The Right Way Of Forming A Company In Germany

Forming a company in Germany or any other country for that matter can be both scary and exciting. The right way to approach this daunting task is to first get acquainted with the German bureaucracy. Here are few things you can keep in mind in order to do it right.

  1. For new businesses, Forming a GmbH in Germany, can be a good idea. As the name explains, the shareholders (Gesellschafter) of the company are not personally liable for any debts on the company, this is the point, it is a limited liability company. However, to establish such firm, you need a minimum capital of 25,000 euros.

  1. Now that you know, which kind of company is good for you, the next thing is to find a command center. Finding a place that is fit for all your business needs can be a time-consuming task. You need to start working on this before anything else. However, if in the beginning you do not feel the need for a big space, you can rent some desks in a coworking space. Not only would it save you a ton of money but will also help in establishing connections which might help you with your future business needs.

  1. Starting a business anywhere in the world can be a bit overwhelming with all the formalities to complete. Having a legal expert to assist you in this process can be a good idea. While hiring a lawyer, do your homework first so that you can judge if the lawyer knows his field well. Do an extensive research before you contact them and do not hesitate to ask questions.
 Forming A GMBHImage result for Forming A Company
  1. If you are not convinced about hiring a lawyer, you can always go for a professional firm to deal with each and every matter there is to forming a company and be relaxed and tension free throughout the process. This would not only give you time for focusing on other important tasks but would also ensure a smooth process without any mistake.

  1. If you are still going with a lawyer, he would draft an agreement and the notarial certification of your company. These documents are extremely crucial as they are the base of your incorporation in Germany.

  1. Once you are registered as a GmbH, you need to start looking for an official managing director for the company have him certified by notary. Your task here is not yet done though. You will have to pay in the capital which leads to a further important task, which is finding the right bank.
 Forming A Company
  1. There are plenty of banks in Berlin that are happy to cater to startups. All you need to do is find the right bank that would suit your requirements. Next is to deposit the required share capital so that you can finalize the registration in the trade register. This step would give you a legal tag of a GmbH.

  1. Once you have deposited the stock capital and got yourself registered, the difficult part is done. Some of the other tasks to do is filing a request for company’s tax number and VAT Registration number. These two are a must to have before you start conducting business in Germany.

  1. Last but not the least, get a company number (Betriebsnummer) from the Employment Agency so that all your employees can be registered with their insurance companies. Going for an Employer of record in the beginning of your business can be a good idea as it ensures the smooth set up of Payroll and HR processes at the same time lets you concentrate on much bigger and crucial tasks that would help you grow your business.

Of course you can use a specialized company that takes care of all of these steps for you. 
Location: Germany

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