Starting a Limited Liability Company (UG) or a Limited Liability Company (GmbH) takes a lot. This includes adopting a long process before the business gets started, especially registering it with various agencies and authorities. The registration process depends on the respective court, though the courts have a larger volume of applications, it will take several weeks to process the registration application.
To register, you will follow the following agencies:
- Commercial register (Handelsregister)
- Trade office (Gewerbeamt)
- The tax office (Finanzamt)
- Chamber of industry and trade or chamber of craft, depending on the business association
- Trade association (Berufsgenossenschaft)
- An employment agency (Agentur fùr Aebeit) if you want to hire staff
Order for registration
Forming a GmbH is tax advantageous, and the application will be done in this order:
- Commercial register (Handelsregister)
- Trade office (Gewerbeamt)
- The tax office (Finanzamt)
Registering the GMBH UG in the Handelsregister
After obtaining the deed of incorporation, list of shareholders, and articles of association sworn at the notary public, that’s when the registration of the company is completed.
Create a corporate bank account in any local bank in Germany, at the notary office, with the requirement of £25,000 as the minimum amount for share capital for forming a GmbH.
Ensure that the notary transfers your company’s data electronically to the Handelsregister. An invoice will be issued to you through your company address upon the completion of the registration. A publication is made after the payment of fees.
Directors
At least one director is required
Residence
The director does not have to be a resident of Germany or the EU; nonetheless, the following requirements must be met to select a director who does not reside in Germany or the EU:
- If it is required, the director can maintain a consistent presence in Germany.
- It’s decided to choose a Prokurist among German agents
More details on https://gsl.org/en/offers/germany-company-registration/
Attendance at the notary appointment
The establishment of a GmbH or UG also necessitates an appointment with a notary public. While attendance is mandatory for all managing directors, shareholders are permitted to delegate voting rights to a representative of their choosing.
In principle, founders have two alternatives available to them beginning in August 2022: either attending the appointment in person or doing so through video call. However, given the current state of affairs, the digital alternative might not always be a viable choice. If it is accessible, you will be required to utilize a valid form of electronic identification, and the following identification options are acceptable:
- EU / EEA citizens: ID or passport with eID function
- Other citizenships: Electronic residence permit (eAT), such as an EU Blue Card, ICT card, or Mobile ICT card
You may be unable to establish a GmbH or UG in Germany if you are unable to attend the notary appointment in person, or if you are unable to produce the appropriate electronic identification to appear through video call.
How to form a German GmbH/UG in 10 steps
After these steps, you can launch your corporation. Both legal formations are complex. Here’s a procedure checklist.
Even little details can affect your company’s future. I advise taking each step slowly. Plan instead of making hasty decisions to start your business soon.
Make some fundamental choices
Initially, you must consider some fundamental core questions.
- Who will be the stockholders of your corporation?
- Who will manage the organization?
- How much will your capitalization be?
Choose a company name and vision
Your company’s name must not only sound good and be memorable to customers, but it must also be legally allowed and, most crucially, available. You must also develop a company objective that guides the actions of your new corporation. You need to:
- Acquaint oneself with the formal prerequisites
- Have you both checked with the Chamber of Commerce? (IHK)
- Verify the availability of your desired domain name and trademark
Others
- Clarify financial questions
- Contrasting Musterprotokoll and articles of affiliation
- Schedule a notary appointment.
- Establish a business bank account
- Complete your business registration
- Request commercial registration
- Acquire a tax number
- Commence your business
