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The German corporate form for IPO tracks, institutional JVs, and family-office holdings. €50,000 minimum capital, mandatory three-member Aufsichtsrat, founding audit in most cases.
An Aktiengesellschaft (AG) is Germany's stock corporation — the legal form used by BMW, Volkswagen, and Siemens, and every company listed on the Frankfurt Stock Exchange. For most foreign founders, the GmbH is the better starting point: the AG costs 2–5× more annually, requires a mandatory supervisory board (Aufsichtsrat) from day one, and triggers a founding audit whenever any founder also serves on the board. An AG is justified in five specific scenarios: IPO track, institutional JV governance, BaFin-regulated financial activities, family-office holdings with bespoke share classes, and pre-IPO investor-readiness.
| Feature | AG | GmbH |
|---|---|---|
| Minimum capital | €50,000 (AktG §7) | €25,000 (GmbHG §5) |
| Supervisory board | Always — min. 3 members (§95) | Only if >500 employees |
| Founding audit | Usually mandatory (§33) | Not required (cash) |
| Annual statutory audit | Always (HGB §316) | Only if medium/large |
| Public accounts disclosure | Always — full (HGB §325) | Size-based exemptions |
| Formation timeline | 6–10 weeks | 4–6 weeks |
| Year-1 governance cost | €15,000–€60,000+ | Minimal |
| IPO-eligible | Yes | No (conversion required) |
Step by step, handled for you.
AG vs GmbH Assessment
We confirm whether an AG is genuinely warranted — IPO track, JV requirement, BaFin-regulated activity, or institutional investor mandate. For all other cases, we recommend GmbH with a later Formwechsel (UmwG §§190–213).
Draft the Satzung
Articles of Association drafted per AktG §23(3): company name, registered seat, business object, Grundkapital, share denomination, share type (Namens/Inhaber), Vinkulierung if applicable.
Aufsichtsrat Composition
At least 3 Aufsichtsrat members required by AktG §95 from day one. We advise on director compensation (AktG §113) and independence requirements.
Gründungsprüfung Coordination
Founding audit triggered when any founder also serves on Vorstand or Aufsichtsrat (AktG §33(2)) — true for ~80–90% of foreign-founder AGs. IHK-appointed Wirtschaftsprüfer reviews the Gründungsbericht. Runs in parallel with notarisation.
Notarisation + Capital Deposit
≥25% of nominal share capital (min. €12,500) deposited before Handelsregister filing (AktG §36a(1)). Notarial Gründungsversammlung recorded — foreign founders use apostilled power of attorney.
Handelsregister + Post-Registration
Notary submits formation deed, Satzung, Gründungsbericht, and Prüfungsbericht to the Amtsgericht. AG acquires legal personality from the moment of entry (AktG §41(1)).
The Three Mandatory Corporate Bodies — No Exceptions
An AG requires three bodies regardless of size or number of shareholders. This is the most significant operational complexity of the AG compared to a GmbH, where a single managing director suffices below 500 employees.
Aufsichtsrat compensation (AktG §113): €5,000–€20,000/year per member — typically €15,000–€60,000/year total. This is the most under-disclosed ongoing cost in AG formation guides.
| Body | German Term | Role | Statutory Basis |
|---|---|---|---|
| Management Board | Vorstand | Runs the company autonomously; min. 1 member | AktG §76 |
| Supervisory Board | Aufsichtsrat | Appoints and dismisses Vorstand; mandatory min. 3 members | AktG §95 |
| General Meeting | Hauptversammlung | Shareholders resolve on profits, Satzung, capital | AktG §118 |
Founding Audit (Gründungsprüfung) — AktG §33
The Gründungsprüfung is triggered by three conditions: (1) any founder also serves on Vorstand or Aufsichtsrat — true for ~80–90% of foreign-founder AGs; (2) any capital contributed in kind; (3) AG acquires assets from a founder within 2 years. The auditor is IHK-appointed — founders cannot select them. Timeline: 2–4 weeks in parallel with notarisation. Cost: €2,000–€5,000.
- →IHK-appointed Wirtschaftsprüfer — cannot be chosen by founders (AktG §33(3))
- →Reviews Gründungsbericht, capital payments, and in-kind contributions
- →Runs in parallel with notarisation — not a sequential delay
- →In-kind contributions (Sachgründung) require additional Sachgründungsbericht and independent valuation
AG Formation Costs vs GmbH — Full Comparison
| Cost Category | GmbH (€25K capital) | AG (€50K capital) |
|---|---|---|
| Notary (formation) | €600–€900 | €1,500–€3,500 |
| Founding audit | None | €2,000–€5,000 |
| Handelsregister fee | €150–€240 | €240–€400 |
| Year-1 Aufsichtsrat fees | None | €15,000–€60,000 |
| Annual mandatory audit | None (small company) | €5,000–€15,000 |
| Annual compliance total | €3,000–€7,000 | €25,000–€80,000+ |
Converting a GmbH to AG — UmwG §§190–213 Formwechsel
A GmbH can be converted to an AG at any time via Formwechsel (change of legal form) under UmwG §§190–213. The conversion preserves legal continuity — same HRB number, all contracts, tax history, and trade relationships transfer automatically. Cost: approximately €4,000–€8,000. Timeline: 2–4 months. Typically tax-neutral under UmwStG §25.
