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Registering a company in Germany involves a structured process that ensures compliance with German business laws. Here’s a detailed guide to help you register a company in Germany:
1. Understand Legal Business Structures in Germany
Choose a legal structure based on your business model and liability preferences:
Sole Proprietorship (Einzelunternehmen): Suitable for small businesses or freelancers.
Partnerships:
GbR (Gesellschaft bürgerlichen Rechts): A simple partnership for small businesses.
OHG (Offene Handelsgesellschaft): For commercial partnerships with shared liability.
KG (Kommanditgesellschaft): Limited partnership with at least one general partner and one limited partner.
Limited Liability Companies:
GmbH (Gesellschaft mit beschränkter Haftung): Most common form; requires €25,000 in share capital.
UG (Unternehmergesellschaft): A "mini-GmbH" with lower capital requirements (as little as €1).
Corporations:
AG (Aktiengesellschaft): Suitable for large businesses with a minimum share capital of €50,000.
Branch Office (Zweigniederlassung): For foreign companies expanding to Germany.
2. Choose and Verify a Company Name
Ensure your business name is unique and complies with German naming laws.
Check the name’s availability in the Handelsregister (Commercial Register) and with the Chamber of Industry and Commerce (IHK).
3. Draft the Articles of Association (Satzung)
The Articles of Association outline the company's structure and operations. It must include:
Company name and address
Business purpose
Shareholders and their contributions
Management structure
Share distribution
For a GmbH, the document must be notarized by a German notary.
4. Open a Business Bank Account
Deposit the required share capital into a German bank account.
For GmbH: Minimum of €12,500 must be paid upfront.
For UG: Minimum of €1.
Obtain a bank statement to prove the capital deposit.
5. Register with the Commercial Register (Handelsregister)
Submit the notarized Articles of Association, proof of share capital deposit, and other required documents to the Handelsregister. This step is mandatory for GmbHs, UGs, AGs, and larger partnerships.
6. Register with the Local Trade Office (Gewerbeamt)
All businesses must register with the local Gewerbeamt (trade office) to obtain a Gewerbeanmeldung (trade license).
Provide:
Valid identification (passport or ID card)
Proof of address in Germany
Articles of Association (if applicable)
Freelancers and certain professions may not need Gewerbeanmeldung but must register with the tax office.
7. Register with the Tax Office (Finanzamt)
After Gewerbeanmeldung, the tax office will issue a Tax Number (Steuernummer).
If your annual revenue exceeds €22,000, register for VAT (Umsatzsteuer).
You may also need an EORI number for import/export activities.
8. Obtain Necessary Licenses or Permits
Certain industries (e.g., healthcare, finance, transportation, hospitality) require additional licenses or permits. Check with local authorities to ensure compliance.
9. Join Relevant Professional Associations
Some professions (e.g., craftspeople, lawyers, architects) require membership in specific chambers or associations.
10. Register with Social Security and Insurance
Register employees with statutory health insurance and social security.
Employers must contribute to health, pension, unemployment, and accident insurance.
11. Start Operations
Once all registrations are complete:
Open a business bank account for daily operations.
Set up bookkeeping and accounting systems to comply with German tax regulations.
Costs Involved
Notary fees: ~€300–€800 (depending on company structure).
Commercial Register fees: ~€150–€300.
Gewerbeanmeldung fees: ~€20–€40 (varies by municipality).
Share capital (if applicable): Minimum of €1 (UG) or €25,000 (GmbH).
Other licenses/permits: Varies by industry.
Ongoing Requirements
File annual financial statements with the Handelsregister.
Submit tax returns to the Finanzamt.
Renew business licenses (if applicable).