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The Share Capital in Germany

Updated on Friday 21st April 2017

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Types of companies with share capital in Germany

The-Share-Capital-in-GermanyMost types of companies foreign investors usually set up in Germany require a share capital. The share capital is the amount of money one or more individuals invest in a company in exchange for shares in the company. In other words, foreign businessmen will invest a certain amount of money that will generate profits they will be entitled to later. The shares issued when the capital is injected in the German company will also grant the shareholders certain powers with respect to the management of the company. Depending on the amount of money an enterpriser wants to invest in a company, the German Commercial Code allows the incorporation of the following types of companies:

  • - limited liability companies (Gesellschaft mit beschränkter  Haftung, GmbH),
  • - joint stock companies (Aktiengesellschaft, AG),
  • - limited partnerships (Kommanditgesellschaft).

Foreign investors who need assistance in setting up a company in Germany can rely on our specialists in company incorporation who will guide them through the business setup procedure.

The share capital for GmbH and AG in Germany

The German limited liability company (GmbH) is the most common business vehicle due to the simple incorporation procedure and the minimum share capital requirements. The start-up share capital for a GmbH is 25,000 euros from which at least 12,500 euros must be deposited upon incorporation. The shareholders may contribute with different amounts; however the minimum share contribution is 1 euro. The German Commercial Law also allows the share capital to be deposited in cash or any other type of movable and immovable property. The German legislation also allows investors to set up mini-GmbH companies which require a minimum share capital of 1 euro.

When it comes to joint stock companies in Germany, the minimum share capital requirements are 50,000 euros.

The share capital of German limited partnerships

Even if not very often employed, the German limited partnership provides a certain amount of flexibility to its owners and limited liability to one of the owners. The minimum share capital required for opening a business in Germany as a limited partnership is 50,000 euros which must be divided into shares. The shares issued upon the incorporation of the German company may be ordinary shares or preference shares.

For detailed information about the share capital, please contact our German consultants in company registration. They will assist you with the entire process of starting a company in Germany, from choosing the right legal structure for your business needs  and helping you comply with all its requirements to registering it with the Trade Register.

 

 

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