Foreign companies may, of course, do business all of Europe. Thus, legally, there is no necessity to establish a national company under German rules. However, there are many good reasons to found an “original” national company, if only because customers have more sympathy towards a domestic firm compared to a foreign company. There are numerous options for establishing a German company. The three most relevant are presented here:
1) The most popular is the “Gesellschaft mit beschränkter Haftung”, in short “GmbH” (private limited company): A private limited company may be established by a single shareholder. A minimum capital of 25,000 Euros is required. The establishing of the company must be notarised. The company is officially registered a few weeks after notarisation andmay then start its business activities. Details on formation of a GmbH here
2) The suitable legal form for bigger enterprises is the “Aktiengesellschaft”, in short “AG” (public limited company; corporation) which requires a minimum capital of 50,000 Euros.
3) Finally there is the “Gesellschaft mit beschränkter Haftung & Co. KG” (private limited company with a limited partner), which is a combination of two legal forms which is chosen mainly for tax reasons.
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Here is an overview of legal business forms in Germany: PDF Download
For general information on investment in Germany: Investment Guide to Germany
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