Why register a German company?
If foreigners want to develop business in Germany or EU countries, setting up a German company can bring a lot of convenience in legal procedures and business procedures.
Types of German Limited Liability Company
(German: Gesellschaft mitbeschränkter Haftung, also known as GmbH)
(the “Mini” GmbH, also known as UG)
The most common form of company in German joint ventures, many companies established by overseas companies in Germany are GMBH, such as: Google, Facebook
Characteristics and requirements of GMBH limited liability company:
1. One person can set up a German company, there is no nationality restriction for legal persons, shareholders. The company assumes limited liability with the amount of capital contribution, and there is no personal liability.
2. The registered capital of the company is 25,000 euros (50% can be deposited when the company is registered) (12,500 euros into a German bank capital verification account)
3. The legal person, shareholder, and general manager of the company can be one person (in Germany, the person who manages the company calls the general manager equal to the "legal person" of the Chinese company, and each company must name a general manager), and there is no need to hire a local person after the company is established. German employees.
4. In the first two years of the company's establishment, it needs to keep accounts and declare taxes every month, and prepare annual financial reports and tax declarations every year. Two years after the establishment of the company, if the monthly VAT amount is relatively low, it can apply for quarterly or semi-annual VAT declaration.
Characteristics and requirements of UG limited liability company:
1. You can register a company from 1 euro! It is recommended that the minimum amount of registered capital when setting up a company is not less than 5,000 euros, because it seems that the company has sufficient financial strength.
2. According to the German company law, every year UG must draw 25% of the profit of the year as capital reserve. This obligatory withdrawal of profits is only relieved after the capital reserve has reached EUR 25,000. In addition, when the company capital reaches 25,000 euros, the company can apply to change its form to a GmbH.
3. One person can set up a German company. There is no nationality restriction for legal persons. Shareholders bear limited liability for the company with the amount of capital contribution, without personal liability.
4. The legal person, shareholder and general manager of the company can be one person.
5. In the first two years of the company's establishment, it needs to keep accounts and declare taxes every month, and prepare annual financial reports and tax declarations every year. Two years after the establishment of the company, if the monthly VAT amount is relatively low, it can apply for quarterly or semi-annual VAT declaration.
Since 2008, in order to reduce the threshold for establishing a German company and encourage entrepreneurs, the German government has hereby added another simple limited liability company form of GMBH limited liability company, referred to as "UG". The threshold for such companies is low and there is no registration. Capital requirements, convenient procedures, suitable for companies with low initial investment funds.
Documents required for company establishment in Germany:
1. Scanned copy of shareholder passport & personal address of shareholder
2. Notarization of power of attorney for our remote agency: We issue a power of attorney, and the legal person needs to bring his passport and power of attorney to the German embassy in China for notarization, and express the original document to us.
3. German company name: add UG or GmbH suffix to the company name (it is recommended to use German as the main name, and we can replace the name)
4. The company's business scope: describe the specific business purpose and business scope of the German company, specific to the product category
5. Amount of registered capital of the company: UG company recommends 5,000 euros, GmbH requires 25,000 euros, and only needs to remit 50% (12,500 euros) when registering the company, and remit after the bank account is opened
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