Germany Is One Of The Most Advanced Economies In The World.

1427 WordsFeb 11, 20176 Pages
Germany is one of the most advanced economies in the world. It is a leading exporter of a wide range of products: • Machinery • Chemicals • Consumer electronics • Foodstuffs It is also a stew of ethnicity and the epitome of a heterogeneous nation. It is thus a great place for an ambitious entrepreneur to establish their businesses. Below, we are going to delve into the processes of establishing various forms of companies in Germany, together with the costs that go along with them. The costs of opening a company in Germany consist of obligatory and consultancy costs. Obligatory costs include: • Notary services. • Registration in the commercial register. • Registration in the chamber of commerce. • Registration in the department on…show more content…
Limited Liability Company (GmbH) • The GmbH is a legal entity in its own right. • Minimum capital that is required is 25,000 euros. • Each partner is required to contribute capital of at least 1 euro. • Shares of a GmbH cannot be listed on the stock exchange. Entrepreneurial Company at Limited Liability (UG) • Suitable for startup businesses. • Minimum capital required is 1 euro. • Incorporation of a UG is easier and cheaper than the incorporation of a GmbH. Joint-Stock Company (AG) • A joint-stock company is a legal unit in its own right. • Shares of an AG can be listed on the stock exchange. • Strict capital protection rules apply and shareholders have less control over management. Limited Liability Company (GmbH) This is the most common legal form of organizations in Germany and is the simplest form of a capital company that can be set up for any permissible purpose. At least one shareholder is required to set up a GmbH. The nationality and the residence of the shareholders and the managing directors are irrelevant. However, the company has to have a German address and a local representative. In general, only the company itself, and not the individual shareholders is liable. The GmbH requires a minimum share capital of 25,000 euros, which can be funded with cash or in kind. The Process of formation of a GmbH: Drafting of Articles of Association The articles of association influence the identity and structure of an organization. The

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