Step by step guide to incorporate Germany company
The process to incorporate Germany company is straightforward if you know exactly what are the steps, documents and requirements needed. Tetra Consultants has ample of experience in this field and we provide this step-by-step guide to ensure our international clients are aware of the procedure as well. This is to minimize delays and surprises throughout the engagement.
One major concern of our international clients is the need to travel to Germany for either company registration or corporate bank account opening. Contact us to find out more about how to set up business in Germany without travel. Our team of experts will revert within the next 24 hours.
- Our team of experts will recommend the most suitable business entity depending on our international clients’ business goals and financial capabilities. In Germany, there are two common business entities known as GmbH and UG. Both are limited liability companies but have different paid up capital requirement. Our team will communicate closely with our international clients to determine the optimum paid up share capital and corporate structure.
- After confirming the above, Tetra Consultants will proceed to reserve our clients’ preferred company name with the German authorities. At the same time, our legal team will start preparing the articles of incorporation and other corporate documents according to the intended business activities. Before submitting the documents to the government, it is required for these incorporation documents to be translated and notarized. In most cases, the German notary will require the director of the company to travel to Germany for notarization. If our international clients are not comfortable travelling to Germany for company registration, Tetra Consultants will recommend this fast solution without travel. Alternatively, Tetra Consultants will provide our clients a nominee German director to assist with this process.
- Before the company can be registered, the paid up capital is required to be injected into a corporate bank account. Tetra Consultants will open a capital account with a local reputable German bank. However, most banks will require our international clients to travel to Germany for a face-to-face meeting. If required, Tetra Consultants will recommend our international clients to consider this fast solution or to appoint Tetra Consultants’ local nominee director.
- Once above is completed, Tetra Consultants proceeds to register the company with the German Companies Registry. On average, the company registration will be completed within 2 weeks. Once the company is registered, Tetra Consultants will courier the Certificate of Incorporation, Memorandum & Articles of Association, Register of Directors and Register of Shareholders to our clients’ preferred addresses. These corporate documents will be in German and our team will provide translation to ensure our international clients understand the same.
- Once company is registered, Tetra Consultants will begin with tax and trade registration. From our experience, we expect the registration to be completed within 4 weeks.
- After Germany company registration is officially completed, Tetra Consultants will convert the capital account into a trading account. Tetra Consultants will courier the internet banking token and access codes to our clients’ preferred addresses.
- Contact us to find out more about how to set up business in Germany. Our team of experts will revert within the next 24 hours.
FAQ
Can foreigners start a company in Germany?
- Yes, a foreigner can start a company in Germany as they have the same rights as domestic investors when it comes to forming a company, acquiring special permissions and licenses, obtaining building permits, and receiving investment incentives.
- Germany is an accessible country that encourages foreign investment and promotes projects that create new employment. The key conditions under which foreign entrepreneurs may enter the market are laid forth in the foreign trade statute.
Can foreigners start a company in Germany?
- Yes, a foreigner can start a company in Germany as they have the same rights as domestic investors when it comes to forming a company, acquiring special permissions and licenses, obtaining building permits, and receiving investment incentives.
Can foreigners start a company in Germany?
- Yes, a foreigner can start a company in Germany as they have the same rights as domestic investors when it comes to forming a company, acquiring special permissions and licenses, obtaining building permits, and receiving investment incentives.
- Germany is an accessible country that encourages foreign investment and promotes projects that create new employment. The key conditions under which foreign entrepreneurs may enter the market are laid forth in the foreign trade statute.
- However, there are some limitations, particularly in areas such as defense and the need to maintain public order for a foreign investor.
What are the entity types available in Germany, and how can I select the right one?
- The most preferred types of entities available in Germany are limited liability companies (GMBH), stock corporations (AG), an autonomous branch offices. Tetra Consultants can assist you in determining which entity type is most suited to your company’s needs and objectives.
What are the risks of doing business in Germany?
- New companies must adhere to complicated bureaucratic start-up procedures as well as an exacting tax system that imposes 14 different business taxes that must be paid in nine installments each year.
How long does it take to incorporate a company in Germany?
- Tetra Consultants will incorporate a company in Germany within 4 weeks.
What is the corporate tax rate in Germany?
- The company tax rate for Germany is 15%. There is additionally a 5.5% solidarity surcharge on corporate tax, as well as a municipal surcharge ranging from 14% to 17 %, depending on the jurisdiction. The combined rate is between 30-33% approximately.
Is there any requirement for the appointment of a local resident director?
- No, there is no requirement for the appointment of a local resident director for a setup in Germany.
What documents are required to incorporate a company?
- To proceed with company registration in Germany, for a start, you are required to provide the notarized passport copy, proof of address, CV, and proof of income of the individual director and shareholder of the company.
- If the shareholder is another entity, we will require the Certificate of Incorporation and Memorandum and Articles of Association of the corporate shareholder.
- Once Tetra Consultants receives the above, we will review the documents and provide you with an updated due diligence checklist with the list of outstanding documents.
