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Today anyone who has the necessary funds and desire to open their own business in Germany can open their business. Despite the high competition and a difficult tax system, the number of those wishing to register a company on federal lands is not decreasing. The Germans conducted research, and it turned out that more than half of all business in Germany is owned by foreign citizens. 

Of course, foreigners take risks when opening their own business, but this risk is usually justified. A transparent tax system, support from the state and the banking sector in business development, the high purchasing power of Germans and their closest neighbors, and the absence of corruption are of great importance for the creation or development of the entrepreneurial activity. In a state based on the rule of law, such as Germany, it is easier to develop your business, since the laws work for everyone in the same way, without any selectivity. 

Benefits of starting a company in Germany 

Opening a company in Germany has many significant advantages, among which are the following: 

  • Your company will be seen as a reliable business partner; 
  • The owner of the German company uses the German trademark accordingly; 
  • Machinery, equipment, and other goods are imported into the CIS duty-free as authorized capital; 
  • The contributions of the German company to enterprises in the CIS are protected as investments. It is possible to open accounts, have credit cards from German banks, and use checkbooks; 
  • Germany refunds VAT; 
  • A real opportunity for the founder of the company and his family to apply for a residence permit in Germany, eventually obtaining German citizenship; 
  • In any of the EU countries, the owner of a company in Germany can open a branch; 
  • Business visas in Germany can be obtained multiple times; 
  • For companies, preferential insurance is provided; 
  • You can receive subsidies in Germany; 
  • Access to lending by German banks. 

Company registration 

There are several types of companies in Germany. 

Registration of a limited liability company in Germany (GmbH) 

Today GmbH is the most frequently registered company in the Federal Republic of Germany. The purpose of creating a society can be both entrepreneurial and non-entrepreneurial activities. It is the firm that acts as a legal entity and bears full responsibility for its activities. 

The authorized capital can be not only monetary but also property investments. The minimum share capital of GmbH is 25,000 euros. The property of the organizers GmbH is reliably protected. The organizer of the company can be either one person or more. Both foreigners and German citizens registering this legal form of a company have equal rights. 

Registration of Mini-GmbH in Germany  

If you want to open your own company in Germany, but there are not enough funds to register a GmbH, then the best solution would be to register a mini-GmbH. As mentioned earlier, creating such a company does not require large funds; it is enough to have 1 euro. But you need to know that at the end of the year of operation of the company, 25% of the profit should remain in the reserve fund. 

It is worth remembering that in the name of the company (mini-GmbH) you must always keep the prefix “haftungsbeschränkt” (limited liability), thus explaining to your business partners which company you will have to deal with. If the entrepreneur realizes that he is ready to expand the company, then at any time the authorized capital can be increased to twenty-five thousand euros and without much difficulty transform the mini-GmbH into a full-fledged GmbH. 

Registration of a joint-stock company in Germany 

All responsibility for the conduct of entrepreneurial activity lies only with the joint-stock company, and not in any way with its organizer (organizers). An enterprise can be created by one person. The authorized capital is in shares. A joint-stock company is most often chosen for more serious business tasks than GmbH, and, of course, if the planned activities of the company are closely related to stock exchanges. 

Registration of GmbH & Co. KG in Germany  

It is a company that combines a limited liability company and a limited partnership. Two separate organizational and legal forms are registered, but as a result, they work together. GmbH & Co. KG is chosen when a large number of limited partners make monetary contributions to the development of the business but none of the participants wants to take responsibility for the company’s obligations. 

There is no prescribed amount of the authorized capital. However, since the GmbH is entrusted with full responsibility for entrepreneurial activities, it can be assumed that the amount of the authorized capital should not be less than 25,000 euros. 

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