Regardless of the fact that you are a resident or non resident in Germany, you can open and register a company in Germany and work with your company. By having a company registered in Germany you will be entitled to use advantages that are offered to a German company. All support to the brand and trademark, if registered, will also be applicable. You can open bank account in Germany and depending on the amount of company’s capital and subject of activity, use financial facility.
What are advantages?
Presence in Germany
The founders and directors of the Company are provided with visa facilities for travelling to Germany. If you as the Managing Director or Board Member of the Company wish to move to Germany, can apply for residency of Germany in order to physically present yourself for managing the Company and running the day to day business of the Company in Germany.
Different Types of Company
There are different types of companies under the Commercial Code of Germany that can be registered. Difference in types of companies normally lead into different liabilities for the founders, shareholders and directors and require different capital and share contribution by the shareholders and founders.
Assistance of Tax Advisor
For due operation of your Company in Germany you need to get assistance and support of a German tax advisor that will be in charge of registration of your company with the relevant tax authorities, filing quarterly and annual records of the company, reporting on income/sale operation of Company and preparation of balance sheets are among the services that your tax advisor provide.
Branch and Representative Office
Registration of branch or representative office of your German company in other countries and specially in other EU member states is possible. While it is also possible for you to establish a subsidiary or sister company of your home land’s Company in Germany.
What are different types of Companies in Germany?
One of the popular types of companies is the GmbH or limited liability company (Gesellschaft mit beschränkter Haftung). In GmbH company liabilities of the shareholders is limited to the amount of capital of company. The minimum capital for registration of a GmbH company is the amount of Euro 25,000. The Company can be registered by payment of 50% of the amount of capital in the bank account for company. Although liability of shareholders starts with the full amount of capital but the remained 50% can be paid to the account of company after registration.
The GmbH company can be established with one founder. The founder can be the sole shareholder of company and also the Managing Director. The process on registration of company shall start by signing documents at the notary office and accordingly getting approval of district court on registration of company. The legal existence of company starts when the company is registered in the Commercial Register. The abbreviation defining type of company should always be mentioned with the name of company.
Aktiengesellschaft (AG) (Joint stock company, corporation) – The minimum required number of shareholders for this type of company is 5 and the minimum required capital is Euro 50,000. The shares under this type of company can be listed in the stock exchange. An AG company should have a Managing Board (Vorstand) that remains responsive with regard to issues under its liability including operation of company, and should provide reports to the Supervisory Board (Aufsichtsrat).
Offene Handelsgesellschaft (OHG) (General partnership) – Partners in OHG have unlimited liability. Partnership agreement plays an important role with regard to verifying liabilities of the partners in the operation and daily business of company.
Kommanditgesellschaft (KG) (Limited partnership) – This is also a partnership but liabilities of the partners can be limited or unlimited. Those that have limited liability remain liable only to the amount of their share value, the unlimited liability partners shall remain liable even with their personal assets.
GmbH & Co. KG
GmbH & Co. KG (Limited partnership with a limited liability company as general partner) – This type of company is a combination of limited liability and limited partnership company.
Töchtergesellschaft (Subsidiary) – This is a semi-independent company from the parent company. The company is physically independent and has its own balance sheet, accounting system and business asset ownership.
Zweigniederlassung (Branch) – This is more like a non-independent sales centre.