COREDO > Company Formation in Germany

Company Formation in Germany

Introduction

Germany is the largest economy in the European Union and one of the most attractive jurisdictions for doing business. The country provides a stable legal environment, well-developed infrastructure, and access to the EU single market with a population of over 440 million people. Foreign investors enjoy equal conditions with local entrepreneurs, and the legal system guarantees the protection of property and contractual relations.

COREDO has been operating since 2016, providing a full range of services for company formation in Germany for foreign entrepreneurs — from selecting a legal form to tax registration.

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Cost of the service
from 3 840 EUR

Advantages of Company Formation in Germany

Germany offers a number of significant advantages for business. The country’s economic and political stability creates a predictable environment for long-term planning. Germany has concluded double taxation agreements with more than 80 countries, making it a convenient base for international operations. In addition, entrepreneurs can take advantage of a wide range of government grants and subsidies, especially for innovative and environmental projects. A highly qualified workforce, well-developed transport infrastructure, and a reliable banking system complete the picture.

Types of Companies in Germany

Several legal forms are available to foreign investors in Germany.

GmbH (Gesellschaft mit beschränkter Haftung)

Is a limited liability company. The minimum share capital is EUR 25,000, of which at least EUR 12,500 must be contributed at incorporation. It is the most common form for medium and large businesses. A minimum of one founder is required — an individual or legal entity of any nationality.

UG (haftungsbeschränkt)

Is a simplified form of GmbH designed for small and medium-sized businesses. The minimum share capital starts from EUR 1. The company is required to reserve 25% of its annual profits until the capital reaches EUR 25,000, after which it can be converted into a GmbH.

AG (Aktiengesellschaft)

Is a joint-stock company with a minimum share capital of EUR 50,000. It is suitable for large-scale projects and companies planning to attract investment or go public.

OHG (Offene Handelsgesellschaft)

Is a general partnership with unlimited liability for the partners. A minimum of two partners is required.

KG (Kommanditgesellschaft)

Is a limited partnership with at least one general partner and one limited partner.

Foreign companies can also establish a branch office (Zweigniederlassung) or a subsidiary (Tochtergesellschaft) in Germany. A branch is not an independent legal entity and operates on behalf of the parent company, whereas a subsidiary is registered as a separate German legal entity with its own liability.

Registration Procedure

Company formation in Germany involves the following main steps:

Preparation of incorporation documents

drafting the articles of association (Gesellschaftsvertrag) in German, specifying the legal form, capital amount, shareholder interests, and management authority.

01

Notarial certification

all incorporation documents are subject to mandatory notarial certification. Remote certification through a notary with a power of attorney is possible.

02

Opening a bank account

depositing the share capital into the company’s current account at a German bank.

03

Registration in the Commercial Register (Handelsregister)

filing documents and a bank confirmation through the notary with the local court.

04

Registration with the Trade Office (Gewerbeamt)

obtaining a trade licence (Gewerbeanmeldung).

05

Tax registration (Finanzamt)

obtaining a tax number and registering for corporate tax and VAT purposes.

06

Registration in the Transparency Register (Transparenzregister)

disclosure of information about the ultimate beneficial owners.

07

Required Documents

The following documents are required for company formation: the articles of association (Gesellschaftsvertrag), passports or identity documents of all founders, proof of a registered office in Germany, a bank confirmation of share capital deposit, and an application for trade registration (Gewerbeanmeldung). All documents in a foreign language must be translated into German by a certified translator and notarised. For foreign founders, an apostille or legalisation of documents may also be required depending on the country of origin.

Registration Timelines

With a complete set of documents, registration takes 10 to 20 business days. Including preparatory stages — notarial certification, opening a bank account, and document translation — the total process may take up to 30 days. COREDO coordinates all stages, helping to minimise timelines.

Taxation

Germany’s tax system consists of several levels. Corporate tax (Körperschaftsteuer) is 15%, plus a solidarity surcharge (Solidaritätszuschlag) of 5.5% of the tax amount, resulting in an effective federal rate of 15.825%. The municipal trade tax (Gewerbesteuer) varies from 14% to 17% depending on the city — for example, rates in Munich and Frankfurt are higher than in smaller towns. The combined effective tax burden ranges from 29% to 33%.

The standard VAT rate (Umsatzsteuer) in Germany is 19%, with a reduced rate of 7% applicable to food products, books, periodicals, and certain other categories. Companies whose annual turnover does not exceed the established threshold may benefit from the Kleinunternehmerregelung regime and be exempt from charging VAT.

Germany has concluded double taxation agreements with more than 80 countries, allowing for tax optimisation in international operations. The German government plans a phased reduction of the combined corporate tax rate to 25% by 2032, starting from 2028, which increases the long-term attractiveness of the jurisdiction for investors.

