Home›Guides›German Company Organisation: GmbH Structure, Officers, and Corporate Governance
German Company Organisation: GmbH Structure, Officers, and Corporate Governance
A practical guide to the internal structure of a German GmbH — from the Geschäftsführer's legal powers to shareholder resolutions, the Gesellschafterliste, and Prokura authority under HGB §49.
The GmbH as a Legal Entity
The GmbH (Gesellschaft mit beschränkter Haftung) is Germany's most widely used corporate form, governed by the GmbHG (GmbH-Gesetz). It is a legal entity separate from its shareholders, created by notarisation of a Gesellschaftsvertrag (articles of association) and entry in the Handelsregister. The minimum share capital is €25,000, of which at least €12,500 must be paid in at the time of registration. Approximately 1.5 million GmbHs are registered in Germany, accounting for the overwhelming majority of German SMEs and most wholly owned subsidiaries of foreign corporations.
- GmbH governed by GmbHG (Gesetz betreffend die Gesellschaften mit beschränkter Haftung)
- Separate legal personality from shareholders — liability limited to share capital
- Minimum share capital: €25,000 (GmbHG §5); €12,500 minimum paid in on registration
- Formation: notarised Gesellschaftsvertrag + Handelsregister entry
- Approx. 1.5 million GmbHs registered in Germany
Geschäftsführer — Managing Director
The Geschäftsführer is the mandatory executive officer under §6 GmbHG — at least one must be appointed at formation and must be a natural person with full legal capacity. A criminal conviction in defined categories (e.g. Insolvenzverschleppung, fraud) bars appointment under §6(2) GmbHG. EU/EEA residency is not legally required since the ECJ Überseering ruling (2002), but without German residence, practical complications arise with the Finanzamt and bank account opening.
- §6 GmbHG: minimum 1 Geschäftsführer — must be natural person with legal capacity
- EU/EEA residency: not legally required since ECJ Überseering 2002 and German reform
- §6(2) GmbHG: conviction for Insolvenzverschleppung or fraud bars appointment
- Multiple Geschäftsführer: can be granted joint or sole signing authority
- Geschäftsführer need not be a shareholder — external management permitted
Gesellschafterversammlung — Shareholder Meeting
The Gesellschafterversammlung is the supreme corporate body of the GmbH under §48 GmbHG, with authority over all matters not delegated to the Geschäftsführer. Ordinary resolutions require a simple majority (§47 GmbHG); Satzungsänderung, dissolution, and transformation require a 75% qualified majority. Shareholders may pass resolutions by circular letter (Umlaufverfahren) without a physical meeting, provided all shareholders consent — standard in foreign-owned subsidiaries.
- §48 GmbHG: Gesellschafterversammlung is supreme governing body
- §47 GmbHG: simple majority for ordinary resolutions (unless Satzung requires more)
- Qualified 75% majority: Satzungsänderung, Auflösung, Umwandlung
- Umlaufverfahren: circular resolution without meeting — requires all-shareholder consent
- Minutes (Protokoll) must be kept for each Gesellschafterbeschluss
Gesellschaftsvertrag — Articles of Association
The Gesellschaftsvertrag is the GmbH's constitutional document, mandatorily notarised under §§2–3 GmbHG. It must state the company name, registered office (Sitz), business purpose (Unternehmensgegenstand), and Stammkapital structure. Recommended optional provisions include share transfer restrictions (Vinkulierung), tag/drag-along rights, and rules on Geschäftsführer appointment and removal. The Gesellschaftsvertrag is publicly accessible through the Handelsregister; amendments require 75% majority and re-notarisation.
- §§2–3 GmbHG: Gesellschaftsvertrag mandatory and notarised
- Mandatory: company name, Sitz, Unternehmensgegenstand, Stammkapital structure
- Recommended: share transfer restrictions (Vinkulierung), tag/drag-along rights
- Publicly accessible in the Handelsregister — not a confidential document
- Amendments require 75% shareholder majority and re-notarisation
Handelsregistereintrag and Gesellschafterliste
The GmbH is constituted upon entry in the Handelsregister (§8 GmbHG). The Registergericht (commercial court, located within the Amtsgericht) reviews the application for formal compliance and enters the company in Section B of the register. The Gesellschafterliste (shareholder list under §40 GmbHG) must reflect current share ownership and is filed with the Handelsregister. The Geschäftsführer or notary must update the Gesellschafterliste within three months of any share transfer or capital change. A person not listed in the Gesellschafterliste cannot exercise shareholder rights.
