The Legal Form
Formation procedures are swift and efficient, with only a few steps needed to establish a company in Germany. Foreign investors can choose between several types of corporations and partnerships for conducting business in Germany. Existing foreign companies can also conduct business via a German branch office.
Overview of Legal Forms: Corporations
| Legal/Establishment Form | Legal Liability | Minimum Capital | Number of Persons Required | Establishing Formalities |
|---|---|---|---|---|
| Private Limited Liability Company (GmbH) | Limited to share capital | EUR 25,000 | Minimum one person | Moderate |
| Limited Liability Entrepreneurial Company (Unternehmergesellschaft Haftungsbeschränkt/Mini GmbH) | Limited to share capital | EUR 1.00 | Minimum one person | Low-Moderate |
| Stock Corporation (AG) | Limited to share capital | EUR 50,000 | Minimum one person | Moderate-High |
Overview of Legal Forms: Partnerships
| Legal/Establishment Form | Legal Liability | Minimum Capital | Number of Persons Required | Establishing Formalities |
|---|---|---|---|---|
| Civil Law Partnership (GbR) | Personal unlimited liability | None required | Minimum two partners | Very low |
| General Commercial Partnership (oHG) | Personal unlimited liability | None required | Minimum two partners | Low-Moderate |
| Limited Partnership (KG) | Limited partner: liability limited to shares. General partner: personal unlimited liability | None required | Minimum two partners | Low-Moderate |
| Coporate Partnership (GmbH & Co. KG) | Limited partner(s): liability limited to shares. General partner: GmbH, limited to own limited share capital | None required | Minimum one partner (shareholder of the general partner (GmbH) is identical to the limited partners of the KG) | Moderate-High |
Overview of Legal Forms: Branch Offices
| Legal/Establishment Form | Legal Liability | Minimum Capital | Number of Persons Required | Establishing Formalities |
|---|---|---|---|---|
| Dependet Branch Office (Unselbstständige Niederlassung) | Subject to the head office legal company form | None required | Minimum one person | Very low |
| Autonomus Branch Office (Selbstständige Zweigniederlassung) | Subject to the head office legal company form | None required | Minimum one person | Moderate |
