Your Legal Advisors for Company Registration in Germany – 3E Accounting
Are you thinking of company registration in Germany? There are several ways through which you can have a business entity in Germany. Our corporate incorporation services will help you register your preferred business. Our services will guide you in a smooth and hassle-free manner. We have a team of competent lawyers, accountants and tax experts who are available to you. They can give all the expert advice you need when it comes to registering a company in Germany. All you have to do is get in touch with us, and we will be willing to help.
Legal Entities to Consider in Germany
If you want to register a company in Germany, then you need to know the kinds of business bodies. While choosing your entity, some of the factors you should consider include:
- The parent industry of the business
- Tax implications
- Available capital and the minimum capital requirements to start that business
- The extent of liability you are willing to shoulder
- If a partnership, then how many partners
- The future development of the business
With the above considerations, you will be in an excellent position to choose a legal entity. It will help you achieve your business goals in Germany. For example, if you intend to bring many parties on board to register the company, you should clearly state the role of each and every partner or member in writing. This is especially necessary if you intend the company to operate as a corporation such as GmbH – German Limited Liability Company.
It will excite you to know that the German Law allows for contractual freedom. It is to decide your company’s structure, your situation, and that of your partners when considering company registration in Germany. The ultimate business vehicle you want is the exact thing you envisioned to have for the business in German.
About Partnerships and Incorporated Companies in Germany
According to the German incorporation laws, there is a difference, in principle, between incorporated companies and partnerships. In partnership, the management of the business is left in the hands of the individual partners, while companies require financial participation in the day to day running of the business.
The first process for company registration in Germany begins with registration with the commercial register before the business can name as a legal entity. The most common and important forms of business incorporation in Germany include the following:
- Joint Stock Company
- Limited Liability Company
- Partnership Limited by Shares
Different Liability Depending on the Entity
Just like with incorporation in other countries, the liability that comes with company registration in Germany depends on the exact type of body incorporated. For example, the liability in incorporated companies is very different from the liabilities in partnerships. In incorporated companies, the liability is limited to corporate assets. While in partnerships, the liability extends to at least one natural person with all his private assets.
The capital requirements for company registration in Germany also varies depending on the type of business entity registered. For the formation of a joint-stock company, the minimum capital requirement is EUR 50,000, while that for a limited liability company is EUR 25,000. In limited partnerships, however, the law set the minimum capital amount, only that the partners will have to make contributions.
The Tax Burden for Doing Business in Germany
It is important to understand the tax regime when it comes to doing business in Germany. According to the German tax laws, there is a difference between the business entity earns income and the partners earn income. For example, partnerships are not subjected to taxes, and the taxes will only be considered at the level of the individual partners.
For incorporate companies, tax deductions go through the corporate tax at the company level and also through income tax at the shareholder level. This may sound like double taxation, but it is moderated in certain amounts in the form of dividends which are usually tax-exempt.
Your Advisors for Company Formation in Germany – 3E Accounting
If you are planning to register a company in Germany, then our legal advisors are ready to accord you all the help you need for successful formation. 3E Accounting not only advises but also can help you with the entire registration process, including tax optimization to ensure that you get the taxes right and you will not be paying more than you should. Our services are fast, reliable, quick and will guarantee to make the process of company registration in Germany a breeze for you. Contact us for more information.