The minimum statutory fund requirement is 50 thousand euros. 25% of this amount can be paid directly upon registration. Any shares of the company must be recorded in the register.
- Foreign individuals or legal entities can act as shareholders.
- “Management top” is created, consisting of at least one person, and a supervisory board of three members. A non-resident can also be a chairman.
The base rates specific to this jurisdiction are the following:
- VAT is 19%. Some activities are subject to a preferential rate (in some cases, zero).
- Corporate – 15%. Foreign firms also pay a certain premium called the solidarity pay.
- Capital gain – 26, 375.
- Companies with a profit of more than 24.5 thousand euros pay a tax fee of 14 to 17 +%. Each individual case requires an individual calculation of the tax amount.
- The tax rate on dividends is 25%. This amount must be paid by the subsidiaries of the company, which are also registered in Germany.
- Giving – 7-50%. Amounts up to 75 thousand euros are taxed at the min rate.
Instructions for company establishment in Germany
In order to start doing business in Germany, the owner of a GmbH needs to sign a power of attorney and notarize it. If the owner also holds the post of director of the firm, then he/she should visit Germany in order to sign constituent documents and get an account in one of the country’s banking institutions.
In order for this procedure to go through as quickly as possible and not require significant costs, it is necessary to have a clear understanding of each stage. Therefore, it is advisable to contact specialists who have been working in this field for more than 1 year. Next, we will consider main registration steps in general.
- Choose a firm name and decide on the direction of business. You need a unique name that doesn’t mislead consumers and accurately reflects the essence of the business. Company’s Statute should contain only those areas in which the company will work and develop.
- Take legal address. All constituent documents must contain legal address – via this address the company will receive all correspondence, including notifications and letters from government representatives.
- Sign foundation documents. Both the founders and their trusted representatives can put their signature on such documents. This procedure requires the involvement of a notary.
- Bank account creation and capital deposit. The process of creating an account does not take much time – about 30 minutes. After the firm is listed in the commercial register, the contributed capital can be used to develop the project.
- The owner receives tax numbers for the organization. in addition, the company needs a customs number (if necessary), a number for submission to insurance services, etc.
If you need to register a company in Germany, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in Germany. Write to us in the CRM form and we will help you register a company.
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