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Buying a European shelf company with VAT number

Whenever you need to start doing business immediately in a European country and you need a company with a VAT number, you don’t have to wait for the bureaucratic procedures.

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We encourage you to contact our partner law firms in Bucharest: Rolegal and E&C, both part of our legal network.

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Tax Minimization Structures

BridgeWest is specialized in special corporate structures designed for tax minimization. No matter where you want to incorporate your company, you will need to consider how you can legally minimize costs.

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Guide to Company Incorporation in Germany

January 10, 2011, 12:31 pm
BridgeWest

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 limited liability company (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, which can be subscribed at the stock market in order to be offered to the public.

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 startup 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. The management of a GMBH is assured by at least one director which must be German or bring an evidence of his residency here.

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 17500 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. The VAT rate in
Germany is usually having a value of 19% but on certain services or goods a rate of 7% is applicable. The VAT refund is made quarterly. If the tax for the previous year was above 7500 EUR, than the VAT preliminary return must be made monthly.

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. Other required documents are the list with the company’s managers, their specimen of signature, the identity cards of the persons in charge with handling transactions at the bank. 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 2800 EUR.

8. What is the overall economic situation in
Germany?
Germany is one of the most prosperous countries in the world, mostly due to a well structured social security system. It is considered the largest national economy in Europe and has the fourth largest nominal GDP in the world. 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. Many of the world’s largest stock market listed companies have their headquarters in Germany.

Germany is not a country rich in raw materials and it imports than two thirds of its energy. The main developed sector of the German economy is the service branch, followed by the industry and the agriculture.

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




Open Business in Germany
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Company Formation in Germany

Berlin

Bridgewest provides the following services for company formation in Germany:

- drawing up the articles of association that can be signed through power of attorney (German laws require powers of attorney for any public notary proceedin ... [More]

Lawyers in Germany

Berlin

BridgeWest provides a wide range of legal services in Germany through our affiliated German lawyers and Law Firms in Berlin, Munchen and other major cities in Germany. We are mainly specialized in the main aspects of German Commercial Law, includi ... [More]