Germany GmbH (Limited Liability Company) Setup
Establish a corporate presence in Europe's largest economy. Leverage the prestigious GmbH structure, access local industrial networks, and secure limited liability protection under German law.
The German GmbH Structure
The GmbH (Gesellschaft mit beschränkter Haftung) is Germany's most popular and respected corporate structure. It represents stability, credibility, and security for customers, suppliers, and partners. For smaller startups, German law also allows for the UG (Unternehmergesellschaft haftungsbeschränkt), which is a micro-GmbH with a minimum share capital of only €1.
Incorporating a GmbH requires a formal notary deed, the deposit of share capital into a German bank account, and entry into the Commercial Register (Handelsregister). GmbH structures are subject to German corporate tax and municipal trade tax, with a total combined tax burden of approximately 30%.
Capital & Registration
The minimum share capital for a GmbH is €25,000. At least €12,500 must be deposited into the company's bank account prior to registration. The capital can be contributed in cash or in kind (assets).
The incorporation process is executed before a German notary. The notary drafts the Articles of Association and submits the registration packet to the local court (Amtsgericht) for Handelsregister publication.
German Corporate Taxation
German corporations are subject to a dual-tier tax system:
- Corporate Income Tax (Körperschaftsteuer): A flat federal rate of 15%, plus a 5.5% solidarity surcharge (total 15.825%).
- Trade Tax (Gewerbesteuer): A local municipal tax varying from 7% to 17% depending on municipal multipliers.
- VAT: Standard rate is 19%, registered with the local Finanzamt.