How to Register A Company in Germany

How to Register A Company in Germany

Aside from being the world’s fourth-largest economy, Germany has its prospects in being one of the world’s largest and most stable economy. It is considered among the top countries for its financial development. It is considered one of the best countries for business due to its central location, as well as having convenient access to the EU markets.

Are you an entrepreneur looking to start a company in Germany but not sure on how to begin? This is for you. Here are simple steps for registering a company in Germany.

1. The first step in registering a company in Germany starts with drafting out an Article of Association (AoA,) including other essential documents. This includes Visa for directors who are not residents, passports and applicant signatures.

The AoA specifies the company regulations and helps define the company’s purpose. The document states how tasks should be accomplished within the company.

Visas of the directors or shareholders who are not residents are necessary for proper documentation. The details of the company director and shareholders should be included in the company registration form.

The company needs to file an application with the local chamber of the Department of Industry and Commerce for verification of the company name. Verification of company name is essential for building credibility and trust.

When choosing a company name, take into consideration the product of the company. The name of the company should be available, easy to pronounce and remember, short and simple.

This helps in easy identification by customers. It also encourages active referrals because the name of the company is simple and easy to remember.

A corporate bank account is required for all the corporate forms that are available for incorporation in Germany. This is required for financial tracking and taxation. If you are looking to start a limited company, it is best that you open a separate account for appropriate documentation of shares, profits and any payments made relating to the organization.

After collection of the required documents and information, the next step is filling the questionnaire which is obtained from the local Gewerbeamt. It can be filled online or in person. The questionnaire contains a series of questions aimed at giving an insight into the organization which helps in decision making.

Every company registered in Germany is eligible to receive an 11-digits tax number. Before a tax number is given, the appropriate authorities will check your company questionnaire carefully before granting your company a tax number. This tax number is used in tax-related matters as well as invoice.

To register a company in Germany, statutory accident insurance is mandatory. Your company must be registered with Verwaltungs-Berufsgenossenschaft (VBG) as it is responsible for you and your company. That is, whatever accident that occurs within the company including any staff, the company bears no expense in recovering or paying for damages.

If you wish to employ your own staff, you will need a company number. This can be obtained or gotten from the employment agencies. These recruitment agencies help in allocating ideal candidates for an employer looking to hire for specific job opportunities.

This is also beneficial because staff with years of experience in your company’s business are being recruited to work in your organization. These agencies work hand in hand with the employers and often have a better idea of what the company needs in terms of employment.

Anyone wishing to register a company that must be entered in the commercial register needs to have a certificate of Incorporation and article of association which are certified by the notary public. The following documents are needed in order to prepare for the notary appointment.

Articles of Association (AOA).

Documents showing the management board structure.

Visas of directors in case of foreign residents.

Registered office address of the business.

Information on the shareholders and directors.

You will have to deposit the share capital into the business account. This is done after the notary appointment and then a copy of the deposit is sent to notary, promptly.

After the deposit slip has been sent to the notary for verification, the Incorporation of the company process begins which may take up to 10 days.

After all the necessary steps have been taken, you are advised to wait patiently and to beware of scams The notary will always notify you whenever your company has been successfully registered.

Registration of companies in Germany takes place at the Trade Licensing Office. This is where companies can apply for a business license. The document required at the Trade Licensing Office is an identity card.

However, for certain occupational groups, additional documents are required in order to register a trade.

Setting up a company in other countries is a great way of promoting a business. But also put into consideration the product of the business, the country of registration choice, the demand for the product you intend to sell to the market, and so on.

And also, proper research should be done on any country you are looking to start business in. Know the country’s demands, meet up with the necessary requirements and so on to avoid early bankruptcy.

Companies’ registration online tends to be faster and easier than registering in person. However, be careful while registering. Make sure to read through carefully.

–Can foreigners open a company in Germany?

Surprisingly, the German government is open to the establishment of any kind of business regardless of if it’s run by a resident or a foreigner.

-How much does it cost to start a business in Germany?

Incorporation costs in 1 year amounts to £4,950. The total average fee per engagement sums up to £14,090. This includes registered office, government fees and bank account.

-How long does it take to register a company in Germany?

It takes about two weeks for the registration process to be completed.

-Can I use my personal bank account to register my company?

If you run a limited company, you cannot use your personal account. This is because your company is incorporated with Companies House which is a separate entity to you legally and financially.

-How long does it take for my company registration to be approved?

Most manual applications take more than four weeks to be completed. But registration online takes a shorter time.

-Who is allowed to register a business?

Technically anyone who falls under the said category can register a business.

• Online shop owners.

• Retailers.

• Service providers and so on.

-Can one person be a limited company?

A single individual can set up a limited company whereby he is the shareholder as well as director.

-Why is company registration important?

It offers the company limited liability protection and there is no way of losing personal property.