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Germany at a glance
Germany is an EU member state with its own national company forms and registration rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet.
Formation costs and filing requirements checked . Other figures retain their earlier review dates.
Company types in Germany
- GmbH (limited liability company) A German private company with at least EUR 25,000 subscribed capital. Cash formation requires at least a quarter of each share and EUR 12,500 in total before registration. The remaining contribution is still due.
- UG (haftungsbeschränkt) A GmbH variant with capital below EUR 25,000, starting from EUR 1. All subscribed capital must be paid in cash. It allocates 25% of annual surplus, adjusted for prior losses, to a statutory reserve. Raising capital to the GmbH minimum requires a formal capital increase.
Company formation in Germany: key facts
- Corporate tax
- Around 30% combined. Federal corporate income tax is 15% plus a 5.5% solidarity surcharge on that tax (15.825% together), plus a municipal trade tax (Gewerbesteuer) of roughly 7% to 17% depending on the municipality.
- VAT rate
- Standard VAT is 19%, with a reduced 7% rate.
- Dividends & payroll taxes
- Dividends to individuals bear the 25% flat withholding plus the solidarity surcharge. Personal income tax reaches 45%, employer social contributions add roughly 20% up to the ceilings, and municipal trade tax is what lifts the combined corporate rate to about 30%.
- Minimum share capital
- A GmbH needs at least EUR 25,000 subscribed capital. For cash shares, pay at least 25% of each share and EUR 12,500 in total before filing. The unpaid amount remains due. A UG can start from EUR 1, but its subscribed capital must be fully paid in cash. Capital funds the company; it is not a registration fee.
- Setup time
- There is no universal end-to-end deadline. The Bundesnotarkammer describes a notarial appointment of usually one to two hours and a register step of usually one to three days, depending on the court. Preparation, bank checks, capital payment and foreign-document authentication sit outside those times. Agree a schedule for your specific case.
- Remote setup
- Online GmbH or UG formation is available when the required participants meet the accepted eID, photograph and technical requirements of the Bundesnotarkammer. An ordinary passport alone does not satisfy the eID step. A shareholder may use an accepted power of attorney; managing directors have separate register declarations. Check the notary and account requirements before assuming that no travel is needed.
- Director / residency
- There is no general nationality or residence requirement for shareholders or managing directors; foreign ownership is allowed. The company needs a German business address and the local representative arrangements described by GTAI. Company ownership does not grant permission to live or work in Germany. If you will work there, check immigration requirements separately.
- Banking options
- Arrange an account that accepts a German GmbH or UG in formation and supports your owners, residence and business activity. Confirm the capital-payment evidence with the notary. Provider checks and account approval are separate from company registration; approval is not guaranteed.
- Our formation service
- from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit.
A German notary is involved in GmbH and UG formation. Accepted online procedures provide another signing route; they do not remove capital, commercial register, trade registration or tax registration requirements.
How to register a company in Germany
Choose the company form, then confirm the signing route and account requirements. A German notary prepares the formation documents and submits the commercial register application. Foreign documents and bank checks can take longer than the filing itself.
GmbH or UG: choose capital for the business
| Requirement | GmbH | UG (haftungsbeschränkt) |
|---|---|---|
| Subscribed capital | At least EUR 25,000 | From EUR 1, below EUR 25,000 |
| Payment before filing | For cash shares: at least 25% of each share and EUR 12,500 in total | All subscribed capital, in cash |
| Profit reserve | No UG-specific reserve rule | 25% of annual surplus after adjusting for prior losses goes into a statutory reserve |
The unpaid GmbH contribution remains due. A UG does not automatically become a GmbH when its reserves grow. The capital must be formally increased to reach the GmbH minimum. See Section 5, Section 5a and Section 7 of the GmbHG.
The statutory model protocol can suit a simple cash formation with up to three shareholders and one managing director. It offers limited flexibility. Ask whether tailored articles better cover ownership changes and decision-making. Section 2 defines this route.
Non-EU ownership and the German address
Shareholders and managing directors do not have a general German nationality or residence requirement. GTAI specifies a German business address and a local representative. Agree how official mail and local registrations will be handled. Buying an address service does not establish tax residence or satisfy every activity requirement.
