Germany Company Formation
Germany Company Formation: Establish Your Business in Europe’s Economic Powerhouse Main Characteristics and the basic rules of Company registration in Germany
Germany Company Formation with BRIS Group
BRIS Group provides professional Germany company formation services for entrepreneurs, investors, and corporations seeking a solid base within the European Union. Establishing a company in Germany offers credibility, access to the EU single market, and a strong legal and economic environment — making it ideal for international business expansion.
Our team handles the complete Germany company registration process remotely, including corporate banking assistance, legal compliance, and ongoing administration. With BRIS Group, your German company will be fully compliant and ready to operate efficiently across Europe and globally.
A Guide for Non-Residents to Register a Company in Germany
Germany stands as one of the world’s most influential economies — a hub of innovation, industry, and global trade. With its strong infrastructure, skilled workforce, and central European location, Germany company formation is an attractive option for entrepreneurs and corporations seeking to establish a respected and profitable presence in the European Union.
This comprehensive guide explains how to register a company in Germany, outlining the benefits, legal structures, and step-by-step procedures to ensure a smooth and compliant business setup.
Why Choose Germany for Company Formation?
As Europe’s largest economy and one of the most business-friendly nations globally, Germany offers unmatched credibility, market access, and operational advantages for foreign investors.
Key Benefits of Germany Company Formation:
- Economic Stability: A robust economy with consistent growth and investor confidence.
- EU Market Access: Seamless entry into the European single market and trade network.
- Skilled Workforce: Highly educated professionals across all industries.
- Strong Legal Framework: Transparent and well-regulated corporate laws.
- Innovation and Technology Leadership: Germany leads globally in engineering, manufacturing, and green technology.
- Business Incentives: Tax benefits, research grants, and funding programs available for qualified investors.
- Reputation and Trust: A German company (GmbH or AG) commands international respect and credibility.
Types of Companies in Germany for Non-Residents
Germany offers several company structures, each catering to different business sizes and goals.
|
Company Type |
Description |
Minimum Capital |
Best For |
|
GmbH (Gesellschaft mit beschränkter Haftung) |
The most common type, similar to a limited liability company (LLC). Offers flexibility and limited liability for shareholders. |
€25,000 (50% payable on incorporation) |
Small to medium-sized businesses |
|
UG (Unternehmergesellschaft) |
Also known as “Mini GmbH.” A simplified version of the GmbH with a low capital requirement. |
From €1 |
Startups and small entrepreneurs |
|
AG (Aktiengesellschaft) |
Equivalent to a public limited company; allows for share issuance and greater capital access. |
€50,000 |
Larger corporations |
|
Branch Office |
Extension of a foreign parent company; not a separate legal entity. |
N/A |
Established international businesses |
|
Representative Office |
For marketing and liaison activities only (non-commercial). |
N/A |
Market exploration and promotion |
Advantages and Considerations for Non-Residents
|
Advantages |
Considerations |
|
Access to the EU’s largest consumer market |
Strict compliance and reporting requirements |
|
Highly skilled workforce and advanced infrastructure |
German-language legal documentation |
|
Global credibility and trust in German companies |
Higher setup and operational costs |
|
Stable political and economic climate |
Requires local representation or address |
|
Attractive business incentives for R&D and innovation |
Lengthy banking and registration procedures |
Requirements for Company Registration in Germany
To register a company in Germany, non-residents must meet specific legal and administrative requirements:
- Company Name: Must be unique and approved by the local Chamber of Industry and Commerce (IHK).
- Registered Office: A physical business address in Germany.
- Share Capital: Minimum €25,000 for GmbH (50% payable upon incorporation) or €1 for UG.
- Shareholders: At least one shareholder (individual or corporate, any nationality).
- Directors/Managing Director (Geschäftsführer): At least one managing director; no residency requirement, but local representation recommended.
- Articles of Association: Defines the company’s objectives, structure, and share distribution.
- Notarization: The Articles of Association and incorporation documents must be notarized in Germany.
- Bank Account: Required for depositing share capital before registration.
- Trade Register Entry: Registration with the local Commercial Register (Handelsregister).
- Tax Registration: Registration with the local tax office and for VAT (if applicable).
Step-by-Step Procedure for Germany Company Formation
Step 1 – Choose the Company Type
Select the most suitable legal entity (GmbH, UG, AG, or branch) based on your business objectives.
Step 2 – Verify and Reserve Company Name
Check name availability with the IHK (Chamber of Commerce) to ensure compliance with naming conventions.
Step 3 – Draft and Notarize Articles of Association
Prepare and notarize the Articles of Association (Gesellschaftsvertrag) outlining the company’s structure and shareholder details.
Step 4 – Open a Bank Account and Deposit Capital
Deposit the required share capital into a German bank account and obtain a capital confirmation statement.
Step 5 – Register with the Commercial Register (Handelsregister)
Submit the notarised incorporation documents, proof of capital deposit, and shareholder details to the Handelsregister.
