Company Formation in Germany for Non-Residents
Germany is a member of the European Union and the euro area. The limited liability company (GmbH) is the standard form for operating businesses and is entered in the Commercial Register (Handelsregister) kept by the local court (Amtsgericht). Formation requires notarised articles of association under the GmbHG.
We support non-resident founders at every stage: company registration, the registered office address, accounting and tax reporting, employment and payroll, and corporate bank account opening.
At a Glance
Jurisdiction
Most Common Legal Entity
Minimum Share Capital
Ideal For
Estimated Incorporation Time
Corporate Income Tax
VAT
Registered Office
Why Entrepreneurs Choose Germany
Germany combines EU and euro-area membership with a widely recognised limited-liability form.
Key advantages include:
- Membership of the European Union and access to the European Single Market;
- The GmbH as a familiar form for banks, partners and regulators;
- Clear statutory rules under the GmbHG;
- Foreign nationals may be shareholders and managing directors (residence permission is needed if they manage from Germany);
- A large domestic market and developed banking infrastructure.
Company Registration in Germany
A GmbH comes into existence with full legal capacity once entered in the Commercial Register. Applications are filed electronically through a notary.
- Articles of association must be in notarial form (GmbHG § 2);
- Before registration, at least one quarter of each cash contribution must be paid in, and overall paid-in cash plus contributions in kind must reach at least EUR 12,500 (GmbHG § 7);
- The filing includes the articles, shareholder list, managing-director details and a domestic business address;
- Contributions in kind must be fully available to the managing directors before filing;
- Simplified formation with a model protocol is available for up to three shareholders and one managing director (GmbHG § 2 Abs. 1a).
Company Forms in Germany
Limited Liability Company (GmbH)
Minimum share capital is EUR 25,000. Shareholders are not personally liable beyond their contributions. Managing directors represent the company and are disclosed in the Handelsregister.
Entrepreneurial Company (UG)
The Unternehmergesellschaft (haftungsbeschränkt) can be formed with share capital below EUR 25,000 (from EUR 1), subject to statutory profit retention until EUR 25,000 is reached.
Registered Office Address
Every GmbH must state a domestic business address in Germany in the Commercial Register filing (GmbHG § 8).
We help arrange a suitable registered office address and the documents needed for the notarial filing and bank onboarding.
Taxation Overview
Corporate Income Tax
According to PwC Worldwide Tax Summaries (Germany, last reviewed 30 June 2026), corporate income tax with solidarity surcharge is 15.825%. Municipal trade tax typically ranges from about 8.75% to 20.3%. Compiled by Lexbit from PwC.
Value-Added Tax
The standard VAT rate is 19% (PwC). Reduced rates may apply to specific supplies.
Withholding Tax
Domestic dividend withholding tax is generally 25% plus solidarity surcharge before treaty relief (PwC).
Payroll Taxes
Employers withhold wage tax and social-security contributions under German payroll rules. Confirm exact rates with a payroll adviser.
Accounting and Tax Reporting
German companies must keep proper books and file corporate tax, trade tax and VAT returns. Annual financial statements are prepared under German commercial law (HGB) unless IFRS applies.
Our accounting team supports bookkeeping, tax filings and communication with the Finanzamt.
Employment and Payroll
German companies can hire staff locally. Employers register employees for social security and run monthly payroll with wage-tax withholding.
We support employment contracts, employee registration and monthly payroll reporting.
Germany is particularly well suited for:
Key Advantages
- Membership of the European Union and the euro area
- Access to the European Single Market
- GmbH with clear GmbHG capital and governance rules
- Foreign shareholders and managing directors permitted (subject to residence rules if working in Germany)
- Developed banking and industrial infrastructure
Important Considerations
- notarial formation and Handelsregister formalities
- the EUR 25,000 GmbH capital requirement (or UG profit-retention rules)
- municipal trade tax in the chosen location
- statutory accounting and tax filings
- banks’ KYC requirements when opening corporate accounts
The Incorporation Process
01
Initial Consultation
02
Assessment of Your Business Model
03
Selection of the Appropriate Corporate Structure
04
Preparation of Incorporation Documents
05
Company Registration
06
Issuance of Corporate Documents
After registration, we can assist with tax registration, opening a corporate bank account, accounting, payroll and ongoing corporate support.
Required Documents
Depending on the nature of the project, the following documents may be required:
- Identification documents for shareholders and managing directors;
- Proof of residential address;
- Information about the intended business activities;
- Details of founders, shareholders and beneficial owners;
- Documents confirming the right to use the German business address;
- Any additional documentation required by the notary or registry court.
Frequently Asked Questions
Yes. Foreign individuals and companies may be shareholders. Managing directors do not have to reside in Germany, but anyone who manages from Germany needs appropriate residence or work permission.
Yes. A domestic business address must be stated in the Handelsregister application.
EUR 25,000 for a standard GmbH. At least EUR 12,500 must be effectively contributed before registration (GmbHG § 7). A UG may start with lower capital under statutory conditions.
After incorporation we prepare the KYC pack and introduce suitable banks or payment providers. Account opening remains subject to each institution’s due diligence.
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Start with a Consultation
Our team will assess your business needs, advise on the most suitable corporate structure, prepare the required documentation and coordinate registration, the registered office, accounting, payroll and banking.
Schedule a consultation today and take the first step towards establishing your company in Germany.