Company Formation in Germany

Germany is a good destination to set-up your company to cater to the large EU Market. YourGlobalPro can assist in Germany for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval, Trademark Registration and Citizenship Services.

About the Country

The Federal Republic of Germany (“Germany”) is a federal parliamentary republic in central-western Europe. The Country is in Western and Central Europe, with Denmark bordering to the north, Poland and the Czech Republic to the east, Austria to the southeast, Switzerland to the south-southwest, France, Luxembourg and Belgium lie to the west, and the Netherlands to the northwest. The below content will explain you in detail about the requirements for the company formation in Germany, know more about the process of trademark registration in Germany and understand Germany Legal and Compliance requirements.


Doing Business Introduction

Germany is having the largest economy in Europe and largest population in Europe. As per Doing business report of The World Bank –Germany ranks 17 for 2017 survey. The process of Incorporation of Company and thereafter running the same is a complicated.

YourGlobalPro is able to assist its client with any type of company formation in Germany, trademark registration in Germany and other recurring services for your business in Germany.

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Incorporation - Types of Business Entities

The various types of entity that can be incorporated in Germany are as mentioned below:

  • Limited Liability Company (with the suffix GMBH)
  • Stock Company (with the suffix AG)
  • Regular Partnership (with the suffix OHG)
  • Limited Partnership (with the suffix KG)

Time Frame for Incorporation of Company in Germany varies from depending on the type of entity selected. Each business type has its own advantages and disadvantages. YourGlobalPro estimates the time required for the process of company formation in Germany to be 12-18 working days.

Benefits of Registration of a Company

Below are few advantages of company formation in Germany:

  • A highly-sophisticated infrastructure
  • The most innovative nation in Europe
  • Leads the world in trade in research-intensive good
  • Internationally recognized high-tech clusters are located in the Country
  • Home to more universities than any other country
  • Responsive to the innovation and high technology
  • Government regulation is protective
  • Great potential for foreign entrepreneurs and investors
  • Educated labor force, human capital, and corporate R&D

Tax Registration and Filing

Corporations, such as stock corporations and limited liability companies having place of management in Germany are subject to corporate income tax on the worldwide income, unless otherwise provided in tax treaties. Below is some important point in relation to taxation in Germany:

Corporate Income Tax Rate 15%
Capital Gains Tax Rate 15%
Trade Tax Rate 14%
Branch Tax Rate 15%
Value-Added Tax (VAT) Standard Rate - 19%
Reduced Rate -7%
Dividends 25%
Interest 0%
Royalties from Patents, Know-how 15%
Branch Remittance Tax 0%
  • Tax year is the calendar year
  • Annual tax returns must be filed by 31 May of the year following the tax year
  • Prepayments of trade tax are due on 15 February, 15 May, 15 August and 15 November
  • Corporate income tax liability at one-quarter of the liability for the previous year, are due on 10 March, 10 June, 10 September and 10 December
  • German tax law requires tax consolidation for a German group of companies

Double Tax Treaty

Germany has double taxation treaties with over 90 countries.

Trademark registration

In Germany, the German Patent and Trade Mark Office reviews and grants approval for trademark registration and intellectual property rights. Trademark Registration in Germany is valid for 10 years from the date of application and can be renewed for further 10 years before expiration date. It is recommended commence the trademark registration in Germany as soon as possible to ensure adequate protection. The time frame to complete the trade mark registration in Germany takes approximately 6-8 Months.

YourGlobalPro is fully equipped to assist you with the process of trade mark registration in Germany for your business. For assistance or advice in the matter of the trademark registration in Germany or intellectual property – please feel free to write or contact us.

Secretarial Compliance

The investor before commencing business in Germany needs to register itself with the German commercial registry.

  • All companies Must have registered office
  • The Large companies are mandatorily required to submit financial statements consisting of the balance sheet, a profit and loss statement, notes and a management report, and an audit certificate at the German commercial registry and publish financial statements in the German Federal Gazette
  • The small Companies have to file only the balance sheet and notes at the German commercial registry and announce the filing of their documents in the German Federal Gazette.
  • All the Medium-sized companies are only required to file their financial statements at the German commercial registry and to announce about the same in the German Federal Gazette

Accounting Services

The German Commercial Code accompanied by the German General Tax Code provides for the accounting requirements in Germany. All the Companies are required to prepare proper books and accounting records that comply with German regulations.

YourGlobalPro can assist you with the entire bookkeeping and accounting services for your Germany Business Set up as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

The German law requires the annual financial statements of medium-sized and large companies to be audited. All the companies are permitted to use IFRS or German generally accepted accounting principles (GAAP). However, the companies whose securities trade in a regulated market are required to prepare consolidated financial statement using International Financial Reporting Standards (IFRS), under the provisions of the EU International Accounting Standards (IAS) Regulation.

YourGlobalPro provides you auditing services as required by your business.


The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening. The major banks in Germany are Deutsche Bank, Dresdner Bank, Commerzbank, Goldman Sachs, Chase Manhattan, Deutsche Bundesbank, HSBC Trinkaus, Westdeutsche Landesbank, Merrill Lynch & Co. All banks are stable, reliable and offer the same level of services.

YourGlobalPro facilitates all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Germany.

Legal and Compliance

Below is the various Germany legal and compliance requirement to be followed by incorporated entities:

  • At the end of the Financial Year Companies are required to prepare financial statements consisting of a balance sheet and a profit and loss statement.
  • There is no Foreign Exchange control, but there are several reporting requirements like Any payment transfer exceeding €12,500 from or to Germany must be reported.
  • If participation in direct investment from or to Germany, equals or exceeds 10% must also be reported.
  • The customs form must be completed if more than €10,000 in cash is carried when crossing a non-EU border.
  • The disclosures requirement by the German Commercial Code varies depending on the company’s size

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Germany:

  • A resident of other national who is interested in working in Germany must obtain a resident’s permit and a corresponding work permit to work and leave in the country
  • A work permit has validity of a period of a year with an option to extend it for a further two or three years
  • For the EU resident visa is not required for working in Germany.
  • Employees must have written employment contracts
  • Working days are all week days excluding Sundays and public holiday, however normally employee work from Monday to Friday (five-day week).
  • The average working time is between 35 and 40 hours.
  • A statutory claim for 20 working days’ vacation per calendar year for employees
  • Fully paid maternity leave to Female Employee
  • Maximum of three years’ parental leave per child.
  • The employer is required to give a written notice of termination to the employee.

Country Statistics

Capital Berlin
Largest City Berlin
Total Area 357,168 Sq. Km.
Population 82,175,700
Density 227/ Sq. Km
Currency Euro (u20ac) (EUR)
Government Federal Parliamentary Republic
Official Language German
Religion Not religious: 34.4%
Roman Catholicism: 28.9%
Evangelical Church: 27.1%
Islam: 5.5%
Other Christians: 3.3%
Other religions: 0.8%
Business Offices Hours Mondays to Fridays 09:00 - 18:00
Banks and Exchange Houses Hours 08:30 - 13:00 and 14:30 - 16:00 (on Thursday until 18:00)

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