Corporations

When choosing the legal form of the company, a corporation is usually the best option for larger, established companies.

A corporation is a legal person, meaning that the holder of rights and obligations is not the individual shareholder, but the company itself. The company itself concludes contracts, possesses assets and must pay taxes.

Liability is limited to the corporation's business assets, including share capital. A minimum share capital is required, and the accounting obligations are more extensive than those for other business legal forms (such as partnerships).

There are three major forms of corporations under German law: