Company registration in Germany: GmbH vs UG

International investors have a hard time developing and growing companies in Germany and Greater Europe. The Unternehmergesellschaft (UG), commonly known as Mini-GmbH, is founded with a minimum investment of 25,000 euros (a normal joint stock company, a partnership, requires up to 25,000 euros).

If you want to start your own business, you need a board and that board is subject to corporation tax. The company name must include the name of the company, the number of employees and the address of the head office. You can acquire property, but you can sue, sue and sue again, with a maximum fine of 10,000 euros per day for each infringement.

To start a business, you must first register your company with the relevant authorities. Before you can start your business, you should jump through all the necessary hoops to register it. Before you register the company, you must provide the name of the company, the number of employees and the address of the head office.

In addition to the cost of the notary, the cost of registering a business will be between 20 and 60 euros. Entry in the Commercial Register amounts to 150 euros, whereby the share capital is to be used for the purchase of shares in the company as well as for other purposes such as marketing and advertising.

Co KG represents a sensible alternative to a GmbH if the partners cooperate like a partnership, but at the same time want to avoid unlimited liability. If your partner already has a limited liability company, you can prepare the necessary documents and assist with notarization. Establishing a limited liability company costs between 20 and 60 euros in the first year and between 30 and 50 euros per year thereafter.

For foreign companies, the registration of a branch office can be a sensible alternative to establishing a German subsidiary. Companies that are organised as entrepreneurs must attach the suffix "EJ" (limited liability) to their name. Limited liability companies are usually founded by private individuals with a limited liability company or a joint venture.

The company of EJ can be recognized as not profitable under the right conditions and pays corporation tax. However, it is still a separate legal entity from its owner and is not in a position to publish financial statements or to pay taxes, to pay employee taxes or to register as a unit in Germany.

The establishment of an EJ can be completed in less than a week, and this unit is the most popular for new companies because it is more flexible than the regular one. You could also set up an English LTD, known as mini - gmbh, with a capital of only 1 Euro.

Entrepreneurs have the possibility to obtain a permanent residence permit as director of an EJ company. Citizens of EU countries have the same rights as German citizens and do not need a visa or residence permit to start a business.

You have full personal liability for all business activities and pay personal and business tax together as a single entity. If you work alone, you will want to choose a retail structure if you do not intend to hire other employees. Consider the possibility of individuals forming a limited liability company, but separating liability from the personal affairs of the founder. The company is recognized as a separate legal entity and the number of shareholders is not limited, so the liabilities of all shareholders are limited and are paid together with corporate income tax.

This is a relatively new type of company in Germany, which is actually considered an EJ. Start-ups that have achieved limited liability status are generally considered to be more successful than those that do not. The law is enacted within the framework of the Federal Act on Business and Enterprise Law (Act on Corporate Governance).

The GmbH, on the other hand, is the traditional model in Germany, and there are no obstacles to its establishment. The establishment of a limited liability company according to the model of UG GMBH, the Gmb hs registered in Germany can even be managed from abroad, is now even easier and more straightforward.

Germany has no specific investment legislation, and there is no minimum percentage of "German investments" or sponsorship for foreign entrepreneurs to start a business. Anyone can do business with a limited liability company according to the model of UG GMBH, even without a foreign investor.

The process of setting up a business in Germany begins with filling out a registration form at the Trade Inspection Office. A foreign investor may choose to do business in Germany with UG GMBH or with another limited liability company with the same business model. The only advisor you need to look out for in terms of business plan and financing, as well as legal advice, is only the advisor who can find out the business plan and financing.

Startup, Accelerator, Handelsregister, Germany