Types of Company in Germany

The most common type of company in Germany is the Gesellschaft mit beschränkter Haftung (GmbH), which corresponds to a UK private limited company (Ltd). A GmbH must have share capital of at least EUR 25,000 and can be founded by a single person.
This type of company (Besloten Vennootschap). A simplified version of the GmbH is the UhG Unternehmergesellschaft (haftungsbeschränkt), which corresponds to a simplified limited liability company. Its share capital is EUR 1, and it too can be founded by a single person.
The Aktiengesellschaft (AG) corresponds to a joint-stock company or an English Ltd. Its minimum share capital is €50,000, it can be founded by a single person, and a notarial deed is required both to form and to transfer it.
The Kommanditgesellschaft (KG) corresponds to a UK limited partnership, i.e. an English Limited Partnership. .

The Offene Handelsgesellschaft (OHG) corresponds to a general partnership, i.e. an English GP / General Partnership.

The GmbH & Co. KG is also popular in Germany: a limited partnership (the equivalent of an English Limited Partnership) in which the partner with unlimited liability is a GmbH.

Taxes in Germany

Corporate Income Tax – Körperschaftsteuer

German companies pay corporate income tax at 15% (15.83% including the solidarity surcharge). The tax return must be filed by 31 May each year, although this deadline can be extended on request, and advance payments are made quarterly. A company with its registered office or place of effective management in Germany has unlimited tax liability there.

VAT in Germany – Umsatzsteuer

The VAT rate in Germany is 19%. The reduced rate is 7% and applies to food, newspapers and books. VAT is charged on supplies of goods and services in Germany, imports of goods into Germany or into the Austrian areas of Jungholz and Mittelberg, intra-EU acquisitions of goods by a business in the course of its business, and the acquisition of a means of transport from another member state. VAT registration is compulsory if turnover reached €17,500 in the previous year and is likely to exceed €50,000 in the current year. Alongside compulsory registration, voluntary VAT registration is also possible in Germany.

The dividend tax rate is %.
Annual fees for the companies register and the registered office.

Bank Account

A German company can open an account mainly in Germany, but also in other EU member states.

Fees and Costs in Subsequent Years:

We will always remind you in advance of the deadlines for paying annual fees and filing tax returns.