Company Formation Germany – Reasons And Benefits

When it comes to establishing a company in Europe, there are few countries that offer an immense array of benefits. One such country is Germany. Company formation in Germany is pretty easy if you have retained the services of a professional company formation or incorporation firm. In fact, quite a few of these service providers will also minimize the necessity for you to travel to Germany just to establish a company. Before going in for company formation in Germany here are a few aspects that you can keep in mind.

Types of company

There are different types of companies as far as Germany is concerned and the price of establishing each one of them will differ. Some of the types of companies that you can establish in Germany are:

  • UG
  • GmbH
  • OHG and
  • AG

Probably the GmbH is one of the most common forms of company in Germany.GesellschaftmitbeschränkterHaftung – or GmbH is characterized by a few advantages such as the requirement of only one director and no insistence on appointing a local or resident as director. There is even a newly formed type of company called mini GmbH which calls for just one euro as share capital.

Going in for shelf companies

There are quite a few professional incorporation services firms that have extremely detailed websites and also offer something known as ready-made or shelf companies in Germany. Normally, such professional incorporation firms will update the list of available shelf companies regularly. A shelf company is nothing but an entity that already has a VAT number. So all you have to do is pick up such a shelf company and start your business.

Fees and regulations

It is also important to keep an eye out on the various fees and regulations that are applicable as far as company formation in Germany is concerned. For instance, trademark registration is at a cost of 349 EUR. There may be other registrations such as company registration and commercial registration which can be done at different schedules and different costs as well.


If you chose to go with a new company rather than picking up a ready-made or shelf company, you will need to set aside at least four weeks for the process to be complete. Apart from the initial work such as thinking about the business structure and retaining the incorporation firm, you need to look at signing various company documents which will need to be done in front of an authorized notary.