Starting a German company
Are you starting a German company? Then it is likely that you will register as a Gesellschaft mit beschränkter Haftung (GmbH). It is comparable to what we call a B.V. in the Netherlands. This form of business is very common in Germany. There must be a starting capital of at least 25,000 euros available. This amount must be deposited into your own German business account. Only after the amount has been deposited into the account can the notary officially establish the company. It is mandatory to have an office in Germany. In addition, you need a local representative, such as a sales manager for Germany, to represent the company.
Registering in the Commercial Register
If you want to start a business in Germany, it begins with the intention. For this, a letter of intent is needed, which you prepare together with the notary in Germany. There are various conditions that must be included in the declaration. Once the notary agrees and the German account is opened, it is time to deposit the starting capital. After that, you go back to the notary with an extract from the business account. Then the company is registered in the Commercial Register. This is legally required under German law. It is mandatory to complete the registration before the company actually starts trading.
This registration requires the involvement of a notary. It is possible to find sworn notaries at the Bundesnotarkammer.
Registering with the Gewerbeamt
Of course, the local tax office would like to know that you have started a business. Therefore, the company must be registered with the local Gewerbeamt (trade office). This office is located in the region where the company is established. For some freelance professions, registration is not necessary. For example, when one works as an architect, lawyer, or doctor. Registration is not free, but costs a few tens of euros. The information is forwarded to the local Finanzamt, which determines the tax obligations for your business. For example, income tax and sales tax.
Also listen: Podcast: The Adventure of Entrepreneurship
Also read: Top 5 cities to start a business
