Germany Company Registration for Non-Residents

Why Choose Germany?

So, we are not talking about any other country, but Germany is Europe's biggest economic power. From reciprocity, it becomes an engine in balance with the whole region. With good stability, innovation, and skilled workers in the country this is where all business developers want to be.

The economy in Germany is one of the best economies in the world, and this provides a very reliable context for businesses to develop. The place is a hub of several industry fields, from manufacturing to technology.

Germany is at the centre of Europe, giving easy access to other EU countries and providing a near-perfect base for businesses wanting to grow throughout this continent.

Types of Business Structures

Choosing a business structure before registering your company, it is important to choose the right business structure for you. This decision will affect things like taxes and liability, so it is definitely something to give some thought to.

It is the simplest business structure, and it's great for freelancers and small businesses. But the owner is responsible for any of its debts personally.

GmbH: probably the most widely used legal structure in Germany providing for limitation of liability (yes, it is possible also to have a limited partnership or an AG;) What is the minimum share capital €25,000

This format is best for larger companies that are going public. Splash public is more of a corporately secured exchange having a larger minimum share capital and more regulation.

How to Register a Business

It takes a few procedures to register a company in Germany, but don't let that deter you. Here's a quick summary:

1. Choose a business structure: think about what and who your business is and what is best for you in terms of liability, tax, the number of founders, etc.

2. Decide on the name: choose a name for your future business, of course, this name should be unique and not already registered in the German commercial register. Therefore, it will be reasonable to immediately check this nuance before developing your business plan.

3. Prepare articles of incorporation: this is a legal document in which you describe all the features of your future business structure and its functioning. It is necessary to compile it in writing, get notarized, and signed by all founders.

4. Open a bank account: you will need it to deposit the required minimum share capital.

5. Register with the commercial register: submit your notarized Articles of Association, a bank certificate, and other documents to the corresponding local authority’s Handel register.

6. Register with the tax office: and request a tax number, as well as applicable, a VAT number.

Non-Residents’ Requirements

Although the registration of a company in Germany is quite straightforward, as a non-resident, you will face a few additional requirements. These are the main ones:

1. Residence requirement: Even if you decide not to live in Germany, at least one director of your firm must be a resident of the EU or EEA.

2. Address requirement: Your company needs a registered office in Germany. You can opt for a virtual office.

3. Language requirement: All your business documents must be prepared and submitted in German. I recommend you find a local attorney or consultant who can help you with translations.

Tax As the German tax system

may be difficult to understand at first, I think it’s important to get an overall idea to avoid any mistakes.

1. Corporate tax: The rate is 15%, plus a 5.5% solidarity surcharge.

2. Trade tax: Also paid varying by municipality.

3. Double taxation agrees men: Germany has signed such an agreement with over 90 states to avoid double taxation.

Thus, opening a bank account When you are registered, it is time to open a bank account. Once again, the process is not different from the way it is done in your home country. Make sure to have the following documents at your disposal: your passport, residence permit, proof of residence, and a copy of your company’s Articles.