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Individuals and corporations wishing to set up a business in Germany have a number of incorporated and unincorporated company forms to choose from. The most commonly used and most apposite for corporate investors are:

The main types of company formation in Germany:

  • Limited Liability Corporation (GmbH)
  • Stock corporation (AG)
  • The Branch of a Foreign Company

The main features of a GmbH company:
The basic company in Germany is the Gesellschaft mit beschränkter Haftung - GmBH.

  • the minimum share capital for a GmbH is €25,000
  • it is the most common form of business enterprise
  • simple structure designed for private companies only
  • the minimum number of shareholders is one

The main features of an AG company:
A stock corporation - Aktiengesellschaft - AG is in many ways comparable to a limited liability company - GmbH, but requires a larger minimum capital, entails a mandatory supervisory board, more elaborate and cumbersome registration procedures and far more stringent accounting and publication provisions.

  • the minimum share capital for an AG is €50,000
  • the standard corporate form for major public companies
  • the minimum number of shareholders is one
  • subject to heavy regulation as a listed company

The main features the Branch of a Foreign Company
Foreign enterprises can establish a branch to carry out business in Germany. The branch has to be registered with the commercial register in which it has its seat and has to notify the local district administration when starting business operations. Certain types of business operation may require prove of proper qualification.

The branch is the easiest way for a foreign enterprise to set up business in Germany. Its main drawbacks, however, are that the foreign parent carries full liability for the branch's operations and that it could entail lengthy and cumbersome dealings with the tax authorities over the branch's tax assessments and liabilities.

Our company incorporation service makes it easy for you to open a company in Germany, so please contact us and we will be happy to help you.

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