Germany

General Information

Area – 357,021 sq. km

Population – 80.62 million people

Capital – Berlin

Official language – German

Official currency – Euro (EUR)  

Key Aspects

If there are two and more founders, paying up half of the authorised capital is enough to incorporate a firm. The second half is paid up in the course of the first year of a firm’s work.

After incorporation with the commercial register, the liability of founders is limited by the amount of the authorised capital of a GmbH. Realisation of goods and services under the German trade mark. The possibility to import machinery, equipment and other goods without customs duties and VAT in the CIS countries as the authorised capital of a joint enterprise. The money invested in the enterprise in the CIS countries by your German firm are reliably protected as foreign investments. Treaties for the avoidance of double taxation with many countries were concluded.

Company Type

The most popular legal structure is a Closed Limited Liability Company (Gmbh).

Corporate Legislation

Federal Taxation Act; Federal Act on Investment Companies; Federal Act on Private International Law.

Main Requirements for Company Directors and Shareholders

There should be at least one founder and one shareholder. Status – a natural person or a legal entity. Residence – may be residents of any EU country. Governing bodies – the meeting of members. There should be one director. Status – a natural person or a legal entity. Residence – may be residents of any EU country. There should be one secretary (a natural person).

* The registered office and address must be in Germany.

** There is the possibility of providing the nominee director and shareholder service.

Authorised Capital

The authorised capital of a company is EUR 25,000.

Accounting

A company must file annual accounts within 12 months after the incorporation date.

– Annual accounts;

– Annual audits;

The cost of accounting starts from EUR 250 per month. The price depends on the time spent by an accountant at the rate EUR 150 per hour.

Taxation

Trade tax paid by legal entities (Gewerbesteuer) ranges from 14% to 17.15%

Corporate tax paid by legal entities (Körperschaftsteuer)

Profits tax – 15 %

Solidarity surcharge – 1 % of income

Industrial and commercial tax – 13-16 % of income

Value added tax (Umsatzsteuer) – 19%  

Questions that need to be answered to prepare incorporation documents

∙ Passport details of the founders

∙ Passport details of the directors

∙ Photocopy of the ID pages of the founders’ and director’s international passports

∙ Types of the firm’s activity

∙ Utility Bill of the directors and founders, current email addresses and phone numbers

∙ Several proposed firm names