Germany Company Formation

Opening a Company in Germany

Why open a company in Germany?
Germany is a great market for business, and usually clients start a company in Germany with our help because they want to expand into the German market. Whether it is a technology company, a company that exports foreign products to Germany, or a building contractor company in Germany, the possibilities are almost unlimited in Germany.

The German economy is considered one of the most stable and durable in the world. It has experienced little competition and the labor market is stable. Germany is also home to a large number of world-leading industrial companies in fields such as automobiles, the consumer industry, the machinery industry, the software industry, the communications industry, and more.

Germany is known for quality knowledge and education, and it prepares its students with advanced technological knowledge and skills, emphasizing technical and scientific education. The German company values ​​and invests in education and research. In addition, Germany provides an advanced health and welfare system, which includes a lot of assistance to people in need, provides broad and available support to its citizens.

Germany boasts a network of factories and an advanced and developed service industry, which promotes global connectivity and the ability to export out of economic stability. Germany's economic policy is stable and clear which promotes growth and competitiveness, and puts strong structures and infrastructures in place to support the economy. Germany also exhibits records of creative thinking, includes investment in research and development, and supports innovative companies and entrepreneurs.

All these are combined together to create a powerful and advanced economy like Germany's.

Is it worth starting the process of opening a company in Germany?
German limited liability companies are considered to have a very positive reputation in the commercial field in general, and in particular in areas such as engineering, the chemical industry, the automotive industry, the machinery industry and technology. Famous German companies such as Volkswagen, BMW, Mercedes-Benz, Siemens, Bosch and more, occupy a leading position in the market the world in various fields. They are excellent in the quality of their products and services, and for most of them also in technological innovation and product development.

We always recommend starting a company in the local market where you start working. If you think that Germany will be the first market where your business will focus, opening a company in Germany is definitely the answer for you.

The process of opening a company in Germany
The first thing is to fill in general details about the owner of the company, including his personal status (married/single).

It is also required for the new company to have a local address in Germany. If necessary, we can provide you with such an address.

The process begins with the selection of three alternative names for the company, in descending order of priority.

Accordingly, basic documents must be provided such as a photocopy of a passport and a document indicating the entrepreneur's address, and a company opening form.

After that, we will carry out a procedure for confirming and saving the name for the company: a process must be carried out with the German name registrar, to make sure that the name you have chosen can be used, and to keep the name for your exclusive use.

In the next step, a power of attorney to open the company must be signed by a notary: at this stage, a power of attorney must be signed in front of a notary. Don't worry, we work with the most knowledgeable, fast and professional notaries in the country.

Then it is required to sign the incorporation documents of the new company, also with a notary: the certificate of incorporation must be signed in front of a notary.

At this stage it is necessary to start the process of opening a bank account for the new company and then deposit the amount of the equity capital in euros to the new account. The entire process of opening the account is carried out remotely, without the need to come to Germany. This is a designated bank account for holding equity. This process can also be done remotely. This is the most important stage where our expertise is expressed, because under normal circumstances almost no bank in Germany agrees to open an account for foreigners. We know the banks that do agree, so opening the company is guaranteed with the best chances for you.

After opening the bank account, the equity must be deposited. At this point we will receive confirmation that the money has been deposited.

After depositing the equity capital, we will go with the confirmation of the deposit and the other documents to the commercial court to open the company in Germany definitively in the commercial court in Germany, and at this stage an H.P. (official number of a private company) will be received. The commercial court is the way to register a company in continental countries such as Germany, Austria, Switzerland, Luxembourg and more. This is the authority that confirms the existence of the company, and is the official stamp that the entrepreneur can access and open a commercial bank account for the company. To clarify the last point, the first bank account we open is the equity deposit account only. However, after the approval of the commercial court The bank where the equity account was opened can be used to open a regular checking account for the company.

At this stage the company will be registered in the commercial register: commercial register - Handelsregister

VAT registration
After your new German company has been opened, we will help you complete the VAT registration, and the company will be able to start selling. After about a month, the process of registering the new company with the German VAT authority will be completed and you will receive a tax number (Tax I.D.).

