Starting a Business in Germany
Germany is one of the world's leading economies for international companies. Since 1972, InterGest Germany has helped foreign companies set up and run their German subsidiaries, with more than 2,500 clients to date. If you are considering starting a business in Germany, this page walks you through the legal forms, costs, timelines and documents you will need.
What do I need to know about starting a business in Germany?
Short answer: More than 90 % of all companies founded in Germany are set up as a GmbH (German limited liability company), an independent legal entity registered in the commercial register (Handelsregister) and governed by the GmbH Act (GmbHG). Share capital (Stammkapital): at least €25,000, of which €12,500 must be paid in at incorporation. The actual formation costs are around €2,000 for the notary, commercial register and business registration (Gewerbeanmeldung). Registration takes approximately 1 month, with the tax number following another 3 months later. The process comprises five steps, from identification documents through to tax registration.
This page is part of our Starting a Business Abroad hub. For other countries you will find a comparison table and regional overviews there, for example on starting a business in Singapore, starting a business in Malta, starting a business in Greece or starting a business in Hungary. A list of all locations can be found on Starting a Business Abroad, while our services overview sets out the full range of support we provide.
Your contact for starting a business in Germany
Georg Berssenbruegge has been a tax advisor and lawyer since 2003 (First State Examination, Hamburg 2000). His focus areas are company formation, finance, business planning and start-up advice.
He looks after international clients during the formation and day-to-day running of German subsidiaries and guides them through the whole journey, from the notary appointment and commercial register entry to the first VAT return. With over 20 years of practice and fluent English and Spanish, he makes sure coordination between the parent company and German bureaucracy does not become a hurdle. You will find first answers in our FAQs.
What are the advantages of starting a business in Germany?
Germany is the third-largest economy in the world (nominal GDP, 2024) and the largest in the EU. For foreign companies, six concrete advantages matter in day-to-day operations:
- Stable economy: Political continuity and low inflation volatility make multi-year planning realistic.
- Qualified talent: The dual vocational training system and engineering-heavy universities produce staff who can be trained into specific roles.
- Infrastructure and EU access: Direct access to over 440 million EU consumers via road, rail, 15 international airports and two of Europe's top-five container ports (Hamburg, Bremerhaven).
- Funding support: KfW loans, start-up grants and industry-specific programmes lower the capital barrier for market entry.
- Legal certainty: The GmbHG, HGB and Fiscal Code (AO), combined with specialist commercial courts, protect investments and make disputes predictable.
- Quality of life: Healthcare, schools and safety levels help retain international specialists and executives after relocation.
Choice of legal form, financing and tax obligations each need separate attention. InterGest Germany brings tax, legal and accounting advice under one roof, so each building block is handled by a specialist without the founder coordinating multiple firms.
Which legal form suits starting a company in Germany?
If you want to start a company in Germany, the first decision is the legal form. In most cases, InterGest recommends the GmbH (German limited liability company). It is the most common corporate form for foreign companies in Germany, offers limited liability and is recognised by banks and authorities as the standard. A local managing director is not required by law. The difference between a subsidiary and a foreign branch: a GmbH as a subsidiary is an independent legal entity. A branch, by contrast, is merely an extension of the foreign parent. Other legal forms you may come across include the UG (entrepreneurial company with limited liability), the AG (public limited company), the GbR (civil law partnership), the KG (limited partnership) and the OHG (general partnership).
| Legal form | Minimum capital | Typical use | Duration |
|---|---|---|---|
| GmbH | €25,000 (€12,500 paid in) | Subsidiary, SMEs | ~ 1 month |
| UG (entrepreneurial company) | from €1 | Start-ups, small units | ~ 1 month |
| AG (public limited company) | €50,000 | Large structures, capital markets | 2 to 3 months |
| Branch office | no minimum capital | Representation of foreign companies | approx. 2 to 4 weeks |
Advantage: The GmbH gives access to the entire EU market with over 440 million consumers. As an independent legal entity it can enter into contracts, sue and be sued.
Disadvantage: Liquidating a GmbH takes at least a year. On top of that, transparency and disclosure obligations under the HGB add extra work, particularly for smaller units.
Choosing a location and infrastructure in Germany
When starting a business in Germany, location often matters as much as the legal form. Five criteria decide whether a site works:
- Proximity to customers: Short distances to target markets shorten sales cycles and improve response times.
- Suppliers and talent: Regional supply chains and a dense labour market keep start-up and operating costs lower than in most peer economies.
- Transport links: 13,000 km of motorway, 33,000 km of rail, 15 international airports and the Port of Hamburg place most German cities within a day's drive of a major EU market.
- Funding programmes: KfW start-up loans, regional grants and state-level innovation programmes, with higher rates in the eastern states.
- Tax framework: The federal government and the Länder offer relief for SMEs, particularly in structurally weaker regions.
Add to that legal certainty, which foreign investors rank as the single most decisive factor: commercial register entries are public, the commercial courts deliver predictable rulings and administrative procedures follow published timelines.
InterGest Germany advises on location choice from tax, logistical and operational angles, and sets up the structures your market entry needs.
What are the steps involved in a GmbH formation in Germany?