Step 6 – Register with the Trade Office (Gewerbeamt)
Obtain a trade license (Gewerbeschein) for business operations.
Step 7 – Tax and VAT Registration
Register your company with the local tax authority (Finanzamt) and, if necessary, for VAT.
Timeframe for Germany Company Formation
|
Stage |
Description |
Estimated Time |
|
Document Preparation |
Drafting and notarizing incorporation papers |
3–7 business days |
|
Bank Account Opening & Capital Deposit |
Verification and capital deposit confirmation |
5–10 business days |
|
Registration with Handelsregister |
Official registration and approval |
1–2 weeks |
|
Tax & VAT Registration |
Issuance of tax numbers and certificates |
1–2 weeks |
Total Estimated Time: 3–5 weeks (depending on local authority processing and bank procedures).
Post-Incorporation Compliance
After formation, German companies must maintain ongoing compliance with regulatory requirements:
- Filing of annual financial statements with the Commercial Register.
- Compliance with German GAAP (HGB) accounting standards.
- Registration and reporting for VAT, corporate tax, and trade tax.
- Maintenance of a registered office in Germany.
Timely updates on shareholder or director changes.
How Our Professionals Can Help
Establishing a company in Germany involves navigating complex legal, tax, and administrative frameworks. Our team of multilingual corporate specialists provides end-to-end support for non-residents seeking Germany company formation.
Our Services Include:
- Consultation on choosing the optimal company structure
- Company name verification and reservation
- Drafting and notarization of incorporation documents
- Bank account opening assistance
- Full registration with Handelsregister and Gewerbeamt
- Tax and VAT registration support
- Accounting, payroll, and ongoing compliance management
- Virtual office and local representation services
- Legal and tax advisory tailored to foreign investors
Start Your Germany Company Formation Today
Germany is the beating heart of the European economy — a place where innovation meets reliability. Whether you are expanding your international footprint or launching a new venture, forming a company in Germany offers unmatched opportunities for growth, credibility, and long-term success.
Contact us today to begin your Germany company formation journey. Our professional team will handle every step, ensuring a smooth, compliant, and efficient setup tailored to your business goals.
Questions & Answers
1. What is the corporation tax rate in Germany?
The corporation tax (Körperschaftsteuer) in Germany is set at a flat rate of 15%. This tax applies to the income of corporations and is one of the main components of the corporate tax system.
2. How much is the trade tax in Germany?
The trade tax (Gewerbesteuer) in Germany varies by municipality, typically ranging from 25% to 33%. This is a tax on business profits and is levied by local authorities, adding an additional layer to the overall tax burden for businesses.
3. What are the income tax rates in Germany?
Income tax in Germany is progressive, with rates ranging from 0% to 45%. The specific rate depends on the individual’s income level, with higher earners facing the maximum tax rate.
4. What is the value-added tax (VAT) rate in Germany?
The standard value-added tax (VAT) rate in Germany is 19%. This applies to most goods and services, with a reduced rate of 7% for certain items, such as food and books.
5. Are there any important exemptions or deductions available?
Yes, individuals and corporations may benefit from various exemptions and deductions within the German tax system. These can include allowances for business expenses, specific tax exemptions for start-ups, and personal allowances in income tax calculations. Consulting a tax advisor is recommended to understand the applicable provisions.
1. What types of companies can non-residents establish in Germany?
Non-residents can primarily establish two types of companies in Germany: the limited liability company (GmbH) and the entrepreneurial company (UG). A GmbH requires a minimum share capital of €25,000, whereas an UG can be formed with as little as €1, making it a popular choice for startups.
2. What are the benefits of forming a company in Germany?
Germany offers significant benefits such as a stable economy, access to the EU market, and a strong legal framework for businesses. Additionally, the country has a skilled workforce and a reputation for high-quality products and services, which can enhance business credibility.
3. What are the requirements for forming a company in Germany?
To form a company in Germany, non-residents need to provide a valid passport, a business plan, and proof of a registered office in Germany. For GmbH, a minimum share capital deposit of €12,500 (50% of the total capital) is required at the time of registration.
4. Are there any restrictions on non-residents when forming a company in Germany?
Non-residents may face certain restrictions, such as the necessity for a German resident to be appointed as a managing director. Additionally, specific sectors may have further regulations or require additional licenses, such as finance or health-related businesses.
5. How long does it take to register a company in Germany?
The process of company registration in Germany typically takes between two to six weeks. This duration may vary depending on the complexity of the business structure and the efficiency of the local authorities involved in the registration process.
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Germany
Capital: Berlin
Region: Germany is a federal state located in Western and Central Europe. It consists of 16 federal states
Language: German
Currency: EUR
Time Zone: +1
Dial Code: +49
Abbreviations: DE
Helping Your Company Thrive in Germany With us, starting and running a business in Germany will be easy and efficient!
- Full support of the company’s registration in Germany: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.