Read this guide if you are seeking to establish a stock corporation in Germany, either as a citizen of another country or a resident of the country, and have no idea where to start. This guide includes steps on how to register.
Joint stock corporation (AG)
A public firm that has limited liability is known as a joint stock corporation, which is short for Aktiengesellschaft (abbreviated AG in German). It is suitable for major companies that intend to make an Initial Public Offering (IPO) at a stock exchange. The minimum capital requirement for an AG is a sizeable 50,000 euros. The German Trade Register is the authority that is responsible for registration. This register is subject to a deed that was executed by a German notary. The duration of the registration process ranges from seven to ten days, and participation from the owner in person is not required. There is a charge of 955.0 EUR for registration.
Specification of a JSC (AG)
- It becomes a legal entity after registration
- The liability of the company is limited to the share capital
- The capital of the company is divided into shares
- The company’s shares can be traded on the stock exchange
- It can be registered as a Charitable entity (gAG).
Condition for registration
The required conditions for registering a JSC in Germany are:
Shareholder
In order for a joint stock company (JSC) to be registered with the German trade register, there must be at least one shareholder. The shareholders need to be natural or legal people of any nationality and can come from any jurisdiction, but they can’t live in Germany. However, they can be from any other country. There is no restriction on how many can be in a group.
Director
It is required that the company nominate at least one director, although an infinite number of individuals may be selected for positions on the board of directors of the firm. They must be natural and legal people, regardless of their nationality or jurisdiction, but they can come from anywhere in the world.
The minimum share capital
A minimum capital amount of EUR 45,000 is required for a startup.
Registered office address
There must be a registered office address of the company located in Germany.
The requirement for registration
- A passport or European ID Card for all those associated with the company
- Proof of residential address for all associated natural persons, not older than 3 months
- A 3-month-old German Trade Register extract of all linked legal persons
- A document that authorizes the use of the registered office address. It may be:
- a copy of the rental agreement
- authorization letter from the owner
- certificate on property
- The confirmation that the minimum share capital requirement of EUR45,000 is fulfilled
- A signed copy of the deed of incorporation
- Power of attorney to handle cases like that of remote registration
