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Company registration Germany
Germany is one of the most attractive countries in Europe for international business expansion and foreign investment. Many entrepreneurs choose to register a company in Germany due to its strong economy, stable legal system, and access to the European Union market.
The most common business structure for foreign entrepreneurs is the German GmbH (limited liability company). Company registration in Germany involves several important steps, including notarisation of company documents, business bank account opening, tax registration, and compliance with German accounting requirements.
Germany is known for its strict regulatory and banking environment, which makes proper planning especially important for non-resident business owners. CompyCo coordinates company registration in Germany together with banking, accounting, tax, and compliance solutions through a network of licensed professionals and trusted partners.
Forms of companies in Germany
- GmbH “Gesellschaft mit beschränkter Haftung”—limited liability company
- AG “Aktiengesellschaft”—Joint Stock Company/Public Listed Company (PLC)
- UG “Unternehmergesellschaft”— a type of mini-GmbH, limited liability company
- Einzelunternehmen—sole trader
- OHG “Die Offene Handelsgesellschaft”—Commercial partnership
- GbR “Gesellschaft bürgerlichen Rechts”—Private partnership
- Branch of a foreign company
- KG “Kommanditgesellschaft”—Limited partnership
What is the Difference Between GmbH and UG in Germany?
The most commonly used company types for foreign entrepreneurs registering a company in Germany are the GmbH (Gesellschaft mit beschränkter Haftung) and the UG (Unternehmergesellschaft).
The main difference between these two company forms is the share capital requirement. A UG can be established with a minimum share capital of EUR 1, while a GmbH requires EUR 25,000 share capital, of which at least EUR 12,500 must generally be paid before registration.
Although a UG can legally be established with very low share capital, in practice a higher amount is often recommended, particularly for smoother business bank account opening and stronger credibility with clients and suppliers, as the share capital amount is publicly visible in the German Commercial Register.
The incorporation process for a UG and GmbH is largely the same and includes notarisation of company documents, business bank account opening, and registration with the German authorities.
A UG is also required to retain part of its annual profits until the company reaches EUR 25,000 share capital, at which point it may be converted into a GmbH.
Fundamentals Of A Limited Liability Company in Germany
Fundamentals of GmbH and UG
Corporate Tax in Germany | VAT in Germany |
|---|---|
30%, but varies between regions | 19% |
| Limited liability company | GmbH and UG |
| Minimum Share capital | GmbH: 25000 EUR, min to pay 12500 EUR, UG: 1 EUR |
| Registered office required | Yes |
| Physical office required | No |
| Min. number of Shareholders | 1 |
| Min. number of Directors | 1 |
| Local Director required | No |
| Other requirements | |
| Bank signatory must travel | Yes |
| Timescale for company formation | min 30 days |
| Timescale for bank account opening | 7-14 days |
| Timescale for obtaining VAT number | min 14 days |
| Statutory audit requirements | No |
| Shelf companies available | Yes |
The process of setting up a company in Germany
Remote Company Registration in Germany
It is possible to register a company in Germany remotely without travelling to Germany. However, certain company documents must be notarised and apostilled in the shareholder’s country of residence.
The remote incorporation process generally includes:
- Signing the application documents and Power of Attorney (PoA)
- Opening a temporary business bank account
- Depositing the required share capital
- Obtaining the bank confirmation certificate
- Signing the Articles of Association and shareholder resolutions
- Submission of the incorporation documents to the German Commercial Register by the notary
- Registration with the tax office, trade register, UBO register.
- Activation of business account
If registering a company in Germany remotely, notarization and apostille procedures are required twice during the process.
Company registration with a Visit to Germany
Many foreign entrepreneurs choose to visit Germany for one day to complete the incorporation process directly with the notary. This option is often faster and reduces the amount of document legalization required abroad.
During the visit, shareholders and directors sign the incorporation documents before the German notary and complete the identification process.
After the notarization appointment:
- The business bank account is opened
- Share capital is deposited
- The bank confirmation is issued
- The company is submitted to the German Commercial Register
Following company registration in Germany, additional registrations may be required, including tax registration, VAT registration, trade office registration, and beneficial owner (UBO) registration.
CompyCo coordinates the incorporation process together with registered office, accounting, tax, and compliance solutions through a network of local professionals and partners.
