Features of registering a business in Germany

Residents and those with a residence permit in Germany, as well as foreign citizens without a residence permit may establish a company in Germany. Foreign citizens are willing to open a business in Germany since this country is a prestigious jurisdiction, a developed state with stable political system that is loyal to entrepreneurs.

GMBH (Gesellschaft mit beschrankter Haftung, or limited liability company) is the most popular legal form in Germany. Such a company is an independent legal entity with at least one founder and director of any nationality. The founder of the company may be a foreign legal entity.

When opening a GMBH, the minimum authorized capital is 25 thousand euros. The capital may be paid either in a lump sum or in instalments. The first instalment of 12,500 euros must be made during the registration, the remaining amount may be paid in a second instalment within a year after the opening a company. After completing the registration, the authorized capital can be used for the needs of the company, i.e. to pay for employee services, rent, purchase of goods, etc.

Since GMBH is a limited liability company, the company’s liability is limited exclusively to its capital.