Company Formation in Germany

Roadmap

How long does it take to register a company in Germany?

• 20-30 working days

 

What are the steps to register a company in Germany?

The registration process of a company in Germany is very simple. The experts of LegalBison will assist you throughout every step of it:

1. Initial consultation and agreement
2. Payment of the full invoice
3. [IF REMOTELY]: Notarization of POA by client
4. Preparation of registration documents
5. Document signed at the notary
6. Official register validity: immediately

Taxes

How high are the corporate income tax in Germany?

The national corporate income tax rate in Germany is 15% of the taxable income (annual profits)

• The effective corporate income tax rate, including subnational and trade taxes, is 29,9%

 

What Double-tax treaties has Germany?

Many countries have bilateral conventions to avoid double taxation and prevent fiscal evasion Albania, Algeria, Andorra, Anguilla, Antigua and Barbuda, Argentina, Armenia, Aruba, Australia, Austria, Azerbaijan, Bangladesh, Bahamas, Belarus, Belgium, Bermuda, Bolivia, Bosnia and Herzegovina, Brazil, British Virgin Islands, Bulgaria, Caico Islands, Cameroon, Canada, Cayman Islands, Chile, China, Cook Islands, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominica, Ecuador, Cote d'Ivoire, Egypt, Estonia, Finland, France, Georgia, Ghana, Gibraltar, Grenada, Greece, Great Britain, Guernsey, Hong Kong, Hungary, India, Indonesia, Iran, Ireland, Iceland, Isle of Man, Israel, Italy, Jamaica, Japan, Jersey, Kazakhstan, Kenya, Korea, Kosovo, Kuwait, Kyrgyzstan, Latvia, Liberia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Morocco, Mauritius, Macedonia, Mexico, Moldova, Monaco, Mongolia, Montenegro, Montserrat, Namibia, New Zealand, Netherlands, Netherlands Antilles, Norway, Oman, Pakistan, Panama, Paraguay, Philippines, Poland, Portugal, Romania, Russian Federation, San Marino, Saudi Arabia, Sweden, Switzerland, Serbia, Singapore, Sint Maarten, Slovakia, Slovenia, Spain, Sri Lanka, St. Kitts and Nevis, St Lucia, Saint Vincent and the Grenadines, South Africa, Syria, Tajikistan, Taiwan, Thailand, Trinidad, and, Tobago, Tunisia, Turks, Turkmenistan, Turkey, Ukraine, Uruguay, Uzbekistan, United Arab Emirates, United States, United Kingdom, Venezuela, Vietnam, Yemen, Zambia, Zimbabwe Status: End of 2020

VAT number

Without VAT number

• Your company will not be eligible to receive VAT refunds, which means everything bought is 19% more expensive (important: B2B payments between two VAT exempt companies are not more expensive)
• Your company will not have to file monthly tax returns (prerequisite: no one receives a salary), which means low costs

With VAT number

• A limited liability company (GmbH) can apply for a VAT number through an online procedure
• Companies involved in the domestic trading of goods are required to register for VAT
• The company will be eligible to receive VAT refunds, which means you can make use of the reverse-charge mechanism
• Monthly tax returns have to be filed, even if no transactions occur

Decide first

1. Do you want to buy a ready-made company or start a new one?
2. What is your planned business activity?
3. Do you have 12,500 EUR available to deposit as share capital?

Speak to our consultants to get a free consultation and guidance on how to choose the best jurisdiction based on your business model.

Documents to provide for company registration in Germany

• Passport copies (a scan) of shareholder/s and director/s, also beneficiary owner if applicable
• A Power of Attorney (in case of a remote company registration)
• Certified company documents (in case at least one of the shareholders is going to be a foreign company)

Information needed to get company registration in Germany

• 3 options of your desired name for the company and a company contact email address
• Names, addresses and emails of all shareholders and board members
• Short description of your company's activity

Remote incorporation

• The whole incorporation process can be conducted remotely. No travel necessary. Notarization of documents is necessary
• A Power of Attorney (POA) from (all) partners/shareholders is needed
• The POA is sent to you by us based on the services you want
• You have to certify the POA by a notary and in some cases legalize it by apostille (some countries need full legalization)
• Once you have the POA on your hands, we double-check, and you send us the original form (physical document!) via courier to our address
• Germany is part of the Hague Convention of the Apostille

Accounting and auditing

• German limited liability companies are required to provide yearly returns, including financial statements, accounts and annexes. The document package, known as «Jahresabschluss», can be filed online
• Past a certain threshold of turnover (12M EUR) or on the balance sheet (6M EUR) or number of employees (50), annual audit becomes mandatory for a GmbH

Residential requirements

What are the residential requirements in Germany?

• There are no residential requirements for managing director(s) nor shareholder(s), who can be the same single person
• A registered office in Germany is necessary for incorporation

LegalBison offers help with all of the above requirements. We assist and are local on ground. Speak now for free with one of our consultants to get your business started.