Germany is divided into sixteen independent states. Berlin, the capital of Germany, has a population of 3,7 million people. Germany borders on 8 countries, such as Holland, Belgium, France, Luxembourg, Switzerland, Austria, Denmark, Poland & the Czech Republic. Germany’s official language is German; the national currency is the Euro. The key sectors of the economy are agriculture, industry, energy, transport & finance.
Those seeking to register a German company, you will need to choose the most suitable business organization form, namely:
- LLC (GmbH).
- JSC (AG).
Opening an GmbH in the Federative Republic of Germany requires:
- a share capital of 25 thousand euros.
- founders (minimum 1; no residency requirements; if there’s 2 or more founders, only 50% of an authorized capital must be contributed);
- a director (minimum 1);
Establishing an AG in the Federative Republic of Germany requires:
- minimum share capital of fifty thousand euros (twenty five percent is paid at the time of registration);
- shareholders (minimum 1);
- directors (minimum one BoD member & three members of the supervisory board).
Opening a German company requires:
- having a legal address;
- having statutory documents;.
- having a unique name;
- describing the type of business activities;.
- having a charter;
- having a tax ID;
- opening a corporate account in the Federative Republic of Germany.
Registering a company in the Federative Republic of Germany normally takes up to 2 weeks.
A corporate tax rate is from 14% to 17%. At the federal level, an income tax of five point five percent may be levied. Municipal & commercial taxes are levied at a rate of fourteen & seventeen percent (determined by the relevant government agencies). The general combined tax rate (i.e. corporate, trade & solidarity tax) is between thirty to thirty three percent.
Maintaining & submitting financial reports are mandatory. An annual audit is required.
Considering opening a business in Germany? Need advice on company registration in Germany? Why not contact IQ Decision UK?