Your business in Germany 2024: how to register, available niches, cost

The main costs of opening a business in Germany include the authorized or share capital, which must be immediately transferred to the account. For example, to register a GmbH, you need at least 25,000 EUR, while for an AG, it’s 50,000 EUR. Additionally, there are one-time registration fees, costs for a legal address, office work, accounting services, and nominal services.

Yes, both residents and non-residents of Germany, as well as individuals and legal entities, can be founders of a company in Germany. Additionally, the director of a company in Germany may also be a non-resident, and there’s no requirement to have a German resident in the company structure.

Registering a company in Germany offers numerous advantages, including access to the largest economy in the EU, first-class infrastructure, wide investment incentives, political and financial stability, reliable legal system, high-quality products, and a high standard of living.

Businesses in Germany are subject to corporate tax, solidarity tax, local municipal tax, VAT, and capital gains fees. Corporate tax is 30%, and VAT is 19%. Tax rates may vary depending on the ownership structure and business activities.

Key business niches in Germany include sales of environmentally friendly products, beauty services, real estate rental, IT, engineering, healthcare, and pharmaceuticals. Freelance or self-employed entrepreneurs can explore options like fast food, food delivery, laundry services, pet care, and construction.

A mini-GmbH, or UG (Unternehmergesellschaft), is a legal form similar to a GmbH but with a lower authorized capital requirement. While a GmbH requires 25,000 EUR, a UG can be registered with just 1 EUR. However, UG must annually contribute 25% of profits until the capital reaches 25,000 EUR.

One disadvantage of a mini-GmbH is the requirement to indicate “Unternehmergesellschaft” or “UG” in the company name, which may affect the company’s credibility. Additionally, the need to annually contribute profits to increase the capital reserve can be seen as a drawback.

Registration of a company in Germany can be carried out remotely through a proxy. The director of the registered company will need to visit Berlin for one day to open a corporate bank account, but most other procedures can be completed remotely.

To convert a UG into a full GmbH, the company must accumulate authorized capital of at least 25,000 EUR. This can be achieved by annually contributing 25% of profits until the capital reaches the required amount. Once the capital is sufficient, the company can be re-registered as a GmbH.

No, there are no restrictions on foreign ownership of companies in Germany. After company registration, it’s possible to have 100% foreign ownership. Additionally, Germany’s participation in the Eurozone allows for the free movement of capital in any currency, enabling residents and non-residents to open accounts in German banks in any currency.