Cost of Services

The cost of COREDO’s GmbH formation packages in Germany: BUSINESS — EUR 3,840 + VAT (full formation from A to Z, individual Articles of Association, fast-track notarisation without physical presence, tax/VAT/EORI numbers, Commercial and Transparency Register, bank account assistance, max. 5 participants); ENTERPRISE — EUR 7,440 + VAT (adds: deadline calendar, introduction to 3 tax advisors, company stamp, contract templates, quarterly strategy sessions for 1 year, embassy/consulate appointment coordination, max. 100 participants).

UG packages: BUSINESS — EUR 3,360 + VAT, ENTERPRISE — EUR 6,960 + VAT (same scope). Physical presence in Germany is not required — notarisation can be completed abroad or at a German embassy.

Third-party costs (not included): notary from EUR 380 (GmbH) / EUR 250 (UG), Commercial Register approx. EUR 300, Trade Office EUR 35–60. Registered address (virtual office, Nuremberg): EUR 2,880/year. Timeline: document preparation 1–2 weeks, Commercial Register entry 1–3 weeks, tax registration 2–4 weeks.

COREDO's Methodology

The company formation process in Germany with COREDO includes four main stages. At the first stage, our specialists conduct a consultation: they analyse your business objectives, recommend the optimal legal form, and prepare an action plan. At the second stage, we prepare all necessary documentation — articles of association, powers of attorney, translations — and arrange notarial certification. The third stage involves filing documents with the Handelsregister, Gewerbeamt, and Finanzamt. At the final stage, you receive a fully registered company with a tax number, ready for business operations.

Comparison of Legal Forms

Form	Min. Capital	Founders	Liability	Suitable For
GmbH	EUR 25,000	from 1	Limited	Medium and large businesses
UG	from EUR 1	from 1	Limited	Startups, small businesses
AG	EUR 50,000	from 1	Limited	Large-scale projects, IPO
OHG	None	from 2	Unlimited	Partnerships
KG	None	from 2	Mixed	Investment structures

Jurisdiction-Specific Features

Germany does not impose residency requirements on founders — a company can be registered by an individual or legal entity of any nationality. However, it is recommended that the managing director (Geschäftsführer) be a resident of the EEA, as this simplifies interaction with government authorities and banks. For certain types of activities, such as banking, insurance, and construction, a special licence is required — in particular, financial activities are regulated by BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht).

All companies registered in Germany are required to maintain accounting records in accordance with German standards (HGB — Handelsgesetzbuch). Annual financial statements are filed electronically through the Bundesanzeiger portal. Large companies are required to undergo an audit, while simplified requirements apply to small and medium-sized enterprises.

Our Experts

Pavel Kos

Head of Legal. Pavel has been with COREDO since June 2017 and possesses extensive experience in corporate law and company formation across European jurisdictions. He coordinates legal support for business registration projects in Germany, including selecting the legal form, preparing documentation, and liaising with German authorities.

Frequently Asked Questions

Do I need to be physically present in Germany to register a company?

In most cases, physical presence is not required. Notarial certification can be completed remotely through a power of attorney. The COREDO team arranges interaction with the notary, bank, and registration authorities without the need for you to travel to Germany.

Which legal form is best suited for a small business?

For small and medium-sized businesses, the optimal choice is UG (haftungsbeschränkt) — a simplified form of GmbH with a minimum capital starting from EUR 1. As the company grows, the UG can be converted into a full GmbH once the share capital of EUR 25,000 has been accumulated.

What taxes does a company pay in Germany?

The combined tax burden ranges from 29% to 33% and includes corporate tax (15.825% with the solidarity surcharge) and the municipal trade tax (14–17% depending on the city). Germany has also concluded double taxation agreements with more than 80 countries.

How long does company registration take?

With all documents in place, registration takes 10 to 20 business days. Including preparatory stages, the process may take up to 30 days. COREDO specialists help optimise the process and minimise delays.

What obligations does a company have after registration?

After registration, the company is required to maintain accounting records in accordance with HGB standards, file tax returns with the Finanzamt in a timely manner, and publish annual financial statements through the Bundesanzeiger. It is also necessary to keep the data in the Transparenzregister — the register of ultimate beneficial owners — up to date. COREDO provides support services to help meet these requirements.

Case Study: Registering an IT Company in Germany

An entrepreneur from Eastern Europe planned to enter the German IT services market. COREDO specialists helped determine the optimal form — UG (haftungsbeschränkt) with minimal initial capital, which reduced the entry threshold. The team prepared the incorporation documents, arranged notarial certification through a power of attorney without the need for a personal visit, opened a bank account, and completed registration in the Handelsregister within 15 business days. After receiving the tax number, the client immediately began providing services to German customers.

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COREDO specialists have been working since 2016, helping foreign entrepreneurs register companies in Germany and other EU countries. We handle all organisational and legal matters — from selecting the legal form to obtaining a tax number.