Owning the company does not grant an immigration right. If you will live or work in Germany, check the appropriate permission before starting. GTAI separates company formation from residence and work permission.
Prepare the documents before the appointment
- People and ownership: identity documents, shareholder details, managing director details and beneficial ownership information.
- Company decisions: proposed name, German registered office and business address, activity, capital and each shareholder's contribution.
- A corporate shareholder: register evidence, articles and proof that its representative can act. Authentication and German translations depend on the country and documents.
- A representative: a power of attorney in the form accepted by the German notary.
Send the document list to the notary first. GTAI recommends early review of foreign-company evidence. This avoids paying for translations or authentication that do not fit the required route.
Online notary or a power of attorney?
Each person joining online needs an accepted eID and the required chip-based photograph document. Supported routes include German eID-enabled identity cards, German-issued eID cards for EU/EEA citizens, electronic residence permits and accepted notified EU/EEA identification schemes with a high assurance level. You also need the PIN, an NFC smartphone with the Notar-App and a suitable computer or tablet. Check the current Bundesnotarkammer requirements. A passport alone does not replace the eID step.
A shareholder can use an authorised representative. The German notary must accept the power of attorney. Foreign certification may need an apostille or legalisation, and the original or an official copy must reach the notary. IHK guidance explains these conditions. All managing directors must make the initial register application in notarially certified form. Certification can also take place online when the identity requirements are met. An online appointment does not guarantee that every other step can be completed remotely.
From signing to registration
- Approve the documents. Confirm the name, address, activities, articles and managing director appointment with the notary.
- Sign the notarial deed. Use the accepted online, in-person or representation route.
- Arrange the company account and capital. Confirm that the provider accepts the company, owners and formation-stage application. Deposit the required capital and supply the evidence the notary requests. Approval is not guaranteed.
- Enter the Handelsregister. The notary files the application. The court checks the documents. Registration establishes the company as a legal entity with limited liability.
- Complete the remaining registrations. Notify the local Gewerbeamt before trading, subject to activity permissions. Submit the corporate tax questionnaire through ELSTER within one month of opening the business. Handle beneficial ownership reporting separately.
The Bundesnotarkammer describes a notarial appointment of usually one to two hours and a register step of usually one to three days, depending on the court. These exclude preparation, bank review, capital payment and foreign-document work. Agree a case-specific schedule before booking travel or promising a trading date.
What German company formation costs
Separate public fees, professional work and company funding. A low-capital UG still needs money to operate.
- Court registration
- For an ordinary cash GmbH or UG entry: EUR 225 under item 2100, plus EUR 75 under item 6000. This EUR 300 subtotal comes from the official register fee schedule. It excludes other registrations and services.
- Notarial work
- Fees depend on the transaction value, articles and required documents. Ask the notary for a complete calculation, including VAT and expenses. The official fee calculator gives an initial indication, not a full formation quote. Online charges add EUR 25 per notarisation and EUR 8 per certification, plus VAT.
- Other setup and running costs
- Request separate prices for municipal trade registration, translations, authentication, representation, address services, banking and professional support. Ask whether the accounting quote includes annual accounts and disclosure. Chamber and register obligations can add recurring charges.
- Capital and operating cash
- Capital belongs to the company. It is not a fee paid to the state or our service. Budget enough cash for formation invoices and ongoing liabilities.
Use the European formation cost guide to compare complete budgets. Check account eligibility before choosing the filing route.
Plan your German company formation
Tell us where you live and what you are building. Our formation service fee is from around €100 to €200 (estimated). We help you compare structures and prepare a quote with the scope, costs and expected timing. Government charges, capital and ongoing services are separate unless included in that quote.
Get your free planWho can form a company in Germany
Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Germany. The director and residency information above identifies the main formation conditions to review.
Germany can fit a business with German customers, staff or operations. Compare the German address, capital, account eligibility and annual compliance requirements against the actual business plan. For a company managed from another country, assess obligations there as well.