Recommended path: form a GmbH today, convert to AG when the trigger event arrives (IPO track, institutional investor requirement, or exchange listing). Avoid the AG's annual governance cost until it is actually needed.
AG (Aktiengesellschaft) — Key Facts
€0
Minimum share capital
At least 25% (€12,500) paid at founding
0
Governing bodies
Vorstand · Aufsichtsrat · Hauptversammlung
3–6 mo
Formation timeline
Gründungsprüfung adds additional review phase
1+
Founders required
Single founder permitted (Einpersonen-AG)
Common questions.
What is the minimum capital required to form an AG?
€50,000 Grundkapital under AktG §7. At least 25% (€12,500 for a minimum-capital AG) must be paid in and available to the Vorstand before Handelsregister registration (AktG §36a(1)). The remaining 75% can be called up after registration.
When should I choose an AG instead of a GmbH?
Choose an AG when: (1) you plan to list on a German regulated market; (2) your JV counterparty requires AG governance; (3) your industry requires AG form for BaFin licensing; (4) institutional investors require AG governance; or (5) you are preparing for a going-public transaction. For all other scenarios, form a GmbH with a later Formwechsel (UmwG §§190–213).
Is the Aufsichtsrat always mandatory?
Yes. The Aufsichtsrat is mandatory under AktG §95 — minimum 3 members — from the moment of formation, regardless of company size, number of shareholders, or employees. It cannot be waived or deferred.
What is the founding audit (Gründungsprüfung)?
A mandatory independent audit conducted by an IHK-appointed Wirtschaftsprüfer under AktG §33. Triggered when any founder also serves on the Vorstand or Aufsichtsrat (true for ~80–90% of foreign-founder AGs), or when any capital is contributed in kind. Cost: €2,000–€5,000. Timeline: 2–4 weeks in parallel with other formation steps.
Can a non-resident foreigner form an AG?
Yes. The Aktiengesetz imposes no nationality or residency requirement. Foreign founders appear at the Düsseldorf notary via an apostilled power of attorney — identical to the GmbH formation workflow.
What is the difference between Inhaberaktien and Namensaktien?
Inhaberaktien (bearer shares) must be deposited with a central securities depository for private AGs since TraFinG 2017 and are practically obsolete for non-listed companies. Namensaktien (registered shares) are the standard — recorded in the AG's Aktienregister (AktG §67). Vinkulierte Namensaktien add a transfer-restriction consent requirement (AktG §68(2)) — standard for JV and family-office AGs.
What ongoing publication obligations does an AG face?
Every AG must publish its full Jahresabschluss in the Bundesanzeiger within 12 months of fiscal year end (HGB §325) — no size exemption applies. Every AG must also undergo a mandatory annual statutory audit by a Wirtschaftsprüfer (HGB §316). These obligations apply regardless of size.
Can I convert my existing GmbH to an AG?
Yes. A GmbH converts to an AG via Formwechsel under UmwG §§190–213. Legal continuity preserved; all contracts and permits transfer automatically. Cost: €4,000–€8,000. Timeline: 2–4 months. Tax-neutral under UmwStG §25 subject to conditions.
How do AG share transfers differ from GmbH share transfers?
AG share transfers (Namensaktien) do not require notarisation — they transfer by written assignment and Aktienregister update. Vinkulierte Namensaktien require board consent under AktG §68(2). By contrast, every GmbH share transfer requires a notarised act (GmbHG §15(3)). This makes the AG preferable for structures requiring frequent secondary share trading.
What is an Aktionärsvereinbarung and can it override the Satzung?
An Aktionärsvereinbarung (shareholder agreement) is a private contract between AG shareholders and is legally valid. However, it cannot override mandatory provisions of the Aktiengesetz or the Satzung — it binds only the parties contractually. For tight governance controls with enforceable drag-along, tag-along, or pre-emption rights, a GmbH structure is often preferable, as shareholder agreements are more flexibly incorporated into GmbH articles.
Your AG, structured for growth.
Talk to a German Rechtsanwalt about AG formation, governance structure, and capital requirements.
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