If you want to establish a company and start a business in Germany, you should first know what types of companies are common in this country. How much capital do you need to set up each of them? Furthermore, what are the legal and business processes for company formation and registration in Germany? In the following, we will talk about a subsidiary company establishment in Germany and answer your related questions.
Formation of a subsidiary company in Germany
Any company which is to operate in Germany needs to be registered to be legally authorized to function. There are a combination of legal and business procedures that shall be conducted during company formation in Germany.
We are able to form your legal entity in a shortest amount of time (almost 21 working days).
There are different types of business entities in Germany including, partnership, cooperative, association, and companies. But, the most common type of subsidiaries in Germany are as follows:
- Mini- GmbH (UG) (Entrepreneurial Company with limited liability) Minimum capital required: 1 Euro,
- GmbH (Limited liability Company) minimum capital required: 25,000 Euro,
- AG Public limited company (Stock Corporation) Minimum capital required: 50,000 Euro.
Dependent branch office
Dependent branch office (unselbständige Zweigniederlassung) is a subordinate department of the head office company and does not have any autonomy from it.
It focuses on maintaining contacts and initiating business in Germany. The dependent branch office is not able to independently participate in the general business transactions of the head office. It performs support and implementation-related tasks without having any individual business discretion. Also, is entirely dependent on the head office.
Invoices have to be made out in the name of the head office company. An individual company name cannot be used.
You are able to register all three above-mentioned companies based on your interest and business target.
The independent branch office in Germany
The independent or autonomous branch office (selbständige Zweigniederlassung) meet those tasks that are beyond implementation and support-related tasks. Although it is dependent upon the head office company at the internal level but engages in business activities independently. However, the foreign head office company is liable for the business transactions concluded by the branch.
The main features of the independent branch offices in Germany are as follows:
- Management with freedom to act according to their own judgement (i.e. with full power of attorney and power to contract),
- Own capital resources and bank account,
- Separate accounting.
An autonomous branch office can use its own name affix but the company name of the head office must also appear including its legal designation (for example: XY Ltd., branch office, Cologne).
Company formation and registration in Germany
You can contact us for company formation and registration in Germany. Our consultants will guide you with the benefit of expertise and many years of experience in this field. We are by your side to establish your company in Germany as soon as possible, in an optimal way and at a reasonable cost.
