Why Register a Company in Germany?
Germany offers a robust economy, a strategic location in the heart of Europe, and access to the EU Single Market. For Indian entrepreneurs, it presents opportunities for high-tech innovation, manufacturing excellence, and a stable business environment.
While the process is bureaucratic, the legal framework is transparent and reliable.
Types of Business Entities
Choosing the right legal form is critical. The most common options for foreign investors are:
- GmbH (Gesellschaft mit beschränkter Haftung): The standard limited liability company. Requires €25,000 minimum share capital (at least €12,500 paid upfront). Highly credible and widely respected.
- UG (Unternehmergesellschaft): Often called "Mini-GmbH". Requires only €1 minimum capital. 25% of profits must be saved until capital reaches €25,000 to convert to GmbH. Good for startups.
- Branch Office (Zweigniederlassung): An extension of the Indian parent company. Not a separate legal entity. The parent company bears full liability.
- AG (Aktiengesellschaft): Joint-stock company for large enterprises. Minimum capital €50,000.
Key Requirements
- Share Capital: €25,000 for GmbH (50% paid up), €1 for UG.
- Registered Office: A physical address in Germany is mandatory. A P.O. Box is not sufficient.
- Managing Director: At least one managing director (Geschäftsführer) is required. They do not need to be a German resident, but it helps with bank account opening.
- Notarization: All founding documents must be notarized by a German notary.
- Bank Account: A German business bank account is essential to deposit the share capital.
Documents Required
Prepare these documents carefully to avoid delays:
- Passport Copies: Notarized copies for all shareholders and directors.
- Proof of Address: Utility bills or bank statements (not older than 3 months).
- Articles of Association (Satzung): Drafted in German and notarized.
- Business Plan: Detailed plan, especially if applying for a visa.
- Parent Company Documents: If a subsidiary, notarized and apostilled documents of the Indian parent company.
- Specimen Signatures: Of the managing directors.
Registration Process
- Name Check: Verify the company name availability with the local Chamber of Commerce (IHK).
- Drafting Documents: Prepare the Articles of Association and other legal documents.
- Notarization: Sign the documents in front of a German notary. This can sometimes be done via Power of Attorney.
- Bank Account Opening: Open a business account and deposit the share capital. Obtain the deposit certificate.
- Commercial Register Entry: The notary submits the documents to the Commercial Register (Handelsregister).
- Trade Registration: Register with the local Trade Office (Gewerbeamt).
- Tax Registration: Apply for a Tax ID and VAT number from the Tax Office (Finanzamt).
Costs and Timeline
Estimated Costs:
- Notary & Court Fees: Approx. €800 - €1,500 depending on share capital.
- Registration Fees: Approx. €150 - €300.
- Professional Fees: Vary based on services (legal, tax, address).
Timeline: The entire process typically takes 4 to 8 weeks. Bank account opening is often the most time-consuming step for non-residents.
