It is common knowledge that running a business is an arduous process requiring perseverance, financial investment, professional knowledge and technical skills. One of the main challenges facing entrepreneurs in this regard is, of course, bureaucracy.
IQ Decision UK can help you overcome that challenge and open a business in a jurisdiction of your choice. Our experts have years of experience registering companies around the world. They are always on standby to provide you with assistance in:
- choosing the must suitable busines organization form;
- choosing a name for your company;
- determining the purpose and nature of your company's activities;
- determining the number of founders and the size of share capital;
- determining the most suitable way of distributing profits between founding members;
- developing rules for reorganization and liquidation of your company;
- identifying the governing bodies of your company.
Establishing a Company in Germany: Types & Requirements
Any person or legal entity can open a Limited liability company - GmbH (Gesellschaft mit beschränkter Haftung) or Joint-stock company – AG (AktienGesellschaft) in Germany. Founders of both types of companies can be German citizens and foreign nationals.
Let's look at the main requirements for establishing an AG in Germany:
- authorized capital of 50,000 euros with a minimum participation share of 1 euro;
- founders can be one or several individuals and legal entities that do not bear personal responsibility;
- after a company is entered into the commercial register, it bears only limited liability;
- contributions of individual shareholders may be different in size but must be at least 100 euros;
- a registration fee of EUR 7,000 must be paid.
Let's look at the main requirements for establishing a GmbH in Germany:
- may be set up by one or several persons;
- submitting a parent company's constituent documents (along with certified translations) to the regulator;
- obtaining permission from the Ministry of Economics;
- a company's liability is limited to its capital;
- authorized capital of GmbH must be at least 25,000 euro;
- establishing a company by more than one person requires paying a fee of 12,500 euros and paying the balance over the following year;
This legal form is most suitable for foreign entrepreneurs; hence, is most often used by foreign investors seeking to open a representative office in Germany.
Please note that our experts can help you register the following types of entities in the Federal Republic of Germany:
- Limited Liability Company (GmbH)
- Limited Liability Entrepreneurial Company (mini GmbH)
- Joint-Stock Corporation (AG)
- Partnership Limited by Shares (KGaA)
Opening a Company in the United Kingdom
The establishment and operation of companies in the UK is governed by the Companies Act 2006. Those seeking to register a company in England must ensure compliance with the following requirements:
- registering a business in the UK;
- getting a National Insurance (NI) number;
- obtaining the required licenses and/or permits;
- registering with HM Revenue and Customs (HMRC);
- selecting a company name.
Foreign entrepreneurs can establish companies of the following types:
Private company limited by shares or private limited company (LTD) - a company's share capital is divided into shares, with shareholders' liability being borne within the unpaid portion of the shares owned by them. Such companies cannot offer shares for sale to an unlimited circle of persons. Please note that LTD is the most common legal form of legal entities in the UK.
Private company limited by guarantee - its shareholders' liability is limited to the amount they agreed to contribute to a company's assets in the event of its liquidation.
Private unlimited company - a company may or may not have share capital, while the responsibility of shareholders is unlimited.
Public limited company (PLC) - a company's authorized capital is divided into shares. These shares can be sold publicly and contributed to a company's assets in the event of its liquidation (limited by guarantee).
Please note that IQ Decision UK can help you establish and run a company in more than 124 jurisdictions, including the United States of America, Canada, Japan, Australia, Russia, China, EU members, Caribbean countries, Southeast Asian countries, Middle Eastern states and Latin America.
We can also assist you with complex commercial transactions, mergers and acquisitions, shareholders agreements, buy-sell agreements, purchase and sale of shares, liquidation procedures and many more.