1. What are the main types of companies in Germany?

The most common company types in Germany are GmbH (Limited Liability Company), UG (Mini GmbH), AG (Public Limited Company), and OHG (General Partnership). The GmbH is the most popular form for both locals and foreign investors due to limited liability and flexible structure.

2. How much share capital is required to start a GmbH in Germany?

A minimum share capital of €25,000 is required to form a GmbH. At least half (€12,500) must be paid before registration with the Commercial Register.

3. Can a foreigner start a company in Germany?

Yes. Foreign individuals and companies can own 100% of a German company. There are no restrictions on foreign shareholders, but you must have a registered German address and comply with local legal requirements.

4. What is a UG (haftungsbeschränkt)?

A UG (Unternehmergesellschaft haftungsbeschränkt) is a “mini GmbH” with a minimum share capital of just €1. It’s ideal for startups and small businesses with limited capital but offers the same limited liability protection as a GmbH.

5. How long does it take to register a company in Germany?

The company formation process usually takes 1–3 weeks, depending on document preparation, notary appointments, and approval from the Commercial Register (Handelsregister).

6. What documents are required for Germany company registration?

You’ll need the Articles of Association, shareholder details, proof of registered address, bank confirmation of capital deposit, and notarized identification for all shareholders and directors.

7. Do I need a local director to register a company in Germany?

No. Local directors are not mandatory. A company can be managed by foreign directors, provided they meet the legal responsibilities and can represent the company in Germany.

8. What is the corporate tax rate in Germany?

Germany’s corporate income tax rate is around 15%, plus a 5.5% solidarity surcharge, and trade tax between 14%–17% depending on the municipality. The effective tax rate usually ranges from 30%–33%.

9. Is a physical office required in Germany?

Yes, every German company must have a registered office address in Germany. However, virtual office services are acceptable for registration purposes as long as they provide a legal correspondence address.

10. Can I open a German company bank account remotely?

Some banks require in-person verification, but many fintech banks and online financial institutions allow remote corporate account opening with digital verification.

11. What is the process for registering a GmbH in Germany?

1. Choose a company name and verify its availability.

2. Draft and notarize the Articles of Association.

3. Deposit share capital into a German bank account.

4. Register with the Commercial Register (Handelsregister).

5. Obtain a tax number from the local tax office.

12. Do I need a business visa to start a company in Germany?

If you’re a non-EU citizen, you may need a business visa or residence permit to manage your company in Germany. EU/EEA citizens can operate freely without restrictions.

13. What are the accounting requirements for a German company?

All companies must maintain double-entry bookkeeping, annual financial statements, and file taxes annually. Larger companies must have audited financials.

14. How can I check if a company name is available in Germany?

You can verify name availability via the German Chamber of Commerce (IHK) or Commercial Register online portal to ensure it’s unique and compliant with naming rules.

15. What are the annual compliance obligations for a GmbH?

A GmbH must:

• Hold annual shareholder meetings

• File annual accounts

• Submit tax declarations

• Maintain accounting books and corporate records

16. Can a foreign company own shares in a German GmbH?

Yes, foreign legal entities can be shareholders of a German GmbH. Ownership can be 100% foreign, and profits can be repatriated abroad under double tax treaties.

17. Do I need a local tax advisor in Germany?

While not legally required, it’s highly recommended to appoint a local Steuerberater (tax advisor) to handle accounting, VAT registration, and corporate tax filings.

18. What are the benefits of forming a company in Germany?

• Access to the EU single market

• Strong economy and political stability

• Reputation and credibility for international trade

• Double taxation treaties with 90+ countries

• Limited liability protection

19. Can I register a German company online?

Partially. Some parts of the registration process (like notary certification) still require in-person attendance, but digital notary and online filing options are expanding under new legislation.

20. How can I get professional help for company formation in Germany?

Specialized corporate service providers like BRIS Group can assist with company registration, virtual offices, accounting setup, and ongoing compliance in Germany.