Requirements for Company Registration in Germany
The following documents are generally required from directors and shareholders:
- Copy of passport
- Proof of residential address (utility bill or bank statement not older than 3 months)
Where a corporate shareholder is involved, additional documents may be required, including:
- Certificate of Incorporation
- Certificate of Good Standing
- Commercial Register Extract
- Certificate of Representation or similar corporate authorisation documents
Once the required documentation has been collected, the company registration process in Germany can begin.
Options for setting up a limited company in Germany?
CompyCo offers several different options for entrepreneurs looking to register a company in Germany. Depending on your priorities, the incorporation process can be structured around speed, remote setup, banking preferences, or operational readiness.
Foreign entrepreneurs commonly choose between remote company registration in Germany, incorporation with a visit to Germany, or purchasing an existing shelf company.
Available options include:
- Company registration in Germany with a visit to Germany (UG or GmbH)
- Remote company registration in Germany with online banking solutions
- Purchase of a shelf company in Germany
Each option has different requirements, setup times, and banking possibilities depending on the shareholder structure and business activity.
Company Registration Costs and Options in Germany
- Company registration in Germany with a traditional German business bank account. This option generally requires the company director to travel to Germany for approximately one day in order to complete the bank account opening process. Company registration costs for this option start from EUR 4,950 excluding VAT.
This process is typically one of the slower incorporation options and may take approximately 5 to 7 weeks depending on the bank, company structure, and shareholder profile.
- Remote company registration in Germany with online banking solutions. In this structure, the incorporation process can generally be completed remotely without travelling to Germany.
Company registration costs for this option start from EUR 5,650 excluding VAT. This option is commonly chosen by non-resident entrepreneurs looking for a faster and more flexible remote setup solution.
- Purchase of a shelf company in Germany. This is generally the fastest way to start operating through a German company structure.
Depending on the selected banking solution, the director may either travel to Germany for a traditional bank account or complete the process remotely with online banking solutions.
- Shelf company costs vary depending on the structure and setup requirements.
All packages generally include company registration, registered office address, drafting of incorporation documents, notary coordination, tax registration support, and assistance with business bank account opening.
Branch Office Registration in Germany
Many foreign investors and international companies choose Germany as a strategic location for establishing a branch office. Registering a branch office in Germany may take up to 2 months depending on the structure and documentation provided.
Unlike a German GmbH or UG company, a branch office does not require share capital, as the foreign parent company remains fully liable for the branch’s obligations.
To register a branch office in Germany, registration with the Commercial Register and local trade office is generally required.
A branch office must also have:
- a branch manager or authorised representative
- a German registered office address
Depending on the business activity, additional tax or regulatory registrations may also apply.
If you are unsure whether a German branch office or limited company is the better option for your business, CompyCo connect you with advisor to find the most suitable structure based on your business activity and expansion plans.
If you are interested to hear more about the benefits of setting up a company in Germany, head over here.
If you are still deciding which European country is best for your business expansion, read our guide on choosing the right country and company structure for setting up a business in Europe..
Bank Account Opening
Opening a bank account is one of the first steps for company registration in Germany. The country offers some of the world’s leading international banking facilities, and CompyCo coordinates access through its trusted network of partners.
With experience in working alongside both high-street and online banks, we guide you in choosing the most suitable option based on factors such as the residency of shareholders and directors, business activity, expected monthly transactions, and turnover.
As AML regulations continue to evolve, German banks are implementing new rules and stricter requirements. CompyCo closely follows these changes to keep clients informed and to help avoid unnecessary delays.
The cost and timeline of company registration in Germany will also depend on your banking choice. For example, selecting a high-street bank may extend the process compared to choosing an online bank.
For more information about International banking solutions that CompyCo can coordinate with, head over here.
To learn about reasons why Bank’s reject clients head over here.
Accounting and Tax Obligations After Company Registration in Germany
Some of the main accounting and tax obligations companies should consider when registering a company in Germany include:
- Germany applies a standard VAT rate of 19%, while certain goods and services may qualify for a reduced VAT rate of 7%.
- Once a company is VAT-registered, VAT returns may need to be submitted monthly or quarterly depending on turnover, tax liability, and business activity. (Source: Stripe)
- Annual corporate tax returns in Germany are generally due by 31 July of the following year. If filed through a tax advisor, the deadline is usually extended. (Source: PWC)
- Accounting, bookkeeping, and financial reporting obligations depend on the size of the company. Small companies benefit from simplified reporting requirements, while medium-sized and large companies may be required to prepare additional financial statements and management reports.
