Stepwise Guide For Setting Up A GmbH In Germany

Setting up a company in Germany can be a bit overwhelming at times. One option is setting up a GmbH in Germany. A GmbH can be as small or as big as you want. You can be a massive conglomerate or be a one-man show. A GmbH is one of the most popular business classifications. So what it is and why you might want to set one up.

The main reason behind forming a GmbH in Germany is to limit your liability as in case of a GmbH, should something go wrong, the company becomes the sole responsible party as opposed to you personally. 
Stepwise Guide For Setting Up A GmbH In Germany 1
Here are the steps you’ll need to take while you set up your GmbH in Germany:

First, Find A Notary

In Germany, some contracts need notary. So, to start the process of setting up the company, you’ll need to first get in touch with a notary and that notary will set up the contract for your corporation.

Put Money Into Your Business Bank Account

The next step is to put money in the bank. Generally, to be a GmbH, you need a minimum of €25,000 in the bank. However, it is ok to put only half of it when you first start out. The money does not need to be there in the bank at all times and can be used for your business. 

Show Your Notary Proof Of Deposit

You need to present the bank statement as a proof that you have put the money in the bank to the notary. Only then will he be able to register your business with the trade register. Another note here is that you can’t register yourself. He has to do it for you.

The entire process takes 4 to 6 weeks of time to complete. In the meantime, you can still work in your business and as soon as the notary writes the letter to the trade register, your company is cleared to go.
Stepwise Guide For Setting Up A GmbH In Germany

 How Taxes Work With A GmbH

Another important thing to know is taxes. Your VAT will stay the same regardless of whether you’re a GmbH or a sole proprietor. However, taxes for a GmbH are far more complicated and with more formalities. In other words, hiring a professional or outsourcing the work completely to take care of all the formalities is a full-proof way to go while setting up a company in Germany. 

Going for a professional firm that is backed by years of experience with up to date technology can help you follow the process better with minimum effort at your end. The time that will take you to figure everything out can actually be utilized in setting up the company thus kick-starting your business in less time it would have taken had you been doing everything yourselves.
Location: Germany

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