After registration: what Germany expects each year
Prepare annual accounts under the HGB. The general preparation deadline is three months after year-end; qualifying small companies can use up to six months where appropriate. The ordinary disclosure deadline is one year after year-end, with filing to the Unternehmensregister and size-dependent relief. Keep beneficial ownership records current. Set the applicable tax, VAT and payroll filing calendar with an accountant; these deadlines differ from annual accounts deadlines.
Plan beyond the registration fee
Use these guides alongside the national rules for your company. The cost and filing examples cover Estonia, Ireland and Portugal.
Germany and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. A national company in Germany is available under existing rules, but a later EU Inc conversion would depend on the adopted law and eligibility. Read how to prepare an EU Inc company, or compare current options in company formation in Europe.
Sources and review scope
Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position.
Formation costs and compliance checked on .
Reference links
- GTAI: company set-up, foreign founders and German business address
- GmbHG Section 2: notarisation, model protocol and representation
- GmbHG Section 5: GmbH share capital
- GmbHG Section 5a: UG payment and reserve rules
- GmbHG Section 7: capital payment before registration
- Bundesnotarkammer: online procedure identity requirements
- IHK Koblenz: online formation and powers of attorney
- GTAI: visas and residence permits for business
- Bundesnotarkammer: formation steps and timing
- Official commercial register fee schedule: items 2100 and 6000
- Bundesnotarkammer: notarial fee calculator
- Bundesnotarkammer: additional online procedure charges
- ELSTER: tax registration for a capital company
- HGB Section 264: annual accounts preparation
- HGB Section 325: annual accounts disclosure
- GwG Section 20: beneficial ownership reporting
- taxsummaries.pwc.com/germany/corporate/taxes-on-corporate-income
Frequently asked questions
What corporate tax does a company in Germany pay?
The headline summary is ~30% combined, with standard VAT of 19%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case.
Can I form a company in Germany remotely?
Online GmbH or UG formation is available when the required participants meet the accepted eID, photograph and technical requirements of the Bundesnotarkammer. An ordinary passport alone does not satisfy the eID step. A shareholder may use an accepted power of attorney; managing directors have separate register declarations. Check the notary and account requirements before assuming that no travel is needed.
What does it cost to form a company in Germany?
For an ordinary cash GmbH or UG entry, the official schedule lists EUR 225 plus a one-third data-availability fee of EUR 75, a EUR 300 court subtotal. Our formation service fee is from around €100 to €200 (estimated). Government charges, capital and ongoing services must be budgeted separately unless the written quote includes them.
Should I choose a GmbH or a UG in Germany?
A GmbH has EUR 25,000 minimum share capital. For a cash formation, at least a quarter of each share and EUR 12,500 in total must be paid before registration. A UG can start with EUR 1, but all subscribed capital must be paid in cash. It must allocate 25% of annual surplus, adjusted for prior losses, to a statutory reserve. Choose capital that can fund the actual business.
Can a non-EU founder register a German company without moving to Germany?
Foreign shareholders can own a GmbH or UG. There is no general nationality or residence requirement for shareholders or managing directors. The company still needs a German business address and the local arrangements described by GTAI. Ownership does not grant permission to live or work in Germany. Check immigration requirements separately if you will work there.
Is a passport enough for online GmbH formation?
A passport alone is not sufficient for the electronic identity step. Each person participating online needs a supported eID, the required chip-based photograph document and suitable hardware. Check the Bundesnotarkammer requirements with the notary before booking. Shareholder representation by an accepted power of attorney can be another route, but managing directors have separate register declarations.
How long does German company formation take?
There is no universal end-to-end deadline. The Bundesnotarkammer describes a notarial appointment of usually one to two hours and a register step of usually one to three days, depending on the court. Those times exclude preparation, bank checks, capital payment and foreign-document authentication. Ask for a timeline based on your signatories, documents and account application.
What official fees should I budget for a cash GmbH or UG formation?
The current register schedule lists EUR 225 for an ordinary initial GmbH or UG entry, plus a one-third data-availability fee of EUR 75. That EUR 300 court subtotal excludes notary fees, capital, municipal trade registration and other services. The notary calculation depends on the documents and formation structure. Online procedures also carry EUR 25 per notarisation and EUR 8 per certification, plus VAT.