GMBH / AG FORMATION

OUR NEW GERMAN COMPANY FORMATION SERVICE WEBSITE

 

You want to operate your business professionally in Germany with a corporation? You like to spend just 750 Euros for getting the job done? Please do not hesitate to contact us for more information!

 

The service component incorporating a GmbH, in a nutshell: forming a German GmbH (limited liability company) or German AG (public limited company). Drawing up a memorandum of association in English/German language to your very own requirements, checking that the company name you would like is admissible, having a German notary record the memorandum of association, assisting with the opening of a German bank account, registering the company with the trade licensing office and the tax office as specified by law, drawing up the company´s opening balance sheet as prescribed by law for it to be submitted to the tax office. The fee of this service component is 1,500 euros to set up a GmbH and you have not even to come to Germany. But, if you deceide to attend the mandatory meeting with the notary public in Germany the fee will be reduced to 750 Euros. Do not worry about the statutory seat of your GmbH you are allowed to open branch offices accross Germany.

Please compare our offer with fee offers of our competitors by adding all costs together: acquistion of shelf-GmbH or formation of new German GmbH, fee of tax accountant for required opening balance sheet, additional costs for changing the name of your new German company if you are buying a German shelf company, addional fees for relocating your new German company to the place you like, for re-registration with all German authorities including required check with the local chamber of commerce. Some value for money offer becomes a never endig story of throwing money into the pockets of various service providers. Isensee's company formation service is the alternative. For 1,500 Euros (or 750 Euros) you can start your business in Germany within 10 - 15 working days; the company will be fully registered with the German authorities, and you will incur no further hidden costs! Please ask for company formation references!   

 

The formation and registration of a German company will be carried out quickly and professionally on a "one shop, one stop" basis. As German tax consultants and lawyers we are highly respected by the German authorities, and in complex cases can also reach a solution quickly with the authorities that is advantageous to you.

General information on forming a GmbH

For many years now the GmbH has been by far the most popular legal form in Germany, in which a sole trader or two or more partners together run their own business. When a GmbH is incorporated, a legal entity is created with its own rights and duties and its own name. The GmbH´s rights and duties are therefore separated from those of the shareholders. The GmbH can be used in a versatile manner, because the design of its organisation and administration is extremely flexible.

Liability
The liability risk is basically limited to the GmbH´s assets. In principle, personal liability is excluded for the shareholders. Should the GmbH become insolvent, the shareholders are not liable with their private assets above and beyond their contribution to the company capital. If they have not paid in their contribution, in the case of insolvency their liability is limited to the outstanding amount of their contribution to be paid in. In exceptional cases a breach of duties can entail personal liability for the director or the shareholders.

 

Moreover, the restriction of personal liability does not apply to the shareholders until the GmbH has been registered in the Company Register. For it is only when registered that the GmbH becomes an independent legal entity. If liabilities were assumed on behalf of the GmbH before the registration (e.g. the future business premises are already registered in the name of the GmbH "being set up"), those acting and the shareholders can be personally liable.

Incorporation
A GmbH can be set up by several persons, as well as by just one person ("a one-man GmbH"). The memorandum of association incorporating the GmbH must always be recorded by a notary. The recording by a notary incurs notarial costs, the amount of which depends on the amount of the share capital chosen. Besides individuals, shareholders can also be legal entities.

Share capital
The GmbH´s share capital must be at least 25,000 euros. The memorandum of association must state the share capital. The same applies to the number of capital shares taken on and their nominal value. The nominal value of the capital shares must be stated in full euros. A contribution has to be made for each capital share. With cash contributions, the registration can only be made when a quarter of the nominal value has been paid up for each share. Altogether, though, at least 12,500 euros have to be paid up.

The company´s business
The company´s business has to be described in the memorandum of association in a way that is so clear that persons operating in the commercial market can have a concrete idea of the company´s business. When the company is registered, a company address in Germany must be indicated to ensure that the company can be reached.

The company name
Personal names, names of objects and fancy names are admissible. The personal name must contain the family name of at least one shareholder (Smith GmbH) or the name of a trading company that is a shareholder (without the legal form appendage). The object name must clearly indicate the company´s business and also have an individualising appendage that sets it apart from the quantity of companies with a similar company business. The name of the object must therefore not only be, say, "Steel Trading-GmbH", but also for instance "Crown Steel Trading-GmbH". A combination of names and object indication is likewise admissible (Smith Steel Trading GmbH). The company name can also comprise fancy names (abbreviations, neologisms, etc.).