Germany at a glance
Germany is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Germany
- GmbH (limited liability company) The standard German private company form. EUR 25,000 minimum capital, requires notarisation and a commercial-register (Handelsregister) entry.
- UG (haftungsbeschränkt) The "mini-GmbH", founded from as little as EUR 1; it must retain profits until reserves reach EUR 25,000, then can convert to a GmbH.
| Corporate tax | Around 30% combined. Federal corporate income tax is 15% plus a 5.5% solidarity surcharge on that tax (15.825% together), plus a municipal trade tax (Gewerbesteuer) of roughly 7% to 17% depending on the municipality. |
|---|---|
| VAT rate | Standard VAT is 19%, with a reduced 7% rate. |
| Dividends & payroll taxes | Dividends to individuals bear the 25% flat withholding plus the solidarity surcharge. Personal income tax reaches 45%, employer social contributions add roughly 20% up to the ceilings, and municipal trade tax is what lifts the combined corporate rate to about 30%. |
| Minimum share capital | EUR 25,000 for a GmbH, of which at least EUR 12,500 must be paid up before registration. The UG variant can be founded from EUR 1. |
| Setup time | About 2 to 4 weeks: notarisation of the deed, opening a bank account and deposit, then entry in the commercial register (Handelsregister). |
| Remote setup | Partial. Fully remote online formation of a GmbH or UG via secure video notarisation has been possible since August 2022, but in practice it remains harder for non-residents, and a German notary and bank account are typically still needed. |
| Director / residency | No legal residency requirement for the managing director (Geschäftsführer); 100% foreign ownership is allowed. |
| Banking options | A German business account is needed to deposit the share capital and can be difficult for non-residents; fintechs such as Qonto and N26 Business are common alternatives. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
The largest EU economy; the GmbH is the default private company form. Combined corporate taxation (~30%) is among the higher rates in the EU, though a 2025 federal program legislated a gradual cut from 2028.
How to register a company in Germany
Step by step, this is how a Germany formation actually runs:
- Choose GmbH or UG. The GmbH needs EUR 25,000 capital with at least EUR 12,500 paid in; the UG (mini-GmbH) starts from EUR 1 but must retain a quarter of profits until it converts.
- Draft and notarise the articles. A German notary must authenticate the deed; since 2022 this can happen by secure video, though non-residents should plan the identity requirements early.
- Open the account and deposit capital. The paid-in capital goes to a German business account; fintechs like Qonto handle this faster than branch banks for non-residents.
- Register in the Handelsregister. The notary files electronically; entry typically follows within 1 to 3 weeks.
- Trade office and tax office. Register the business with the local Gewerbeamt and complete the Finanzamt questionnaire to get the tax number and VAT ID.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in Germany costs
Notary and court fees for a standard single-shareholder GmbH usually land between EUR 600 and 1,000; the UG with model articles is cheaper. The trade office registration is a small double-digit fee, and IHK chamber membership starts around EUR 150 a year. German compliance is accountant-driven: expect roughly EUR 150 to 350 a month for bookkeeping plus year-end statements.
Form your German company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Germany, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Germany
Founders from outside the EU can own and run a German company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Germany up front, so there are no surprises.
Germany fits companies selling into the German market, hardware and B2B businesses that benefit from the GmbH's reputation, and funded startups hiring locally. Costs and formality are the highest in this list. If you only need an EU entity and have no German customers or staff, a lighter jurisdiction is usually the faster path.
After registration: what Germany expects each year
Annual financial statements must be prepared and filed electronically for publication (small companies file abbreviated versions). Corporate tax, trade tax and VAT returns are annual with monthly or quarterly prepayments; payroll adds monthly filings. Small GmbHs are audit-exempt, but the publication duty catches many founders by surprise.
Germany and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a German company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Germany against other countries, see company formation in Europe.