- Most German companies are limited liability companies (Gesellschaft mit beschränkter Haftung – GmbH). In this corporate form shareholder liability is limited to the subscribed capital; at the company level liability is restricted to its assets. Minimum capital requirement: EUR 25,000. Since November 2008 – through the reform of the German GmbH Act –a new corporate category has been created. It is the so-called limited liability entrepreneurial company (“UG”) or “Mini-GmbH”.
- A German attorney, acting in his/her capacity as a notary (“Notar”) will help with all formalities when establishing a company in Germany.
- Once the articles of association have been signed, the GmbH has full legal capacity and may engage in business transactions.
- A German company must be formally established within the country; it is, however, possible to sign all necessary documents at the German Embassy in your country.
Establishing a company in Rheinland-Pfalz
Visa requirements, employment regulations
Are there any restrictions regarding the choice of president or managing director?
The president or managing director may be a national of any country. If not a citizen of the EU, he/she must have a valid residence and work permit in Germany and may also apply for permanent residence status and a work permit.
What about the rest of the staff?
- Foreign (non-EU) nationals can be delegated to work in Germany for short periods of time. There is no restriction on the number of such delegates if they have valid visas.
- Longer-term work in Germany requires foreign (non-EU) employees to apply for a work permit.
- Approval for necessary residence and work visas is not contingent on the investment amount or the number of jobs created.
- Employees in Germany have to contribute to the German social security system.
Tax and accounting
What about taxes?
- Companies doing business in Germany are subject to trade tax (Gewerbesteuer), levied at the community level, and corporation tax (Körperschaftsteuer).
- All goods and services are subject to a value-added tax (VAT).
Accounting records and financial statements
- Management is responsible for maintaining proper accounting records and preparing financial statements. These documents may be prepared by outside accountants or auditing firms.
Business activity
Can my trademark be registered in Germany and Europe?
Registering trademarks in Germany is easy. Contact the German Patent and Trademark Office (Deutsches Patent- und Markenamt, 
www.dpma.de) in Munich.
What about exports?
After establishing your company in Rheinland-Pfalz, the flow of goods and services within the EU is considered internal European transactions. Trading across borders will be no problem, if EU regulations are observed.
In general, imports and exports can be handled without resort to an import/export company. For special regulations on import / export restrictions, please contact the Chambers of Industry and Commerce.
Is there a demand for my products in Europe?
For a better understanding of current local market conditions, consider involving a reputable consulting or market research institute.
For more details, please contact ISB.
More information
Investmentguide
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