GmbH vs UG company in Germany

International investors have a hard time developing and growing companies in Germany and Greater Europe. The entrepreneurial company (UG), commonly known as mini - gmbh, is founded by the foundation of a small company (GmbH) with a capital of 5,000 to 10,500 euros, while a normal company (Gesellschoft) requires 25,000 euros.

The entrepreneurial company (UG), commonly known as mini - gmbh, is founded by the foundation of a small company (GmbH) with a capital of 5,000 to 10,500 euros, while a normal company (Gesellschoft) requires 25,000 euros. The company name must contain the name of the founder, the name of the company founder and his name. It has a board, is subject to corporation tax and can be sued. You can sue, sue and acquire property, but you cannot sue in the United States, Canada, Australia, New Zealand or any other country.

It has a board, is subject to corporate taxes and can be sued, but you can sue, sue and acquire property. International investors find it difficult to develop and grow a company in Germany or Greater Europe. It has no board and must behave in accordance with the laws of the United States, Canada, Australia, New Zealand or any other country.

The company may also operate as a sole proprietorship, but the company name must contain the name of the founder and his family members, not their names. In a way, companies like UG GmbH have advantages, the biggest of which is that the liability for the start-up is limited to the assets of the company.

A further disadvantage of the mini GmbH can be the obligation to pay a quarter of the profit into the capital reserves and a third into the capital reserve of the enterprise.

Shareholders may be aware that they do not have the resources on which they depend for their livelihoods, such as food, clothing and other essentials.

This is a relatively new type of company in Germany, which is generally regarded as a start-up with limited liability. In fact, the EJ is considered an independent legal entity, which is the property of the company and recognized by the company and regulated by law. Shareholders' liability is limited, but the number of shareholders is not limited and liability to them is not limited. This is regarded by some as an "EJ" and not a GMBH.

On the other hand, a limited liability company is the traditional model in Germany, and there are no obstacles to its establishment. German legislation was introduced to create a new company based in Germany. The idea is to create a legal framework for German entrepreneurs who create a limited liability company without having to use a foreign company form.

In order to establish a Mini GmbH, we recommend that you ask a law firm in Germany for services. In German business life, our customers shy away from founding a "Mini GMBH" because it is simply not taken seriously.

Apart from the equity capital requirement the establishment of a mini GmbH in Germany has still many further advantages. The management requirements of a Mini GMBH are much less stringent than those of an EJ company, and this can also be an important advantage for investors. Beyond that the miniGmbh can be a good alternative for German exclusive entrepreneurs, since the liabilities of the founder remain limited to the enterprise assets.

Companies that are organized as entrepreneurs bear the suffix "UG" (haftungsbeschrankt) at their name. This is a limited liability company, which is normally founded by the owner of the company and not by its family members. However, EJ is still a separate legal entity from its owner, which pays corporation tax, is responsible for the publication of annual financial statements and the management of its assets.

Under the right conditions, an EJ unit can be recognized as non-profit-oriented, but under normal circumstances not as an EJ unit.

Registration in the Commercial Register can be divided into two phases: a pre-company, which is also referred to as a pre-GmbH or GMBH Grundung, and a "pre-foundation company," whose founder only exists after a contract has been concluded with the founder for the establishment of a limited liability company in the form of an EJ unit. One may not forget that the GmBH and the UG with limited adhesion arise only with the entry in the commercial registers.

Legally, a start-up company qualifies as a company under civil law. You will receive a notary, who will enter the one-person GmbH in the commercial register as one of the persons responsible for its registration.

If you have any doubts about your status as self-employed, please contact the Deutsche Rentenversicherung Bund and call 0800 - 1000. In order to be able to work as a freelancer in Germany, you must have more than one customer and must not be considered integrated into a customer organisation. This is for small businesses, not for freelancers who want to limit their liability and do not need a lot of equity.

Startup, Accelerator, Handelsregister, Germany