How To Register A Company : A Complete Company Formation In Germany Guide

Setting up a company in Germany is an exciting part of an entrepreneur’s life. But there comes an overwhelming amount of questions with this thought. Is setting up a GmbH in Germany is a good idea or should I go for some other form? What is the procedure of company formation Germany? What are the legal regulations involved? 

Don’t worry because we’ve put together a roadmap to help guide you through the entire process of company formation. 
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1. Choose The Right Limited Liability Company For Your Business

The foremost thing or the first decision to make is to identify which form of the company would work best for you. Here having an expert firm by your side can help as they can help you with the right legal entity for your purposes.
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2. Check If You Have Sufficient Share Capital

For a UG, you need a mandatory capital of €1 but it is recommended to have €1,000 or above.

For setting up a GmbH, the bare minimum to have in the account is €12,500 but it is recommended to have at least €25,000 is best. 

Founders’ Hack: The UG is also known as a “mini” GmbH. It requires less share capital. But in order to make sure that the whole formation process is hassle-free, you should opt for a minimum of €1,000 as share capital. But this may not be the right solution in all cases so you need to consult with an expert before you file for a company type. 
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3. Come Up With A Company Name

The next step is to come up with a company name. In order to zero on a unique name, you can check the commercial register (Handelsregister) in order to find out if the name has already been taken or not.
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4. Decide On The Object Of The Company (Unternehmensgegenstand).

According to German law, you need to quite specific with this one. A little tip here is to check the Handelsregister in order to see what similar companies have used for their Unternehmensgegenstand. This would give you an idea about how to decide on the object of the company. 

Pro Tip: The German Chamber of Commerce and Industry (IHK) will run a check on your company name and objective for compliance for free. So you can benefit from this offering.
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5. Find A Notary And Make An Appointment To Form The Company

The next step is to find a notary and meet with them for the company formation. This could be a time-consuming process depending upon the availability of the notary.  
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6. Get Together Your Necessary Documents

The documents you need at this stage would be as follows:

  • Articles of association
  • Shareholder’s list
  • Founding documents - this would be needed to open a bank account
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7. SHOW UP To The Notary Appointment With Your Fellow Shareholders

Now all you need to do is show up at notary’s office with all the shareholders. Don’t forget to bring your ID and all the necessary documents!

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