3 January 2024

Open, buy a company (company) in Germany: company registration, opening of accounts

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How can a foreigner open a company in Germany, such as a mini GmbH or sole proprietorship (SP), LLC (GmbH), or AG (joint-stock company)? Or maybe GmbH & Co. KG? If the reader of this article is contemplating what to open, it’s likely you need to contact a company whose specialists will provide exhaustive answers to these questions, or read this article to find your answers.

Sale of a ready-made company in Germany (Frankfurt am Main)

A March 2016 company in Germany (current), an account at Commerzbank, minimal account balance, the accounting was not handled by us, but it was done properly, we take over the documentation, the client is ours, the 2018 annual report has been filed, there were a couple of deals in 2016-2017 up to €100,000 per year – equipment supply (air conditioners, etc.), then everything calmed down. The cost is €15,500, notary and registration fees up to €1,000. Everything can be formalized with a notary within a week, and you can start using the account. All formalities will be completed in 2-3 weeks. The cost includes re-registration. So, a total of €15,500+€1,000. Prepayment – €10,000.

Opening a company in Germany: types of legal forms

Let’s list and briefly review all the legal forms most frequently used by entrepreneurs in Germany for business, real estate registration, and obtaining residence permits – business immigration.

  1. GmbH (LLC) – the most common form of enterprise in Germany, similar to the CIS countries. It is typically used for most business setups. The charter capital is €25k, which can be contributed in two equal parts. When registering, half of the charter capital is paid, and the German government gives another year to contribute the remaining portion. Establishing a GmbH in Germany is relatively straightforward, as many specialists are quite skilled in doing this.
  2. Mini-GmbH – a less common but still frequently used type of company in Germany. It has a small charter capital (from €1 to €25,000) and is a good option for starting a company in Germany. A key feature of this company is the obligation to retain 25% of the profit in a reserve fund at the end of the year.
  3. GmbH & Co. K – a little-known and less understood form of enterprise. In essence, two legal forms are registered, which work together. The minimum charter capital is also €25k, like in GmbH. It also bears responsibility with the company’s capital. It is somewhat similar to the structure if you want to open an LLC in Germany and a limited partnership in one enterprise.
  4. AG (Joint-stock company) – opening a company in Germany in this form is equivalent to establishing a joint-stock company in the CIS countries. The minimum charter capital is €50k, and it can be paid in two installments, similar to GmbH – €12,500 upon registration and the rest by the end of the year. The charter capital is in shares, and typically, AG’s activities are closely related to stock exchanges.

Opening a company in Germany: price or cost?

The cost of our services when opening a company in Germany usually ranges from €3,500 for the entire turnkey process. This is the standard price for opening a GmbH in Germany. It should be noted that such a company must be maintained (serviced), reports submitted, an office or legal address maintained, and a bank account opened.

How much does it cost to open a company (legal entity) in Germany, including additional expenses and services?

  1. Accounting services and a legal address, starting at €200 per month, payable for at least six months in advance.
  2. Submitting a prepared report, which is mandatory, starts from €1,500.

The process of opening a legal entity (company) in Germany for a non-resident takes about two weeks, no more. This is if you use our company’s services. However, note that the timeline starts once we receive the necessary documents and payment.

If you want to open a construction or transportation company in Germany, you need to understand exactly what types of activities and types of transportation this company will perform, as you will likely need a license for that activity.

If a client wishes to open a branch in Germany, this can also be done without any problems. However, it should be noted that documents for registering such a branch will take a little longer to prepare than for a company where the founder is an individual.

When opening a branch in Germany, the founder (owner or parent company) will be the client’s company, which is typically registered in another jurisdiction, for example, in countries such as: UAE, Ukraine, Russia, Kazakhstan, Moldova, Armenia, Belarus, and other CIS countries, but we also often have clients from the USA, Canada, and EU countries.

As you can see, if there is a need to open a company, Germany offers more than enough tools that you can use to properly organize your business and protect it, as well as protect your assets.

Our company can accompany the process of company registration in Germany at the highest level, as our lawyers have many years of experience in corporate and banking sectors.

