StartingaBusinessinGermanyasaForeigner—CompleteGuide

Do I need to live in Germany to own a German GmbH?

No. You do not need to be resident in Germany to own shares in or be director of a German GmbH. However, for tax residence and banking purposes, having a German-resident director is practically beneficial. If you are physically managing the company from Germany, you will need a valid residence permit.

What visa do I need to run a business in Germany as a non-EU citizen?

If you will personally manage the company from inside Germany, you need a §21 AufenthG self-employment residence permit. This requires: a viable business plan, proof of sufficient funds, IHK assessment, and demonstrating economic benefit to Germany. If you manage the GmbH remotely from abroad, no German visa is required.

Can I open a German business bank account as a non-resident foreigner?

Yes, but it is harder. Many German banks require: a German address, German tax number (Steuernummer), and sometimes in-person identification. International-friendly options include N26 Business (online), Commerzbank Business (accepts non-residents), and Penta/Qonto (fintech, less stringent). We assist clients in opening accounts before Handelsregister entry.

Do I need a German notary appointment in person?

The GmbH formation deed must be notarised before a German Notar. If you cannot attend in person, you can grant a power of attorney (Vollmacht) to a representative in Germany (notarised in your home country + apostille). We act as authorised representatives for remote formations — you never need to visit Germany.

What taxes does a foreign-owned German GmbH pay?

The same taxes as any German GmbH: Körperschaftsteuer (15%), Gewerbesteuer (~14–17%), and Umsatzsteuer (19%). Foreign ownership does not change the company's German tax obligations. Dividends paid to the foreign shareholder may be subject to German withholding tax (25%), reduced by applicable DTA. We handle the tax compliance.

What is a German registered address (Sitz) and do I need one?

Every German GmbH must have a registered German address (Sitz der Gesellschaft) entered in the Handelsregister. This does not require a physical office — a virtual office address is legally sufficient. The Sitz determines the responsible Amtsgericht, Finanzamt, and Gewerbeamt. Our Dusseldorf virtual office address serves as a fully compliant Sitz for GmbH formations.

Can I use a UG instead of a GmbH as a foreign founder?

Yes — a UG (haftungsbeschrankt) is available to foreign founders on the same terms as German founders. The UG requires only 1 EUR minimum share capital, making it attractive for low-capital startups. However, the UG must retain 25% of annual net profit as reserves until reaching EUR 25,000 capital (Section 5a GmbHG), at which point it can convert to GmbH. Many international investors prefer GmbH from the start for credibility with German clients.

Do I need to speak German to manage a German GmbH?

Not legally — the Handelsregister and official documents are in German, but there is no legal requirement for directors or shareholders to speak German. In practice, all Finanzamt, Gewerbeamt, and court correspondence is in German. We provide bilingual service and handle all German authority correspondence on behalf of non-German-speaking international clients.

What is the Transparenzregister and does my foreign-owned GmbH need to register?

Yes — all German GmbHs must register their ultimate beneficial owners (UBOs) in the Transparenzregister under GwG Section 20. This applies regardless of whether owners are German or foreign. Registration must occur within one month of company formation and must include: full name, date of birth, nationality, residence, and nature of ownership. Failure to register is an Ordnungswidrigkeit with fines up to EUR 1 million.

How does Germany treat non-resident foreign directors for tax purposes?

A non-resident foreign director who works from abroad does not trigger German personal tax residence merely by holding the director title. However, if the director physically manages the company from Germany — making key decisions on German soil — this can create German personal tax residence (Section 1 EStG) and a Betriebsstatte (permanent establishment). Structuring director activities carefully is essential to avoid unintended German tax obligations.