Is it possible to set up a company in Germany and run it from abroad?
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June 5, 2022One of the most common questions that founders in Germany often face is whether it is legally possible to reside outside Germany and have headquarters in Germany? Can they offer their company services in another country outside of Germany?
The answer to this question is complicated and depends on several factors. The most important influential factors in this regard are the legal status of the company in Germany and the laws of the considered foreign country.
Establishing a company in Germany and running it from abroad
To be able to set up a company in Germany and run it from abroad, the situation is different depending on whether you have legally started a corporation or a partnership. GmbH or UG are some of the corporation types in Germany, and GbR or GmbH & Co.KG are some types of partnerships.
Headquarters and registered office of a company in Germany
The head office or headquarters of a company in Germany is where management conducts all the business activities. The registered office of a company in Germany is a place that is legally entered into the commercial register as a registered office.
In the case of a partnership in Germany, the headquarters must be the same as the registered office, while for a corporation, the two offices can be distinct.
Therefore, if you want to manage your business from ab, partnership legal forms in Germany will not be good options. However, it is possible to set up a German corporation with headquarters abroad.
Establishing a company in Germany and providing services abroad
A German company headquartered in the European Union can offer its services throughout the EU and is recognized as a German company by all EU member states.
However, a German company headquartered outside the European Union will not usually be recognized as a German company. The recognition of this company outside of Germany depends on the respective country’s laws. It is better to consult the foreign country separately in this regard.
