Germany welcomes multinational companies that want to establish a subsidiary or start a new company. Because of the free market policy, both local and foreign corporations are not subjected to regulations, one thing that can make operating a business in Germany easier and more profitable. Forming a company can be simple; however, every detail must be accurate to ensure approval. Investors who venture into company formation germany will need professional and expert assistance. You can check the Company Act for the guidelines on how to start a business in Germany.
- Authenticating company name
The first thing to do when planning to open an enterprise in Germany is to choose an original business name. There is a formula for the naming of the business. The first part could be the goals of the company or the stockholders’ names and the second part must always be German phrase “mit beschränkter Haftung” for a limited liability company or “Aktiengesellschaft or AG” for a joint stock company. The Chamber of Commerce will check the authenticity of the name.
- Articles of Incorporation
The next thing to prepare is the articles of incorporation. The document includes the company name, the street address, and the agent that assists in the processing as well as the kind and amount of shares to be issued. The articles of incorporation must be notarized in Germany.
- Other requirements
Other items to submit are the sample signatures, copies of the passports, and a completed form from the office that is in charge of company registration. The firm must have an official office, an account in a local bank, and a designated accountant. The application for registration should include the organizational structure of the Management Board and a sworn statement regarding the required capital share. After the electronic submission of all the documents, the Commercial Register will finalize the registration process.
- Trading license
After the registration, you must visit the Office of Business and Standards, and apply for a trading license. You must register to the Office of Statistics where you will answer a questionnaire about the company. The next step is to register at, the Chamber of Commerce and the Office of Labour, which will provide an 8-digit number for the Social Security Agency. Then, the business entity must apply at the Office of Health Insurance. The Office of Taxation is notified of the formation of the company so that it will be registered for corporate and value-added tax.
After completing the company registration germany process, the newly formed business can now start operation.