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German Holding Companies
Updated on Friday 17th June 2022 Rate this article
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based on 3 reviews
Forming a holding company in Germany
A holding company in Germany is used by foreign investors to own shares in other companies. Although it does not offer any specialized services it acts as an investment vehicle and provides a way to manage income, gather shareholders with the same interest and finance other companies.
Businessmen interested in starting a holding company in Germany, must know that this type of company is an efficient structure that ideally operates with minimal costs. These types of companies can benefit from certain tax advantages and this is why investors choose Germany to base their holding company.
Our company registration representatives in Germany can help you set up this type of structure and manage your assets accordingly. They can also help you in case you are interested in opening a business in Germany under a different type of company, for a example a limited liability company.
Types of companies that can be used as holdings
Setting up a company in Germany implies, among other requirements, choosing a legal structure for your future business. Many investors in Germany choose to open a private limited company because the shareholders enjoy limited liability for the debts of the company and their personal assets are protected.
If you want to open a company in Germany, one of our experts can give you detailed information about the particularities of the private limited company and other business forms that can be used to incorporate a holding company. If you are interested in opening a company in another jurisdiction, like South Africa, we recommend our partners - South-African.Lawyer.
Taxation of German holding companies
One of the most important characteristics of a good taxation regime for holding companies is the avoidance of double taxation. This is possible in Germany through the large number of double tax treaties that exist between this country and other ones around the world.
Because it is a member of the European Union, Germany enforces the provisions of the Parent-Subsidiary directive, a law that influences holding companies. If a German company owns at least 10% of the shares of an EU subsidiary for at least one year, then any dividends from that subsidiary to the German holding company are exempt from the withholding tax.
German holding companies can be exempt from corporate income tax on the profitable sale of shares in a foreign subsidiary if they meet the criteria concerning the percentage of shares owned in that subsidiary and if the subsidiary is located in a country with which Germany has signed a double tax treaty.
Germany offers a competitive holding company regime. If you are interested in starting a business in Germany and knowing more about the tax rates and possible tax benefits you can contact our company registration consultants in Germany.
Meet us in Germany
Marco Rössel is a Partner at Liesegang & Partner and an experienced Attorney at Law. He is specialized in commercial and corporate law and can help you open your company in Germany as fast as possible.
Call us now at +49 69 71 67 2 67 0 to set up an appointment with our company formation experts in Germany. Alternatively you can incorporate your company without traveling to Germany.
As our client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Germany.
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Bridgewest recommends Liesegang & Partner
to all clients who need company formation services in Germany.
to all clients who need company formation services in Germany.
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