Germany offers an incorporation regime under the GmbH Act (GmbH-Gesetz), with companies entered in the Commercial Register (Handelsregister) maintained by the local district courts (Amtsgericht). It is the largest EU market and a strong base for technology and industrial founders, with a well-recognised limited-liability vehicle and a deep talent pool.
Most founders use the Gesellschaft mit beschränkter Haftung ("GmbH", limited liability company) under the GmbH Act. Alternatives include the low-capital Unternehmergesellschaft ("UG", from €1) and the Aktiengesellschaft ("AG", stock corporation, €50,000); a foreign company may register a branch.
A GmbH requires share capital of €25,000 (≈ $29,000), of which at least €12,500 (≈ $14,500) must be paid in before registration, while a UG can start from €1 (≈ $1.16) (retaining 25% of profits until it reaches €25,000). There is no residency requirement for the managing director (Geschäftsführer) or shareholders, and 100% foreign ownership is allowed, but incorporation requires a notarial deed. The notary files the company with the Handelsregister; registration typically takes one to three weeks, with a court registration fee of about €150 (≈ $174) plus separate notary fees.
The local tax office (Finanzamt) levies corporate income tax of 15% plus a 5.5% solidarity surcharge (15.825%) and municipal trade tax (Gewerbesteuer), giving a combined effective rate of roughly 30%; VAT (Umsatzsteuer) is 19%. Dividend withholding is 26.375% (reduced by treaties/EU directives). Medium and large companies must have audited accounts, and beneficial owners must be reported to the Transparency Register (Transparenzregister) within one month.