Benefiting from a strong economy, Germany has become a base for attracting foreign investors and entrepreneurs. Therefore, many entrepreneurs from all over the European Union or even outside of this Union want to start their business in this country. In this article from Wise Business Group, we will examine the conditions for company formation in Germany, especially for foreign founders.
Company formation in Germany involves several steps and requirements. It doesn’t matter if you are a non-resident of Germany or a non-EU national. In any case, you must comply with these requirements and go through the relevant steps.
A large part of Germany’s reputation is due to its strong and stable economy, which makes it an attractive destination for entrepreneurs and investors. In the following, we will mention the essential requirements and steps for company formation in Germany. Also, we will explain the different conditions of company registration for people who are not residents of Germany or EU citizens.
To be able to establish your company in Germany successfully, you need to fulfill some requirements as follows:
Before you start the process of officially registering your company in Germany, you must clearly define your business concept. A business concept includes determining your business activities, target market, and business model. Conducting market analysis and research is crucial at this stage, as it will help you ensure that there is a demand for your products or services in Germany.
You must choose the appropriate legal structure for your business. The most common legal forms for companies in Germany are:
Choose a unique name for your company in Germany that is also legally acceptable. Checking the availability of the desired name at the local trade register (Handelsregister) in Germany is necessary. In addition, our team can assist you in choosing a suitable legal form and unique name for your business in Germany.
Having a registered office or business address in Germany is mandatory. This address will be used for official correspondence.
If setting up a GmbH, you must provide a minimum share capital of €25,000. You should deposit this share capital into a German bank account before starting the company registration process in Germany. Each of the legal forms can have different capital requirements.
Draft the articles of association (Gesellschaftsvertrag) for your company in Germany and then notarize them. Such a document can outline the structure, purpose, and operating rules of your business in Germany.
In general, the following steps are crucial for the establishment and registration of a company in Germany:
Now, the question is, is it possible to register a company for people who are not residents of Germany?
People who are not residents of Germany can register and set up their company in Germany. They are generally required to comply with the requirements and procedures as residents. However, they should pay attention to more items as follows:
Non-resident founders may be required to appoint an authorized representative (Inlandsvertreter) for their company in Germany. This person must be a resident of Germany and take responsibility for legal and tax matters on behalf of the company.
People who do not live in Germany and are citizens of countries outside the EU may need a visa or residence permit to live and work there. Obtaining these permits for their authorized representative is probably necessary, as well.
Non-residents probably face stricter requirements when opening a business bank account in Germany. We advise them to consult banks specializing in providing services to non-resident clients.
Non-EU citizens may face more challenges when establishing and registering a company in Germany. Some possible challenges are:
Non-EU nationals must obtain the appropriate visa and residence permit in Germany to live and work legally. Obtaining such licenses may have specific requirements like providing a solid business plan or proving financial stability.
Our experts at WBG can accompany you in preparing a convincing business plan approved by the immigration office in Germany. Contact us to explain the requirements and golden tips for writing a professional business plan in Germany.
Some legal company forms in Germany, such as GmbH, can come with stricter requirements like higher minimum share capital for non-EU nationals.
Non-EU citizens must appoint an authorized representative for their company in Germany who is both a German resident and an EU citizen. This is because having EU citizenship is necessary for managers or managing partners in some legal forms in Germany.
Non-EU nationals are required to obtain a work permit for themselves and any non-EU employees they hire in Germany.
Proficiency in the German language is not a strict requirement to establish and register a company in Germany. However, it can be beneficial when dealing with legal documents, authorities, and clients in Germany.
It is better to consult legal and business experts to check the complex requirements and regulations of establishing and registering a company in Germany. In particular, you should consult with experts if you are a non-EU national or a non-resident. You can also seek help from organizations such as chambers of commerce, business development agencies, or legal advisors specializing in international business. Our group can accompany you in a company’s establishing and registering process in Germany.
Another thing you should pay attention to is to constantly update your information regarding any changes in German business laws and regulations. In this case, you can ensure that all your company’s activities comply with the relevant laws.
To establish and register a company in Germany, you must meet various requirements:
Then, you have to go through different steps such as choosing the appropriate legal form, preparing a business plan, notarizing documents, registering a business, registering for taxes, obtaining permits, opening a business bank account, and obtaining various insurances in Germany.
Non-residents in Germany may need to appoint an authorized representative, obtain a visa or residence permit, and open a business bank account at banks that provide services to non-resident clients.
The situation is more complicated for non-EU nationals. They must meet particular requirements for obtaining a visa, residence, and work permit, choosing a legal form, and appointing an authorized representative. Fluency in German is also beneficial for them.
You can contact us via WhatsApp or email to learn about the complexities of company registration in Germany. Our consultants will guide you with years of experience and expertise in company registration and setting up in Germany. We are with you to set up your company in Germany with minimum time and cost.
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