Incorporation of GmbH / German GmbH
The German GmbH is comparable to the Dutch BV and the UK Ltd.. The abbreviation GmbH stands for “Gesellschaft mit beschränkter Haftung”.
What do we need for the formation of the GmbH:
- Passport / ID of the future directors and shareholders;
- Document showing the private address of the directors, for example a recent energy bill, tax assessment or extract from the Municipality;
- Desired name of the GmbH. This must be submitted to the Amtsgericht for approval;
- Target description of the GmbH;
- Address of the GmbH in Germany;
Based on these documents, we prepare a draft deed of incorporation, which is approved by the German notary. You will receive this concept in concept within 1 day (by email).
After your approval, an appointment will be made with the notary and the bank in Germany. After the deed of incorporation has been signed and the “Stammkapital” has been transferred to the GmbH account, the GmbH is registered by the notary with the German commercial register.
A GmbH has a minimum capital of 25,000 euros, at least half of which must be deposited upon incorporation, so on balance 12,500 euros.
It is also possible to set up a mini-GmbH or a UG called (“Unternehmensgesellschaft mit beschränkter Haftung”), whereby the minimum required capital is only 1 euro. In return, 25 percent of the profit must be reserved each year to build up capital. As soon as an amount of 25,000 euros is saved together, the UG is automatically converted into an ordinary GmbH.