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Starting a Mini- GmbH in Germany

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Legal Entities in Germany

• In order to start a business in Germany, any businessman is required to incorporate a company following the regulations imposed under the local legislation.

• The Commercial Law provides numerous legal entities, designed to satisfy the needs of various types of investors.

• One of the ways through which investors can operate in Germany is through a mini- GmbH, which is a type of limited liability company.

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What is a German Mini-GmbH? >>

• The mini GmbH (Unternehmergesellschaft, UG) is also referred to as a limited liability entrepreneurial company.

• The legal entity represents a sub-form of the regular German limited liability company or GmbH.

• The main difference between a GmbH and a mini-GmbH is given by the share capital required for the incorporation.

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>> What is a German Mini-GmbH?

• A German mini GmbH requires a minimum share capital of 1 euro.

• The minimum share capital for a regular GmbH is set up at EUR 25,000.

• However, the mini-GmbH will have to accumulate a quarter of its annual profit until it reaches the minimum share capital established for a regular GmbH.

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Register a German Mini-GmbH? • When the mini-GmbH will reach the

minimum share capital available for a regular GmbH, then the legal entity will become a German GmbH.

• The mini-GmbH will need to be registered with the German Companies Register only after it reached the full amount of the share capital.

• Our team of German attorneys can offer more details on this matter.

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How to Set up a German Mini-GmbH? >>

• The company is set up following the same procedure available for a GmbH.

• The legal entity will be registered with a German notary.

• The mini-GmbH can have only one shareholder.

• The procedure is very simple, as the notary will have to fill in a template contract.

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>> How to Set up a German Mini-GmbH? • The shareholder will need to provide a

proof of depositing the minimum share capital.

• A German mini GmbH must have its share capital paid in cash.

• In the situation in which the mini-GmbH will have more than one shareholder, it is necessary to draft a customized contract.

• Further on, the notary will send the documentation to the Trade Register.

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Advantages of a German Mini-GmbH >>• One of the main advantages of a mini-

GmbH is the share capital, which can help many businessmen to start a company in Germany.

• Another advantage refers to the simple registration procedure.

• It is also important to mention that the costs associated with this procedure are very small.

• Our team of lawyers in Germany can assist businessmen interested in opening this type of company.

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>> Advantages of a German Mini-GmbH • The mini-GmbH can represent a

better alternative for those who want to operate as sole traders in Germany.

• In this sense, we mention that in a mini-GmbH the investor will be liable for the company’s debts only in respect to the amount of shares he owns in the business.

• In a sole trader, the investors are fully liable for the company’s losses.

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Consultancy Services in Germany

• Our law firm in Germany can assist investors to register any type of company available under the local legislation.

• At the same time, it is important to know that businessmen can also purchase a company here.

• Our German lawyers can also assist with extensive information related to the taxation system available in Germany. Contact us now for more details.

Thank you for your attention!

• For more information please contact us at:

(+44)203-287 0408 (for international clients)

office@lawyersgermany.com

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