A GmbH in Germany actually comes from a GesellschaftmitbeschränkterHaftung, which means a limited liability company. This is the most popular structure chosen by foreign investors who come to Germany. Just like all other German companies, it must be registered with the Trade Register before starting its activity.
In order to start a company in Germany as a Gmbh, at least 25,000 EUR must be provided. The contribution can be made in cash or in kind. The capital is divided into shares, which are not transferrable and cannot be listed at the stock exchange. In addition, each member must provide at least 100 EUR in order to receive a share with nominal value.
At least one shareholder must set up a GmbH in Germany. Shareholders are liable for the company’s debts and obligations only up to the amount of contribution made to the company's capital.
The management of the Limited Liability Company or GmbH in Germany consists of the managing directors. They can also represent the company in all matters concerning the business. Managing directors are appointed by the shareholders. A shareholder can also be a managing director.
Financial records must be kept by all limited liability companies or GmbH in Germany. All commercial transactions must be noted and kept. A GmbH must also submit annual financial statements, a balance sheet and an income statement.
It is mandatory that the company registered in Germany has a name that contains its business form. In this case, all companies must include the abbreviation “GmbH”. The name of the limited liability company in Germany can reveal details on the shareholders or the activity of the company or it can be invented, as long as it is not used by another company.
If you are interested in setting up acompany in Germany as a GmbH, do not hesitate to contact our experts in company formation in Germany for a personalized offer. Furthermore, we invite you to find out what is the cost of opening and operating a business in Germany by trying our free calculator.