UG Company in Germany , Wise Business Group

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UG company in Germany

Entrepreneurial Limited Liability Company, or UG, is a popular legal form in Germany. Near ten percent of the companies that entered the commercial register in Germany have the UG legal form. Here at Wise Business Group, we will give you essential information about the required capital, advantages, and liability of the UG Company in Germany.

Entrepreneurial Limited Liability Company (UG) in Germany

An entrepreneurial limited liability company or mini-GmbH, also known in Germany as UG, Unternehmergesellschaft, or Haftungsbeschränkt, is not an independent legal form, but rather a GmbH with the difference that the amount of initial capital required for the final registration of the company is less than 25,000 euros. It means it is possible to establish limited liability companies with a minimum capital of 1 euro in Germany.

The company is always obliged to keep a quarter of its annual net profit until it reaches the amount of 25,000 euros, which is the minimum capital for GmbH formation, to compensate for the initial capital in this legal form. The collected cash capital, 25,000 euros, can later be converted into partners’ shares, in which case the mini-GmbH is officially converted into the full GmbH.

Read more at Wise Business Group: Which one is better? A GmbH or UG in Germany?

Key advantages of a UG in Germany

UG is a limited liability legal form, so its key advantage is that the shareholders are not liable with their private assets.
Its establishment is relatively easy and fast. Usually, setting up duration for a UG takes around 4 to 8 weeks.
A later conversion of the UG into a GmbH is possible.

Read more: All you need to know about the limited liability company (GmbH) in Germany!

Rules and obligations

Mini-GmbH and GmbH companies have a standardized guideline under the German Limited Liability Company Act called the Model Article. You must register and sign this article (statute) in the notary office. Except for the minor cases mentioned in the article of each legal form, mini-GmbH companies are subject to the same responsibilities and rules as standard GmbH companies.

Information on UG or mini-GmbH companies at a glance

The entrepreneurial company (UG) has existed since 2008.
It is a particular form of limited liability company (GmbH), not an independent legal form.
It is also colloquially called a mini-GmbH.
The required capital for establishing a UG in Germany is 1 euro.
Shareholders must keep one-quarter of the company’s annual net profit to compensate the initial capital.
By providing 25000 euros, you can convert it to a GmbH.

Company formation in Germany

You can contact us to receive advice on establishing a company in Germany. We can help you with the appropriate legal form selection, business registration, commercial register entry, and accounting and tax affairs in Germany. If you have any questions, do not hesitate to contact us.

If you fill out the form below and send it to us, our advisors can arrange a consultation.

Company Formation

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- UG (Entrepreneurial Company)
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Alireza M. Nejad

19:00 04 Apr 22

A highly professional and reliable team. We’ve had a wonderful experience and can only recommend Mr. Hadizadeh and his team.

Mania Derakhshan

12:39 27 May 20

I used the phone consultation of Mr. Hadizadeh and he patiently answered all my questions and helped me.They are very kind that I am going to sign a contract with this group to continue my path.i highly recommend Mr. Hadizadeh and his team.

Shahrooz Mehtar

13:50 29 Mar 20

We are very pleased to be acquainted with Mr. Hadizadeh's organization and with his help we have been able to establish our trading company in Germany.His professional demeanor, personality, and good teammate have made it easy for us to do so even under the tough conditions of today's world and Iran.

Abolfazl Nadi

12:46 28 Mar 20

I am very happy for having their advise about opening a new GmbH and its employees aspects. I highly recommend them.

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02:46 01 Feb 20

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13:35 28 Jan 20

I am happy to be in touch with Wise Business Group. Follow-up, admirable guidance and compassion are visible in their service, and I recommend this group to friends looking to immigration or start a new business in Germany.

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14:46 10 Oct 19

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10:17 20 Sep 19

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22:25 18 Sep 19

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13:28 30 Jun 19

I would like to divide their services into 2 parts, prior to entrance visa and after entrance visa.Regarding the services prior to entrance visa, their business plan preparation were well executed and according to BP standards. In terms of urgency of BP preparation, they put effort and energy on their job. Regarding preparation of documents, they informed about important points and documents to be prepared.Regarding the services after entrance visa, as I am at the beginning of them, I would prefer to comment after finalization of them.