Company Formation in Germany

Located in the heart of Western Europe and a member of the EU since January 1958, Germany, whose currency is euro, has been a member of the Schengen treaty since the 26th of March 1995. The German Commercial Register is the Official body that is responsible for the company registration and maintenance.

Germany limited liability company

1. Legal system
The German legal system is built on the 1949 Basic Law of the Federal Republic of Germany.
Restrictions on foreigners
None, anyone can register a German company.

2. Time frame for company registration
2-3 weeks for registration

3. Share capital
The minimum initial share capital is 25000 euro which is payable to a corporate bank account.

4. Shareholders/Managers
Any company in Germany is expected to have at least one shareholder, that may either be a body corporate or neutral person.

5. Managing Directors
At least one managing director must be chosen as at the time of the company formation; this may be a neutral person or a member of another company. The directors may live in any part of the world. The shareholders can directly impact the management of the LLC

6. Shareholder and director meetings
There are no standard laws that demand shareholders and board meetings
Registered office
The company must occupy a registered office in Germany.

7. Financial statements
All German companies are mandated to prepare annual financial statements.

8. Taxation
Companies that conduct business activities in Germany are liable to Profit Tax on their net profit. Presently, the current profit tax rate stands at 15%. Also, there is an additional “Solidarity Surcharge” of 0.825% of the overall corporation tax aid and the local Trade tax, which can hover around 7% and 17.5%.

9. Double tax treaties
Germany has agreed on numerous double treaties with numerous jurisdictions across the globe.

10. VAT
Depending on the nature of its business activities, a company in Poland may be required to or allowed to register for VAT. The maximum rate for VAT in Germany is 19%.