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.
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.
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.
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