Setting up a German company

The most common forms of business entities in Germany are the German limited liability company (Gesellschaft mit beschränkter Haftung) and the German joint stock company (Aktiengesellschaft).

Preliminary activities before registering limited liability and joint stock companies in Germany
Prior to registration it is important to check the uniqueness of the company's name at the local chamber of industry and commerce. This is not a mandatory procedure, but if it is not completed, the company stands the risk of a lawsuit by a legal entity with the same or similar name. Also the articles of association or the foundation act in both limited liability and joint stock companies must be notarized. The company must open a bank account in which the minimum deposit or the collection of funds must be held, and a certificate must be obtained.

Registering the German limited liability and German joint stock companies at the Commercial Register
The company's representative must submit an application at the Commercial Register which must contain the notarized articles off association, the deed that states the managing board, the shareholders and the deed issued by the bank that certifies that the minimum capital has been deposited in the bank account. This procedure is done in electronic form. The Commercial Register publishes the registration of the German company on a central electronic platform.

Notifying local Office of Business and Standards (Gewerbeamt) of the German company's registration
Every newly registered company must notify the local Office of Business and Standards (Gewerbeamt) in order to obtain a trading license (Gewerbeschein). This procedure includes registration with the statistical office and the chamber of industry and commerce, the labor office, the social security and federal health insurance office. Notifying the labor office acquires the new company an eight-digit operating number needed to report social security. After notifying the local statistical office the company's founders receive a questionnaire that must be filled with the company's business data.

Setting up a German company from abroad
There are no discriminations against foreign companies compared with local ones, and both foreign and German entrepreneurs follow the same laws, have the same rights and obligations. There are no currency controls or restrictions for foreign investors, and it is not necessary that the headquarters be set on the territory of Germany. The process of setting up a company may be done online, with the help of the newly implemented electronic system.

How long does it take to found a German company?
Registering a limited liability or a joint stock company takes about 10 days, and notifying the local Office of Business and Standards is completed in 3 days. Each of the remaining procedures is finished in one day. A German company is fully established in approximately 18 days.