- §8 GmbHG: GmbH constituted by Handelsregister entry — legal personality from entry date
- Registergericht reviews application for formal compliance before entry
- §40 GmbHG: Gesellschafterliste must be kept current — update within 3 months of changes
- Non-listed shareholders cannot exercise voting or dividend rights
- Gesellschafterliste publicly accessible — privacy note for individual shareholders
Prokurist — Commercial Signatory Authority
Prokura under HGB §§48–53 is a statutory broad commercial power of attorney granted by the Geschäftsführer and registered in the Handelsregister. A Prokurist can sign contracts, hire staff, open accounts, and run operations — but cannot sell or mortgage real property or amend the Gesellschaftsvertrag. Third parties may rely on registered Prokura regardless of internal restrictions. Prokura is granted as Einzelprokura (sole) or Gesamtprokura (joint — co-signature required).
- HGB §§48–53: Prokura grants broad authority for all ordinary commercial acts
- Prokura must be registered in the Handelsregister
- Limitation: cannot sell/mortgage real property — requires additional authorisation
- Einzelprokura: sole signatory authority; Gesamtprokura: co-signature required
- Third parties may rely on registered Prokura — company bound even if internal rules differ
Aufsichtsrat — Supervisory Board
An Aufsichtsrat (supervisory board) is mandatory for GmbHs with more than 500 employees under the Drittelbeteiligungsgesetz (DrittelbG) and for GmbHs with more than 2,000 employees under the Mitbestimmungsgesetz (MitbestG). DrittelbG requires one-third employee representation; MitbestG requires parity (50/50 shareholder/employee). Most GmbHs — particularly foreign-owned subsidiaries with fewer employees — are not required to have an Aufsichtsrat. A voluntary Aufsichtsrat (fakultativer Aufsichtsrat) can be established in the Gesellschaftsvertrag for governance or investor oversight purposes.
- DrittelbG: Aufsichtsrat mandatory for GmbH with >500 employees — 1/3 employee seats
- MitbestG: parity Aufsichtsrat mandatory for GmbH with >2,000 employees
- Most SME and foreign-subsidiary GmbHs: below threshold — no mandatory Aufsichtsrat
- Voluntary Aufsichtsrat: established in Gesellschaftsvertrag — useful for investor oversight
- Aufsichtsrat members have inspection and information rights over Geschäftsführer
Stammkapital and Capital Maintenance Rules
The GmbH's Stammkapital (registered share capital) is the foundation of creditor protection. §§30–31 GmbHG establish the capital lock principle: the Stammkapital may not be paid out to shareholders if this would reduce the net assets of the GmbH below the registered share capital amount. Payments in violation of §30 GmbHG are unlawful and the Geschäftsführer is personally liable for authorising them. Shareholder loans that are repaid to the shareholder within the vulnerability period of a later insolvency can also be challenged under InsO §135.
- §30 GmbHG: capital lock — assets covering Stammkapital cannot be distributed to shareholders
- §31 GmbHG: unlawful distributions must be repaid to the company
- Geschäftsführer personally liable for authorising distributions that violate §30 GmbHG
- §64 GmbHG (now §15b InsO): Geschäftsführer liable for payments after insolvency maturity
- InsO §135: shareholder loans repaid within 1 year before insolvency can be clawed back
Geschäftsordnung — Internal Rules of Procedure
A Geschäftsordnung (internal rules of procedure for the Geschäftsführer) is not required by law but is best practice for any GmbH with multiple Geschäftsführer or significant operations. The Geschäftsordnung defines internal allocation of responsibilities between Geschäftsführer, specifies which transactions require Gesellschafterversammlung approval (Zustimmungsvorbehalte), sets the authority matrix for financial commitments, and establishes reporting obligations to shareholders. It is adopted by shareholder resolution and can be amended by the Gesellschafterversammlung at any time.
- Geschäftsordnung: not legally required but recommended for multi-Geschäftsführer GmbHs
- Defines internal responsibility allocation between Geschäftsführer
- Zustimmungsvorbehalte: lists transactions requiring prior Gesellschafterversammlung approval
- Authority matrix: financial commitment thresholds below which Geschäftsführer act alone
- Adopted by shareholder resolution — can be amended without notarisation
Shareholder Resolutions — Ordinary and Qualified Majority
Gesellschafterbeschlüsse are the formal mechanism by which GmbH shareholders exercise governance rights. Ordinary resolutions need a simple majority (§47 GmbHG) proportional to Geschäftsanteile. The Gesellschaftsvertrag can raise but not lower statutory quorum requirements. Satzungsänderung, capital increases, and dissolution require a 75% qualified majority. All resolutions must be recorded in a Protokoll; those amending the Gesellschaftsvertrag must be notarised and filed with the Handelsregister.
- §47 GmbHG: simple majority for ordinary resolutions — proportional to Geschäftsanteile
- Satzungsänderung, capital changes, dissolution: 75% qualified majority required
- Gesellschaftsvertrag can increase but not reduce these statutory majorities
- Protokoll (minutes): must be kept for all Gesellschafterbeschlüsse
- Satzungsänderung resolutions: must be notarised and filed with Handelsregister
Frequently Asked Questions
How many Geschäftsführer does a GmbH require?
