Overview of Germany Company Registration

Germany is known for offering visas for self-employment and freelancing and is considered one of the strongest economies in Europe. Those Indians who are interested in establishing their business in Germany require a residency and a correct visa. There are several factors to be kept in mind in order to do Germany company registration. Germany company registration involves selecting the appropriate form of company to be registered which is followed by the drafting of the articles of association and other factors which will be discussed further.

Benefits of Germany Company Registration

The below mentioned are the benefits of Germany company registration:

• A major benefit stands out to get benefited because of the strong economy.
• Germany stands out to be the most central location in the European continent to expand the business in the country.
• One can get benefitted from the strong workforce that is available in the country.
• The benefit of adequate infrastructure that stands as an efficient manner for the business operations.
• The use of modern technology and innovation that helps a business to proceed efficiently.
• To benefit from the transparent laws and regulations of the country.
• Various tax benefits are provided by the government of the country.
• Business enterprises also benefit from the quality of life.
• The access towards the European market.
• To provide for the financial support by the government.

Different Types of German Company Registration 

In Germany, there are mainly three types of legal business structures for businesses. As a business owner, each business structure has different obligations and responsibilities. The business structures for Germany company registration are:

• Sole proprietorship (Einzelunternehmen)

A business that is owned and run by only one member, such a business structure is called as a sole proprietorship. It is a small business where the owner of the business is self-employed or a freelancer. In this type of business, the owner is responsible for the debts as well as various obligations of the business. Sole proprietors need to register themselves with the Commercial Register but a freelancer has to apply to the Tax Office for the tax number form.

• Limited Liability Partnership (GmBH)

A Limited Liability Company has one shareholder. It must have a notarised AOA (Article of Associations). An LLC must be registered with the Commercial Register and the minimum capital required for registration is 25,000. A company with limited liability can be set up under this business structure.

• Civil Law Partnership (GbR)

A company having one or more partners is said to be a Civil Law Partnership. They are considered a civil code company. Establishing a GbR does not require minimum capital or a written agreement, and it can easily be set up by freelancers and businesspeople. This structure allows the partners to have their assets responsible for the debts of the company.

Essentials of Germany Company Registration 

The basic requirements for Germany company registration are:

• The individual who wants to establish their company or business must be at least 18 years old.
• He/She must not be banned from conducting business or practicing the profession that they want to set up.
• The applicant must have the correct work permit or residence title.

Documents Required for Germany Company Registration 

The following documents are required in order to do Germany company registration: 

• The passport and residency copies of all the shareholders of the company.
• Memorandum of Association(MOA) and Article of Association(AOA).
• Proof of payment of share capital.
• ComDetails of directors of the company.
• Shareholder or guarantor information.
• Statement of capital.
• Commercial License application form.
• The details of the founder of the applicant company like details of the company’s managers(ID proofs and appointment letters)
• Fee receipt of Canada company registration
• Fit and proper criteria of the managers who are appointed to the company

Process of Germany Company Registration 

The below-mentioned are the basic step to be taken into consideration to do Germany company registration: 

• Choose a Business: To choose a particular type of business structure one of incorporation of a company within the United Kingdom is to select the form of company that one wants to register which depends on the form of commercial enterprise.
• Name Selection: Select the name of the company, selecting the precise enterprise structure, the next step is to pick out a name for the organization that must be precise and not just like the existing organization.
• Collect Documentation: In order to complete the registration process make sure to collect all the documents. 
• AOA Drafting: To further draft the articles of association that are required to be registered with the company.
• Registration with Registrar: To further register with the available commercial register that is available for the company.
• Evaluation of Application: Once the application has been submitted with all the documentation, now the registrar will evaluate the document as well as other information provided by the applicant. 
• Registration Certification: If after evaluation everything is up to date then you will get the registration certification. 
• Open Bank Account: Opening a separate business bank account in the name of the company is necessary to commence the business.
• Tax Office Registration: To register with the tax office that further provides for the tax liability that is available in the country.
• Trade Office Registration: Also to register with the trade office which further helps to proceed with the trade procedures. Should also register with any professional association that is available in the country.
• Social Security Registration: To also register with the social security registration to provide benefits towards the employee.

Post Company Registration Requirements in Germany 

If the applicant has done German company registration, the following steps should be taken to start a business in Germany:

• All the businesses in Germany have to pay taxes at the local tax office or in Germany’s fiscal administration. The taxpayers pay taxes depending on their revenue, business structure and business size.
• In order to operate a business in Germany, the companies need to acquire special permits or license depending on the type of business.
• The company owners should ensure that they have the correct insurance even if the individual is a freelancer or a self-employed individual. 
• It is suggested that businesses and their owners look at health insurance, business liability insurance and accident insurance.
• All the businesses in Germany whether large or small must ensure compliance and enact contracts on time. 

What does it Cost to Run a Company in Germany?

The starting cost of establishing a business in Germany depends on the type of business. For example, a registration fee of 10-40 EUPR has to be paid by self-employed people who register at a Trade Office but it may vary for other businesses. Some companies in certain industries may include membership fees to the Chamber of Industry and Commerce. Running a business in Germany or any other country is very similar. The common business expenses are:

• This includes employee salary and the minimum wage in Germany is 12 per hour.
• Rent of the office space, equipment and utilities are also included.
• Marketing and business development require funds that should be set aside for the growth of the business once after its establishment.
• Taxes should be paid on time so that one can save them and the company from paying penalties and having the right insurance can protect the business in different situations.
• Some extra costs may get added up depending on the size and scale of the business.

Why to Choose Whizseed for the Germany Company Registration? 

Germany company registration is possible for both freelancers and those who want to be self-employed. An individual can choose the appropriate business structure depending on the type of business he/she wants to establish. If you want to register company in Germany but confused than you can take help of Whizseed who is going to provide you assistance from choosing name to getting registration certification. Also after that if you want to take help in post registration compliance we are available for you. Hence in order to do your Germany company registration smoothly onboard us, we are just one click away from you.