Questions and answers
Question: Is it necessary to physically fly to Germany to open a company in Germany?
Answer: To open a company in Germany you do not need to come to Germany. The entire procedure can be carried out remotely, from your country or from anywhere else in the world where you are. We have legal agents who work in cooperation with Khodorov law firm and in full coordination with the entrepreneur who wants to open the company. The entire process is carried out remotely and at no stage is it necessary to physically come to Germany. There is no need to fly to Germany to open the company, nor the company's bank account. The entire process of opening the company and the company's bank account is carried out remotely without stepping on German soil.

Question: How long does the process of registering a company in Germany take?
Answer: In Germany they are a bit slow because they have a lot of public holidays and they take private holidays, no matter which service provider you work with, and therefore the process of opening the company should take more or less 3 months.

Name confirmation for the new company - about 7-10 days
Preparation of power of attorney - about 7-10 days
Preparing a certificate of incorporation - about 7-10 days
Opening a bank account - 21-30 days
Final opening of the company in a commercial court in Germany - 14-21 days.
For the company's VAT registration + registration in the commercial register: about 3-4 additional weeks.

Question: How do you open a bank account for a company in Germany?
Answer: In Germany, opening a bank account for the new company is mandatory.

An integral part of the company opening process is depositing a certain amount in the new company's account that is dedicated to its equity. In other words, technically a bank account must be opened as part of the process of opening the company in Germany. You cannot open a company without a bank account. After opening the bank account in Germany, the owner will deposit the equity defined in the incorporation documents.

Question: What type of company in Germany should I open?
Answer: In Germany there are two types of limited company. The first type is GmbH (GmbH), while the second type is UG. In both cases it is a limited liability company.

The first type of company in Germany is called UG. This type of company requires a minimum equity of 1 euro (although it is desirable that it be a little more, say 300 euro). Therefore, it is the most popular type of company start-up.

The second type of company in Germany is GmbH. The disadvantage of this type of company is that when opening it, an investment amount of 25,000 euros is required as equity in the company.

A company in Germany of the GmbH type is a regular limited liability company, and upon its opening a high investment amount of 25,000 euros is required as the company's "equity". This money is not "locked up" and can be withdrawn after the establishment of the company as payments for the company's expenses. Nevertheless, the requirement The high equity makes it less suitable for small businesses that are just starting out.

The UG type was created to solve this major drawback of the GMBH type, which requires an investment of equity. This type has become very popular with small businesses. This type of company requires a minimum starting equity of 1 euro, although in practice it is desirable that the equity be set at around 300 euros to be able to at least pay for a few months the fees of the bank account where the equity will be deposited.

Question: Do you need a European passport to open a company in Germany?
Answer: There is no need for a European passport. We can open a company in Germany for any foreign citizen as long as he has a valid passport.

Question: Is it possible to open a company in Germany for a foreign company?
Answer: Yes, absolutely. The foreign company will be the parent company, and the German company will be the subsidiary company.

The process of opening the company in Germany in this case will be a little different, but in general there is no problem defining the foreign company as the parent company or the holding company of the German company.

Question: How can I find a good accountant who can take care of the company in my new Germany?
Answer: We will connect you with a local accountant.

Question: Is it possible to open a company in Germany for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Germany for a person with American citizenship or a person living in the USA.

On the face of it, it seems trivial that a person with ties to the USA could open a company in Germany, but we assure you that this is not the case. Today, all banks in Germany without exception refuse to open an account for a new German company if its owner has any ties to the USA. Therefore we are probably the only ones, and certainly one of the few in Germany, who know how to open a company in Germany for a person with American citizenship or who lives in the USA.

Question: Is it possible to define that any foreign company will be the subsidiary of a company in Germany?
Answer: Yes, absolutely, we know how to do such a process with the foreign Registrar of Companies without any problems and in a completely smooth manner.

Question: How much does it cost to open a company in Germany?
Answer: Click here to contact us and get an up-to-date quote for free!