A GmbH needs at least one Geschäftsführer under §6 GmbHG — a natural person with full legal capacity. There is no maximum. The Gesellschaftsvertrag determines whether multiple Geschäftsführer act individually (Einzelvertretung) or jointly (Gesamtvertretung).
Does a GmbH Geschäftsführer need to be resident in Germany?
EU/EEA residency is not a legal requirement since the ECJ Überseering ruling (2002). In practice, a non-resident Geschäftsführer faces difficulties with bank account opening, Finanzamt contact, and regulatory compliance. Most foreign-owned GmbHs appoint a local resident co-Geschäftsführer.
What is the Gesellschafterliste and when must it be updated?
The Gesellschafterliste (§40 GmbHG) is the official shareholder list filed with the Handelsregister. It must be updated within three months of any ownership change. Unlisted persons cannot exercise voting, information, or dividend rights. The Geschäftsführer or handling notary is responsible for filing.
What is the capital lock rule under §30 GmbHG?
§30 GmbHG prohibits distributing assets to shareholders if doing so would reduce GmbH net assets below the registered Stammkapital. Violations must be repaid under §31 GmbHG. The Geschäftsführer who authorises an unlawful distribution is personally liable to the company.
What majority is required to amend a GmbH's Gesellschaftsvertrag?
Satzungsänderungen require a 75% qualified majority at the Gesellschafterversammlung. The resolution must be notarised and the amended Gesellschaftsvertrag filed with the Handelsregister. The articles can require a higher majority but not a lower one.
What is Prokura and how does it differ from regular power of attorney?
Prokura (HGB §§48–53) is a statutory commercial power of attorney covering all ordinary commercial acts. Third parties may rely on it unconditionally — unlike a standard Vollmacht which can be restricted. Prokura excludes real property disposal and must be registered in the Handelsregister.
When is an Aufsichtsrat mandatory for a German GmbH?
An Aufsichtsrat is mandatory for GmbHs with >500 employees under DrittelbG (1/3 employee seats) and for GmbHs with >2,000 employees under MitbestG (parity). Most foreign-owned GmbHs with fewer than 500 German employees are not required to have one.
Can GmbH shareholders pass resolutions without a physical meeting?
Yes. The Umlaufverfahren allows resolutions by circular letter or email without a physical meeting, provided all shareholders consent. Most Gesellschaftsverträge explicitly permit this. It is standard practice in foreign-owned subsidiaries where shareholders are not based in Germany.
What is a Geschäftsordnung for a GmbH?
A Geschäftsordnung is a rules-of-procedure document adopted by shareholder resolution. It divides responsibilities between Geschäftsführer, sets authority thresholds, and defines Zustimmungsvorbehalte. Not legally required but best practice for any multi-director GmbH.
What is the minimum share capital for a German GmbH?
A GmbH requires €25,000 Stammkapital under §5 GmbHG, with at least €12,500 paid in at Handelsregister registration. The balance may be paid later or contributed as Sacheinlage. The UG (haftungsbeschränkt) allows as little as €1 but must accumulate reserves to €25,000.
What is the Unternehmensgegenstand and why does it matter?
The Unternehmensgegenstand is the business purpose stated in the Gesellschaftsvertrag (§2 GmbHG). The Geschäftsführer acts within it; acts outside may be challenged. The Finanzamt and Handelsregister use it for classification. A broad but specific formulation avoids future amendment costs.
Can a foreign company be a shareholder in a German GmbH?
Yes — no nationality restriction applies. A foreign company or individual may hold 100% of a GmbH's shares. Dividends paid to foreign shareholders may attract German Kapitalertragsteuer (25%) unless a DBA or the EU Parent-Subsidiary Directive provides relief.
What is the Drittelbeteiligungsgesetz?
DrittelbG requires GmbHs with more than 500 employees to create an Aufsichtsrat with one-third employee seats. The threshold applies per legal entity, not group-wide. GmbHs with fewer than 500 employees in Germany are unaffected.
What happens if the Gesellschafterliste is not updated after a share transfer?
If not updated within three months (§40 GmbHG), the new shareholder cannot exercise voting, information, or dividend rights. The Geschäftsführer may face liability. Notary-executed share transfers automatically trigger Gesellschafterliste update by the notary under §40(2) GmbHG.
Can a Geschäftsführer be removed without cause in Germany?
Yes — §38 GmbHG allows the Gesellschafterversammlung to remove a Geschäftsführer at any time without cause, unless the Gesellschaftsvertrag restricts this. Corporate removal is separate from the Anstellungsvertrag, which continues unless independently terminated under its own terms.
Work with the firm that knows Germany.
Licensed lawyers and accountants in Düsseldorf. Free 30-minute consultation, no commitment.
Book Free Consultation