Why should I establish my company in Germany?
The phase right after selecting the best location for your business in Germany is the company formation. Establishing the company might not always be the most necessary thing or the best solution but it is usually recommended to non-EU citizens who would also like to get the residency or partner up with other shareholders in Germany. In other words, this is the most efficient way to own a business while you still don’t have an identification as a German citizen.
Can I get Germany residency by registering a company in Germany?
You should also consider the opportunity cost as a reason why it makes sense to start your business with a company. Acquiring residency usually takes several months. for an investor, this maybe means losing a project. For this reason, it is important for her/him to be able to get the partial or full ownership of the business before he can legally reside in Germany and this is one of the best methods.
Especially for the businesses with high opportunity costs, this is the best time to form the company. Forming company at this phase will also allow you to start your business even before you obtained your residency. For some businesses that not require any complicated license, this could be a great strategy because the business owner can proceed to get his residence permit once he is sure that his business will take him somewhere and is financially good enough to support a family life.
How to register company in Germany
As many other countries, registering company in Germany consists basic steps, including initial inquiries on the business name and activities, preparation the company’s draft of contract ( the draft of formation deed and article of associations), finding a business address (in some cases the residence address in Germany), application for opening a business bank account which could be tricky for foreigner citizens outside of the European union, application for the commercial register, application for acquiring the VAT and tax ID for your company. Having done, you should be able to get your business license (Gewerbe) to be able to operate your business. Also for employing a person you need to get an operation number (Betriebsnr).
How much funds should I have to register my company in Germany?
As you may have noticed, there are many type of legal entities but the most popular ones are:
- UG (entrepreneurial company) which does not need much of a nominal capital
- GmbH (limited liability company) which calls for at least 12,500 € of a share capital
- AG (stock corporation) which is really not recommended for any one especially the one who wants to start as a start-up
- GBR (company constituted under civil law) in which case two or more partners make agreement but without being registered in a commercial register
Depending on the type of business and the objectives behind it, one should choose the right legal format for his business. You may contact us to better select your legal form.
Germany Company Registration Consultant
Our team at Wise Business Group will help you select the best legal format for your business which is suitable for your residency and business at the same time. Contact us for more information.