- Financial statements of medium-sized and large companies are generally subject to statutory audit requirements.
- Non-resident companies are generally taxed only on income sourced from Germany or generated through a German permanent establishment.
- Individuals working in Germany are subject to progressive personal income tax rates based on annual income.
- Companies operating in Germany are generally subject to:
- Corporate Income Tax (approximately 15%)
- Solidarity Surcharge
- Trade Tax (Gewerbesteuer), which varies by municipality.
- Proper bookkeeping and retention of accounting records are mandatory under German commercial and tax law.
- CompyCo coordinates accounting, tax registration, VAT registration, and compliance solutions in Germany through a network of local professionals and licensed accountants.
How to employ in Germany?
Germany is home to a large pool of highly qualified, technically trained professionals. If your company is based abroad but you want to employ someone in Germany, CompyCo can guide you through the available options.
Depending on your business needs, CompyCo coordinates either:
– the registration of a company in Germany, or
– the process of setting up your foreign company as a non-resident employer, which allows you to legally hire staff without establishing a local entity.
Hiring through a non-resident employer structure is a common practice for companies that want to engage talent for remote roles — such as web designers, digital marketing experts, or researchers — while avoiding the significant costs associated with maintaining a local subsidiary.
In some business sectors, however, hiring employees in Germany to work exclusively from home may not be possible. In such cases, CompyCo helps coordinate the establishment of a German company or arranges Employer of Record (EOR) services through trusted local providers.
Whatever the case, CompyCo ensures that you are fully compliant with German requirements. We coordinate HR services, payroll support, and monthly maintenance while keeping you informed of any regulatory changes.
Want to find out more? Take a look at our HR services page to find out how we can help you!
Why Choose Germany for Business?
Germany is considered one of the strongest and most stable business environments in Europe. Located in the heart of Europe and home to the largest consumer market in the European Union, Germany offers excellent opportunities for international entrepreneurs and companies looking to expand into the EU market.
Some of the main advantages of doing business in Germany include:
Access to the largest consumer market in the European Union
Central location in Europe with strong international logistics connections
Stable political, legal, and economic environment
Strong reputation for manufacturing, engineering, and innovation
Highly skilled and educated workforce
Well-developed banking and business infrastructure
Access to the wider EU single market
Strong protection of intellectual property and contractual rights
Germany is particularly attractive for manufacturing companies, e-commerce businesses, consulting firms, technology companies, logistics businesses, and international trading companies looking to establish a presence within the European Union.
If you are still deciding which European country is best for your business expansion, read our guide on choosing the right country and company structure for setting up a business in Europe.
Frequently Asked Questions About Company Registration in Germany
Yes. Non-residents can register a company in Germany, although additional compliance and identification requirements may apply depending on the company structure and banking solution selected.
A German GmbH requires EUR 25,000 share capital, of which at least EUR 12,500 generally needs to be paid before registration. A UG company can be established with share capital starting from EUR 1.
Yes. It is possible to register a company in Germany remotely. However, notarization, apostille procedures, and identification requirements will generally apply and it will be a longer process.
The incorporation process in Germany usually takes between 2 and 7 weeks depending on the selected company structure, banking solution, and the speed of document preparation and verification.
Not always. Traditional German banks require a personal visit, while online banking solutions (EMI’s) allow remote onboarding.
German companies are generally subject to Corporate Income Tax, Solidarity Surcharge, and Trade Tax (Gewerbesteuer). VAT registration may also be required depending on the business activity.
Yes. There are generally no nationality restrictions for directors or shareholders of a German company, although banks and authorities may request additional verification documents for non-residents.
The main difference is the share capital requirement. A UG can be established with very low share capital, while a GmbH requires EUR 25,000 share capital. A UG may later be converted into a GmbH once sufficient capital is accumulated.
Yes. Every German company must have a registered office address in Germany for official correspondence and registration purposes.
CompyCo coordinates the company incorporation process together with a network of local professionals, including notaries, accountants, registered office providers, and banking partners.
Looking to expand elsewhere in Europe? Explore company registration solutions in Denmark, Sweden, France, Hungary. or Netherlands.
You may also find these guides helpful
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- Expanding to Europe: Choosing the Right Company Structure and Country
- Why Banks Reject Clients – and Why No One Can Guarantee Account Opening
- Changes in Taxation and Company Law across EU from January
- The New Era of Company Registration in the EU is coming!
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