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The Company Act in Germany

Updated on Monday 03rd April 2017

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Business laws applicable in Germany

The Company Act in Germany is based on several texts of the law regarding each and every type of business structure that can be established in Germany. However, the Commercial Code is a general legislation that must be observed, too. In addition to that, Germany also falls under the European directives as a member state of the European Union.

Limited liability companies in Germany are regulated by a company act called the Act Concerning Companies with Limited Liability or Gesetzbetreffend die GesellschaftenmitbeschränkterHaftung, in short GmbHG. Joint stock companies fall under the rules of the Stock Corporation Act or Aktiengesetz, also known as AktG, while partnerships must submit to the rules of the Civil Code and Commercial Code.

When starting a company in Germany, you will have to choose a legal structure for your future business and our local agents can help you make the right decision.

Employment legislation in Germany

Together with the Company Act in Germany, the labor legislation contributes to the well-being of the commercial businesses.As far as the employment contracts are regarded, they are formed based on the relationship between the employer and the employee, with the possibility to negotiate the terms of the company so that the text is convenient to both parties. Employment contracts are regulated by the Federal Labor Court.

When it comes to the rights and obligations of the employer and the employee in Germany, one can find information regarding all aspects of the employment in laws such as

  • the German Civil Code,
  • the Working-Time Act,
  • the Act Concerning Paid Vacations,
  • the Act Against Unfair Dismissal,
  • the Act Concerning Trainees,
  • the Act Concerning Disabled Employees, Maternity Leaves and Remuneration During Sickness.

The employment law is a good support for the Company Act in Germany, providing a legal environment for business and ensuring all parties of a good collaboration, as well as a good company management and organization.

Setting up a company in Germany is not an easy task, so please feel free to contact our company formation specialists in Germany for more information in regards to the Company Act in this country, as well as step-by-step assistance for the launch of your local start-up. We are specialized in providing qualified legal consultancy to foreign investors interested in starting a company in Germany.

 

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