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Important steps for Germany Company Formation

· Company Formation,Business Coach,Trends

Why Setting Up a company in Germany?

The German market is open to venture capital in all sectors. There are no state-controlled industries, no permanent currency or administrative controls, and there are no substantive restrictions on foreign investment in Germany. Foreign investors are usually subject to the same conditions as German investors.

As a modern constitutional country with transparent and reasonable laws, Germany provides a high standard of legal protection. Among all countries, Germany ranks fourth in terms of legal security.

The German banking system and the German financial services industry have developed steadily.

Germany is one of the most active trading nations in the world, the largest market and economy in the European Union, and the third largest economy in the world. The German economy is characterized by privately owned SMEs, namely “Mittelstand” (85% of all companies). This makes the German industry very flexible, multifaceted and competitive.


"Made in Germany" - the world famous trademark and quality seal. It represents the highest quality and plays an important role in maintaining Germany’s position as the world’s export leader. Future industries such as environmentally friendly energy production and nanotechnology are increasingly important.

Germany's central location in Europe makes it a centre for goods and services. Germany has a highly developed infrastructure - a tightly integrated road, rail and international airport network and access to sea routes, ensuring fast connections.


More than 7 million foreigners live in Germany. About 70% of German blue-collar and white-collar workers speak English. Foreign communities have their own schools, mosques, shops and restaurants. For example, a large number of Gulf Arabs live in Wiesbaden, Japanese in the Düsseldorf area, many Koreans in the Frankfurt area and Chinese in Hamburg.

On Demand International provides a suitable legal structure for each type of business. According to German law, one of the most important forms of company is a limited liability company. It is designed to meet the requirements of small and medium-sized businesses (usually family businesses and owner-managed companies). Nearly a million companies in Germany have chosen a legal form limited liability company. In 2008, the German private limited company law has been fully updated. It is now easier and straightforward to form and operate a limited liability company. A company formation in Germany can even operate abroad.


Anyone can do business in Germany - regardless of their nationality or place of residence. There is no specific investment legislation in Germany, nor is there a minimum percentage of German equity (sponsorship) required for foreign entrepreneurs to do business. Foreign investors can choose from various legal forms of doing business in Germany.


A limited liability company is a very common company in Germany. This form is used by German medium-sized companies and subsidiaries of foreign companies in Germany. The company combines a high degree of flexibility with relatively few obligations. It can be set up by an optional number of shareholders. At least one shareholder (private or private entity) is required to use the Foundation of a single company. The nationality and place of residence of the shareholders and the limited liability company’s managing directors are irrelevant. Its office can be registered in different places and then registered in the place where it actually operates. The place for its commercial activities may even be abroad. However, a limited liability company must have a Deutsche Post address.


A limited liability company must register itself with a share capital of at least €25.000,00. It can be provided in cash or in kind (such as real estate or patents). The founding behavior and the company's articles of association must be notarized. After the registration is completed, the company will be established.


The limited liability company is managed and represented by a managing director ("Geschäftsführer") selected by the shareholders ("Gesellschafter"). Shareholders can also be managing directors. The managing director can be guided by shareholders' resolutions.

The formation procedure of a GmbH can be divided into the following 5 steps:

Company Formation Procedure

On Demand International assists its foreign clients at all stages of its business activities in Germany and provides personalized and personalized advice for their projects. We are happy to provide you with more details on this topic. We also provide comprehensive assistance for all issues related to visas. Please do not hesitate to contact us.

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