Establish a company in Germany
Finally being your own boss. If you want to make this dream come true and work independently, you can do it in various ways. They all have one thing in common: Establishing a company in Germany requires thorough preparatory work.
Establishing a company must be carefully considered
- Your first thought of starting your own business must be followed by the second consideration: In which legal form would you like to set up your company?
- What start-up capital do you have available for your business idea, and what financial support do you still need to set up your company?
- Prepare a business plan and seek funding. In Germany you can get this through the European Recovery Plan.
Sole proprietorship and GmbH are common in Germany
- Start-ups in Germany usually start out as sole proprietorships.
- The sole proprietorship is the simplest type of self-employed activity. Most sales agents work on this basis. Your name is also part of the name of the company. You do not have to take into account whether the name has already been registered as a company name in Germany.
- Borrowing is easier when setting up a company, as the entrepreneur is liable with all of his assets.
- If you want to set up a GmbH, calculate the ancillary costs in addition to the start-up capital.
- A company formation in the form of a Ltd. as the English counterpart to the German GmbH is an alternative, but requires legal advice and is still met with skepticism in Germany.
- The name of a GmbH or Ltd., unless it is the name of the entrepreneur, may not already be used by another company. A notary is responsible for this verification.
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In Germany, company formation also means bureaucracy
- As a company owner, you need a separate business account for your company.
- You may need to be entered in the commercial register of the responsible local court.
- You can apply for a trade license at your local regulatory office. For certain professions, an official permit is a prerequisite for the issue.
- When setting up the company, notify the tax office of your self-employed activity so that you are recorded under sales tax law.
- Membership in the responsible Chamber of Industry and Commerce is not voluntary in Germany, but has to be done.
- If you employ employees, inform the responsible trade association.
- In order to be able to weigh up all the advantages and disadvantages when choosing the legal form of your company and not omit the Committing authorities, the advice of a lawyer, tax advisor or professional coach is absolute recommendable. Setting up a company in Germany is not easy, but thorough preparation helps ensure that the dream of your own company does not turn into a nightmare.
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