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Company registration in Germany

Gateway Germany

Ease of Doing Business rank

#22 out of 190 countries around the globe

Index of economic freedom

#27out of 186 countries the globe

International Tax Competitiveness Index rank

#15out of 36 countries the globe

Why Germany

Germany is a great country for technology and manufacturing companies. With a strong economy, it is considered an economical capital of the European Union with a highly qualified labor force. Doing business in Germany may be expensive, but on the other hand, it can guarantee the sustainable growth of business in the long run. German enterprises are highly respected all around the globe.

Item

Rate

Value Added Tax (VAT)

19%

VAT Reduced rate

0% - 7%

Corporate tax (tax on retained earnings)

15%

Solidarity surcharge

5.5%

Municipal trade tax (Gewerbesteuer)

7-17%

Capital Duty

Land Tax

1.5-2.3%

Tax on dividends for individuals (approx.)

25%

Individual income tax (tax on salary)

14-45%

Payroll tax

Social Security Contribution

18.7%

Minimum salary (per hour)

9.35 EUR

Minimum salary per month (brut)

1,584 EUR

Average rental price for class A office spaces/ per 1 sq. meter

32.7 EUR

Share capital requirement for LLC

25,000 EUR

Share capital requirements

Main legal forms in Germany are limited liability company (LLC), locally named as Gesellschaften mit beschränkter Haftung (GmbH) and Public Limited Company (PLC), locally named as Aktiengesellschaften (AG). LLC and PLC have different minimum share capital requirements. For LLC it is 25,000€ and for PLC – 50,000€. However, only 50% of it must be paid upon incorporation.

Timeline to set up a company

Depending on the method is used to set up a company, the time required for the process may vary. If a private person establishing a company is a non-resident, the formation process might be done using a power of attorney or by physical presence:

By the PoA: 3-4 weeks after all the documents are received
By physical presence: 2-3 weeks

Business climate

Germany is one of the largest economies in the world and being the 3rd country in export, it has a worldwide business allure. Since the German market counts 83 million+ people it also holds a great domestic reach what attracts top leading enterprises from all industries from around the globe. Germany is an investor-friendly market and the world leader in innovations, therefore the trademark of “Made in Germany” is of enormous value. Both for its greatness and location in the heart of the European Union it is Europe’s logistics point.

At the same time, doing business in Germany might be complicated by its social market economy which means that Germany embraces the spirit of free enterprise, but it is tempered by numerous controls and legal measures. It could be seen on German taxation system with a high tax rate in comparison to other EEA countries.

Customs duties

As Germany is a member of the EU, custom duty rates are decided by TARIC - the common customs tariff in the European Union. Custom Duty rates are based on the value of the goods and dependent on the type and the country of origin. Imports from EFTA countries, Switzerland and EU candidates are generally free of duty. Usually, duty rates stay between 0% and 10%.

2Free Trade Zones

3Labor force

4Business migration opportunities

Business environment in Germany makes it a good place for all kinds of business. Despite the tough taxation and legislation, Germany with its place in the heart of European Union and strong economy is a great place to start a business with ambition to grow all over Europe. Our team can help you to establish and maintain business in Germany. We would be glad to become a one stop shop for your needs and assist with the entire company formation process including bank account opening and many other related services.

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What is included in the company formation service package

Company formation

Full turn-key assistance with setting up a company in EU by Power of Attorney (remotely) or by physical presence including such steps as verification of the company name; preparation of individual AoA, coordination of all necessary legal formalities and handling of the company entry into the commercial register.

Bank Account

The issue of opening a corporate account in the Bank for the company where non-EU residents are acting as directors and shareholders is still urgent. Our services for opening an account include an analysis of your business model, risk assessment and selection of the optimal Bank in the EU, collection and preparation documents package (in accordance with the requirements of the chosen Bank), representation of your interests in negotiations (if necessary).

Registered and Virtual Office

In order to set up a company in EU jurisdiction, the address of registration and virtual box services are required. In the frames of our solution, we provide an address in EU and assist with mail forwarding and other incoming physical correspondence from governmental authorities, Banks and third parties. Upon request, we could assist with EU phone number and receptionist answering on the calls.

Legal Templates

As soon as the company registration procedure is fully completed, the question of starting operating activities becomes relevant. In order to accelerate the process and save money on local advisors, we will provide all the necessary legal document templates drafted in accordance with EU law (NDA, employment agreement, service agreement, policies etc.)

Tax number obtainment

Registration of your entity within EU tax authorities and acquisition of VAT number and internal tax number (if applicable)

Dedicated consultant

Our aim is to make the moment of launching your business maximum simple, so it would be possible to concentrate on important matters and operate efficiently. Therefore, you will be provided with an individual consultant who will lead you through the entire process of the company formation and further will be assisting with other business-related issues and unique needs

Auxiliary services

Accounting and Taxation

Legal entity registered in EU obliged to conduct bookkeeping records and submit reports to the state authorities (Income tax and social security contribution report on employees, VAT reports on a monthly basis and annual reports). Jointly with our partners, we will be happy to assist your company on this matter and develop an optimal taxation model individually under your business.

Trademark registration

Registration of trademark within European Union Intellectual Property Office (EUIPO). Word mark, figurative mark, figurative mark containing word elements, shape mark, shape mark containing word elements, position mark, pattern mark, single color mark, sound mark, motion mark, multimedia mark, hologram mark.

Local Director

The need for local hired director often in demand across our Clients since it resolves issues with Bank compliance (if any arise) and makes it possible to conduct remotely operating activities more efficiently. We will carefully analyze your needs and weigh all the risks in order to conduct a search for a suitable candidate for the position.

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