Company registration: Germany or another EU country?

If the goal is to register a company in a prestigious jurisdiction and avoid trust issues with partners or banks, then Germany is the clear choice. Alternatively, we can offer any other European country and beyond, but we highly recommend: Germany, Austria, Switzerland, UAE. In these countries, you won’t have to worry about business-related problems. It is worth noting that if you are opening a business in Germany, company registration can also be done in another EU country.

Registering a company in Germany: procedure and necessary documents

If a client wants to register an LLC in Germany, for example, they need to:

  • provide several company name options,
  • indicate the desired activities of the company,
  • list its founders,
  • provide their details, which must match their passport,
  • decide how they want to register the company: visit our office personally or provide a notarized power of attorney and complete the registration process remotely,
  • indicate the legal address – the company’s registration address,
  • choose a bank in which they want to open an account.

We work with the following banks: Postbank, Deutsche Bank, Commerzbank, HSBC.

It should be noted that to open an account with HSBC, the company must have an annual turnover of 30 million euros, as reflected in the relevant tax declaration.

How to register a company (legal entity) in Germany online?

With the help of our company’s specialists, you can easily register a company in Germany online. All you need to do is provide the data listed above in this article, a power of attorney for company registration, and opening a bank account. Our staff will handle the entire routine process.

The share capital can be replenished in two ways:

  • Transfer the money to our company’s account, and we will deposit it into the account after it is opened,
  • Wait for the account to open and replenish it yourself.

It doesn’t matter whether it is the registration of a business in Germany in the form of AG or GmbH, often written as GmbH by clients.

The advantages of registering a company in Germany

Germany offers a number of advantages when registering a company and opening a bank account, including:

  • Obtaining multiple business visas,
  • Gives the opportunity to obtain a residence permit in Germany when purchasing real estate in the company’s name,
  • Import certain groups of goods to CIS countries without VAT and customs duties,
  • VAT refund,
  • Ability to label your products as “Made in Germany”,
  • Registration of intellectual property rights in the EU,
  • Receiving long-term loans at low interest rates,
  • Ability to open branches of a German company in the EU,
  • Participating in international projects as a representative of a prestigious jurisdiction,
  • Taking advantage of all the privileges of German banks.

As you can see, registering a business in Germany offers all these advantages and more, as only a portion of them are listed here.

Our company provides registration services for all types of business entities in Germany, and we also offer ongoing services regardless of the legal structure of the company, whether it’s a GmbH or another type of firm.

We also can take over the management of companies that were not registered by us, but for some reason, the client does not want or is unable to work with the company that originally handled the registration in Germany.

There are cases when clients come to us asking for help in opening an account for a company that was registered for them, but for some reason, the account could not be opened. Given this, we note that registering companies in Germany may seem like a straightforward process, but it requires a meticulous and attentive approach from both the future company owner and the executor, who must understand that a company in Germany, which is not difficult to register, should have the proper structure to ensure smooth account opening in the future.

A company in Germany, registered with errors, often raises concerns among banks, and the owners of such a company often face problems.

Such errors include:

  • Indicating high-risk activities,
  • Appointing a director without a residence permit and visa in Germany,
  • Involving companies with a bad reputation, possibly from offshore zones, as founders,
  • Registering the company to a person with a poor banking history.

This is far from a complete list of everything that can only harm your business if you do not seek professional advice in time. Professionals can check, double-check, consult, and tell you how to do things correctly and what to avoid. Otherwise, the client may end up with a cheap company in Germany that was registered quickly and easily but is left without an account and the ability to conduct business, losing time and money that will have to be spent again on a new registration or account opening as a separate service.

In conclusion

In the end, it is worth noting that everyone has their way: some get it right the first time, some learn all their lives, and some have others do it for them. We hope we have been able to help and bring positive emotions to you, dear reader, and that this article has been useful and provided answers to your questions.
If you still have questions or new ones have arisen, we will be happy to answer them and guide you through the entire registration process and account opening at a high level!


INVESTMAKLER
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