Guide to Company Incorporation in Germany

1. What is the minimum share capital of a German GmbH (Limited Liability Company)?
Setting up a German Limited Liability Company requires a minimum capital of 25.000 EUR in monetary or non-monetary contributions which have to be evaluated. Also each member of a German GmbH must provide at least 100 EUR and in return receive a share with a nominal value.
 
2. What is the minimum share capital for a German AG (Joint Stock Company)?
Before opening a German AG, or Joint Stock Company, the founders must take into consideration that the minimum required capital should not be less than 50.000 EUR which is divided into shares.

3. Are there any special requirements for establishing a GmbH in Germany?
Germany is one of the most powerful countries economically speaking, and many entrepreneurs seek to invest here due to the welcoming environment and resources available. According to German law, any European Union citizens are free to start up companies in Germany, notifying the local registration office and providing the necessary documentation and funds. A non-EU member state citizen may acquire a German settlement permit in order to be able to open a business. Also a non-EU citizen may apply for residence permit and undertake a different incorporation process. The application may be made in Germany or from another country at the German Consulate or embassy and must contain an application for residence permit, a business plan, Curriculum Vitae and proof of professional qualification. However this process is only required for non-EU member state citizens. The German Limited Liability Company may be established by one person alone, or more and at least a virtual office of the company must be set up. The company needs to open a bank account in which to deposit the capital, and most banks allow setting up the account by a representative. The incorporation procedure can be taken care of through a representative, authorized to carry out all the necessary steps through power of attorney.

4. How can I register for VAT in Germany?
Even though a new company may register for VAT immediately after receiving the registration certificate, in no later than one month of the opening of the business. Registering for VAT in Germany is not mandatory for all businesses, but only for the ones including selling services and business making deliveries. Also if the turnover is below 16.650 EUR, or it is not expected to exceed 50.000 EUR, the company may choose not to register. The VAT number is provided by the central tax authority after submission of an application from the founders, including the registration certificate of the company, information on the directors and form of organization, and detailed information on the object of activity and expected turnover.

5. How can I open a bank account in Germany?
In order for the company to legally function it must have a bank account in order to make transactions and deposit the capital, prior to registration. Many banks in Germany allow opening a bank account through a representative, however it is possible the titular of the bank be required to come in person in Germany in order to demonstrate his/her existence. A copy of the passport, identification card of the founder authenticated should suffice. Also the Articles of Association legalized by a public notary are required in order to set up the account. The account is blocked upon submission of the initial capital, and after receiving the registration certificate from the Chamber of Commerce it is unblocked for the founders to dispose of the funds. Administering the account is easily done, as German banks offer Internet Banking for all bank accounts.
 
6. How can I recruit personnel in Germany?
Germany is one of the most advantageous countries to work in, as employees benefit from a well organized social service, and work providers must ensure to offer the same standards. Employers should learn that Germany offers a highly trained and skilled workforce in any domain. Hiring personnel can be done by creating accounts on job websites, or by establishing a work relationship with a recruitment agency, which can offer the best suited personnel for a certain company.

7. What is the average salary in Germany?
With one of the most powerful economies, and well structured work system, Germany ranks as one of the best countries to work in, having an average salary of over 3.000 EUR.

8. What is the overall economical situation in Germany?
Germany is one of the most prosperous countries in the world, mostly due to a well structured social security system. The powerful economy attracts millions of immigrants all over the world, the country ranking second as a large trader in terms of imports and exports. The strong and productive workforce enabled the country to overcome recession and contributed to the permanent development of all business sectors.

BridgeWest offers company formation in Germany, including virtual office services, opening of bank accounts and accounting services.