Setting up a company in Germany
How to establish a company in Germany ?
- Choose a business structure: In Germany, you can choose to set up a sole proprietorship, a partnership, or a corporation. Each type of business structure has its own advantages and disadvantages, so you should consider which one is most suitable for your business.
- Choose a name for your company: Your company’s name should be unique and comply with German regulations. You can check the availability of a name by searching the German Company Register (Handelsregister).
- Register your company: To register your company, you will need to file the necessary documents with the local trade office (Gewerbeamt). You will also need to register for VAT and obtain a tax number.
- Obtain any necessary licenses and permits: Depending on the type of business you are setting up, you may need to obtain certain licenses and permits. For example, if you are setting up a restaurant or a store, you will need to obtain a trade license (Gewerbeschein).
- Set up a business bank account: You will need to open a business bank account in order to manage your company’s finances.
- Register for social security and health insurance: As a business owner in Germany, you are required to register for social security and health insurance.
- Consider hiring an accountant: It can be helpful to hire an accountant to help you manage your finances and ensure that you are complying with German tax laws.
If you have any further questions, please don’t hesitate to contact us.
How can a lawfirm help?
A lawyer can help you establish a company in Germany in several ways. For example:
- A lawyer can advise you on the most suitable business structure for your company, taking into account your specific circumstances and goals.
- A lawyer can help you prepare and file the necessary documents for registering your company with the local trade office (Gewerbeamt).
- A lawyer can advise you on any licenses or permits that you may need to obtain in order to conduct your business legally in Germany.
- A lawyer can help you negotiate and draft any contracts or agreements that are necessary for your business, such as leases, employment contracts, and supplier agreements.
- A lawyer can provide ongoing legal support and guidance as you run your business, helping you to navigate any legal issues that may arise.
In general, a lawyer can provide valuable assistance and protection for your business, helping you to minimize risk and ensure compliance with German laws and regulations.
Some differencies about setting up a company
- “Foreign company” or “foreign enterprise“: These terms refer to a company that is based outside of Germany and is looking to establish a presence in the country.
- “Subsidiary“: This term refers to a company that is owned or controlled by another company, often referred to as the “parent company.” A subsidiary can be a separate legal entity or it can be a division of the parent company.
- “Branch office“: This term refers to a place of business that is established in Germany by a foreign company. A branch office is typically not a separate legal entity, but rather an extension of the parent company.
- “Representative office“: This term refers to a place of business that is established in Germany by a foreign company for the purpose of conducting research, promoting the company’s products or services, or maintaining contact with customers and suppliers. Unlike a branch office, a representative office does not have the authority to engage in commercial activities or enter into contracts on behalf of the parent company.
It is important to note that each type of business presence has its own legal implications, so it is important to carefully consider which one is most suitable for your company’s needs. A lawyer can provide guidance on the pros and cons of each option and help you choose the best one for your business.