Germany

Starting a Business in

Germany

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income (GNI).

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standardized Company

  • Legal Form: Unternehmergesellschaft (haftungsbeschränkt) : UG
  • City: Berlin

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No. Procedure Time to Complete Associated Costs
* 1 Clear the name of company at the local chamber of industry and commerce


1 days (simultaneous with previous procedure) no charge
2 A notary notarizes the articles of association and memorandum of association

The fees depend on value of the share capital, with a basic 10/10 fee calculated as follows:
- Up to EUR 1,000: fee is EUR 10.
- From EUR 1,000 to EUR 5,000: fee of EUR 8 is added for each EUR 1,000 of share capital.
- From EUR 5,000 to EUR 50,000: fees of EUR 6 are added for each EUR 3,000 of share capital.
- From EUR 50,000 to EUR 5,000,000: fees of EUR 15 are added for each EUR 10,000 of share capital.

If more than one contract partners (shareholders) are involved, the German Cost Regulation Act provides for a double fee (so-called "20/10-fee" / "20/10-Gebühr"), which amounts to EUR 1,009.

 1 day EUR 1009
3 Open a bank account

In-kind contributions must be made in full. Capital must be paid in to the free disposition of the management. Capital cannot validly be deposited before the notarization of the articles of association.
1 day no charge
4 Notary public files the articles of association with the local commercial register, kept at local courts

Applicants must submit to the Commercial Register in electronic form, among other documents (a) the notarized articles of association; (b) the deed of appointment of the directors, if not included in the articles; (c) a list of the company’s shareholders; and (d) the assurance that the statutory minimum paid-in capital has been paid in to the free disposition of the management.

Pursuant to the applicable registration laws, the Commercial Register must decide on the company’s registration without undue delay. The Commercial Register publishes the registration on a central electronic platform (www.handelsregister.de)and notifies the local Chamber of Industry and Commerce and the tax office of the new company.

Costs to file the articles of association with the local Commercial Register include the following:
- Notary fees for registration are half the fees for the notarization of the articles and foundation agreement. No extra notary fees apply if the notarization and filing of the articles of association (by notary public) are combined. The applicable fees amount to a quarter of the fees set forth under Procedure 2 when the notary used in proc 2 differs from the one of proc 4. All amounts are plus 19% VAT. If the application for registration is notarized together with the articles of association, the notarization of the application does not trigger any additional fees.
- Registration fees with local court: EUR 150 (if in-kind capital contributions, the statutory registration fee amounts to EUR 240)

The registration of a new GmbH incurs fees of EUR 150 if the capital contributions are made in cash and EUR 240 if part or all are made in kind.
The Commercial Register notifies the local Chamber of Industry and Commerce and the tax office of the new company.
7 days EUR 402
5 Notify the local office of business and standards of the establishment of the company

Certain businesses (e.g. restaurants, brokers) must apply for a trading permit (Gewerbeerlaubnis). However, the permit does not have to be presented at the time the registration of the GmbH / UG (haftungsbeschränkt) is applied for at the commercial register. If no such permit is required, start-up companies must simply notify the local trade office which issues a trading license (Gewerbeschein). This notification procedure also covers registration formalities with the central statistical office, the relevant chamber of industry and commerce, the local labor office, and the social security and federal health insurance office.
1 day EUR 31
* 6 Register with the professional association of the relevant trade

The professional associations are carriers of occupational accident insurance. Registration must be done within a week of the founding of the business (that is, the notarization of the articles of association).
1 day (simultaneous with procedure 5) no charge
* 7 Notify the local labor office of the establishment of the company

The registration can be informal, both in writing and by phone. The Labor Office then assigns an eight-digit operating number, which is needed to report social security.
1 day (simultaneous with procedure 5) no charge
* 8 Register employees for health and social insurance

The social security and federal health insurance office notifies the local labor office and the annuity insurance carrier (Deutsche Rentenversicherung Bund).The competent social security and federal health insurance office collects payment for mandatory health, unemployment, and annuity insurance.
1 day (simultaneous with procedure 5) no charge
* 9 Mail out the documentation to the Tax Office

Registration must be done within a month of the opening of the business, and not later than a month of the notarizing of the articles of association. After the tax office is notified of the company’s business activity by the trade office, the tax office sends the company a questionnaire requesting the company’s business data.
1 day (simultaneous with procedure 5) no charge
* Takes place simultaneously with another procedure.
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