Establishing a company in Germany offers you many advantages. Not only does the country provide an excellent infrastructure for businesses, but it is also located in the centre of Europe. It has established itself as an internationally prestigious and economically stable country.
More and more UK companies are gaining international ambitions, and many are choosing Germany to establish businesses post-Brexit because of the many advantages Germany offers. This decision is ideal for many reasons. However, forming a company there can take a long time.
This article will explain the key ways to establish a business in Germany faster.
Establishing a Company in Germany: Key Issues to Know
Before we explain how to speed up the company formation process in Germany, we have explored the key issues related to the business formation process. Consider the company formation phases listed below to understand which steps are required.
Choose between GmbH and UG forms
If you are keen to set up a business in Germany, you may choose between GmbH and UG legal forms, which are similar to Limited or Ltd. companies. GmbH and UG forms do not differ in a legal or tax-related sense, but UG businesses require less equity to set one up and are slightly newer legal forms.
UG legal business options may only need 1 EUR in capital to establish, but it’s recommended that you establish 500 EUR as a minimum amount. GmbH legal business forms need 25,000 EUR in capital to set up.
Register the business and pay in share capital
Since a central system doesn’t exist, you must set up an appointment with a notary public and open a business bank account to pay in your share capital.
The process of registering your company in the German commercial register comes next, which can take between 2 and 6 weeks. Part of the process involves waiting for officials to create an entry transparency register for you.
Apply for tax and EORI numbers
After these steps, you can separately apply for your tax and EORI numbers and register your company with the trade office in the local area. These steps can take a long time, depending on the clerks or authorities who handle the company formation process for you, which is why we recommend hiring an expert agency to establish your business.
Avoiding Bureaucratic Challenges Related to Business Formation: Expert Advice
We spoke with Kristof Tomasz, company formation expert and consulting company owner, to get the best expert advice on establishing a company in Germany faster and avoid the bureaucratic hurdles linked to company formation.
1. Using a shelf company as a new incorporation alternative
A ready-made or shelf company in Germany is ideal if you want to speed up the business formation process. Shelf companies are already formed but haven’t ever traded and that they cut waiting times in half when establishing a business for three reasons:
- A shelf company’s capital stock is already completely paid
- Shelf companies have an already established business account
- Shelf companies are already registered with the German commercial register
Choosing a shelf company option may be slightly more expensive than other choices, such as a new UG company (for which you need only 1 EUR of capital) or a new GmbH option, but you can form your company faster using this option.
2. Sign documents in Germany
Even if you live abroad, you can establish a company in Germany and sign the required documents. New business owners may consider signing documents such as the register applications, shareholders’ resolutions and power of representation in the UK when establishing a company in Germany.
However, Kristof Tomasz advises that you may save 1.5 weeks on average if you sign the shareholders’ resolutions, register applications and power of representation documents in Germany.
Since Germany is in the heart of Europe and has many accessible flight connections, it’s convenient and easy to get to the country to sign the documents there.
3. Request goodwill
One final piece of advice from Kristof Tomasz is that requesting goodwill can make the company registration process in Germany faster. Requesting goodwill simply means making a phone call to the tax office to ask for your business registration process to have priority status. Being polite and explaining why the case is urgent is important.
Although asking for goodwill doesn’t guarantee that officials will prioritise your case, it’s worth presenting it politely.
Establishing Your Company in Germany: Points to Remember
Establishing a company in Germany may seem challenging, and you may not want to wait for months to complete the process, but there are ways you can save time. Remember to use a shelf company instead of a new establishment, sign documents in Germany and request goodwill when setting up your business.
There is no need to wait for weeks and weeks to set up or start your business. Follow these expert tips to set up a business in next to no time.