A GmbH formation with InterGest runs in five steps:
- Obtain identification documents. First, identification documents from the home country must be in place. For natural persons, a valid passport or national ID card is sufficient. For companies acting as shareholders, a current commercial register extract for the parent company with an apostille under the Hague Convention is required. InterGest checks all documents up front for completeness.
- Draft articles of association at the notary. The articles of association (shareholder agreement) are drafted by a German notary. They set out the company name, registered office, corporate purpose, share capital and shareholder interests. A bilingual version (e.g. German-English) is possible and recommended for international founders.
- Notary appointment, bank account & capital deposit. The notary appointment requires personal attendance, either by the shareholder or an authorised representative. A German business bank account is then opened and the share capital (min. €12,500) is paid in. At online banks, account opening runs via video identification. The proof of deposit is sent to the notary, who uses it to file the commercial register application.
- Commercial register entry at the local court. Pay the court fee. Warning: fake invoices circulate that look like official post. Pay only the correct recipient. After payment, the local court enters the GmbH in the commercial register. From this moment the company is a legal entity.
- Tax registration with the tax office. InterGest handles the tax registration with the competent tax office. The German tax number takes around 3 months, and longer in some cases for foreign shareholders. For urgent cases, InterGest recommends a shelf company with an existing tax number.
From preparation to commercial register entry takes roughly four weeks. Tax registration takes longer. Anyone who needs to be operational faster should consider a shelf company. More on this on our services page.
From practice: A Japanese automotive supplier wanted to set up a sales office in Hamburg within six weeks. The apostille from Tokyo alone took three weeks. InterGest started the bank account opening in parallel using an interim managing director, so the GmbH was in the commercial register after five weeks and the first customer contract could be signed before the tax number arrived.
What does a GmbH formation cost and how long does it take?
The costs of starting a company in Germany at a glance:
| Item | Duration | Cost |
|---|---|---|
| Notary & commercial register entry | 2 to 4 weeks | approx. €1,000 to €1,500 |
| Business registration (GewO) | 1 day | approx. €20 to €60 |
| Bank account opening | 2 to 6 weeks | €0 to €150 |
| German tax number (tax office) | approx. 3 months | n/a |
| Total (start) | ~ 1 month to commercial register | ~ €2,000 |
Which documents do I need for starting a business in Germany?
For natural persons as shareholders:
- Valid passport or national ID card (certified copy for the notary)
For companies as shareholders (e.g. when setting up a subsidiary):
- Current commercial register extract for the parent company with apostille under the Hague Convention
- Proof of signing authority of the representative
Additional documents required to set up a GmbH:
- Shareholder agreement / articles of association (notarised pursuant to the GmbHG)
- Shareholder list with details of all shareholders
- Appointment of the managing director
- Commercial register filing at the local court
- Proof of share capital deposit (min. €12,500)
- Business registration at the trade office (pursuant to the GewO)
InterGest coordinates the sourcing and review of all documents and ensures the paperwork meets the requirements of the notary and the local court. More information in our FAQs.
What legal aspects apply when starting a business in Germany?
Before starting a business in Germany, several legal questions need answers.
Pick the legal form first. Germany offers the GmbH (limited liability company), the AG (public limited company) and the UG (entrepreneurial company with limited liability), among others. The choice drives shareholder liability, minimum capital and tax treatment.
Next, the legal documents. The shareholder agreement sets out the rights and obligations of each shareholder. The company is then registered in the commercial register and a tax number is applied for.
Commercial law governs most formation steps. Depending on the industry, specific permits and licences may be needed. Employment law adds another layer: contracts, statutory working-time rules, sick leave and dismissal protection.
Professional advice is not optional at this stage. InterGest Germany takes responsibility for compliance from day one, with in-house tax and corporate law expertise covering each step.
The following authorities and legal frameworks are involved in the formation:
| Legal basis / Authority | Function |
|---|---|
| GmbH Act (GmbHG) | Regulates formation, share capital, governance (shareholders, managing director) and dissolution of the GmbH. Basis for every GmbH set up in Germany. |
| German Commercial Code (HGB) | Bookkeeping obligations, annual financial statements, disclosure via the Federal Gazette. Every GmbH is required under the HGB to keep double-entry books. |
| Trade Regulation Act (GewO) | Regulates business registration and the carrying out of trade. Mandatory for every commercial activity in Germany. |
| Local court (commercial register) | Registration of the GmbH. Only with entry does the GmbH become a legal entity. |
| Tax office (Finanzamt) | Issues the German tax number and VAT ID. Tax registration after formation. |
| IHK / employers' liability insurance | Mandatory membership after business registration. IHK contribution depends on turnover and region. |
Which financing options are available for starting a business in Germany?
A business in Germany can be financed from several sources. Most models run through four routes:
- Bank loans: Commercial banks and financial institutions provide start-up loans against a solid business plan. The decisive factor: clean liquidity and capital planning.
- Public funding: The KfW start-up loan, the start-up grant from the Federal Employment Agency and state-level programmes provide grants or low-interest loans, often combinable.
- Business angels and venture capital: Private investors bring equity, industry experience and contacts. A clear, contractually defined allocation of roles is important.
- Equity and crowdfunding: Own funds, shareholder loans or crowd financing complement the classic building blocks and strengthen creditworthiness with banks.
Which mix fits depends on industry, capital need, risk profile and growth pace. In most cases, it is a combination, rarely a single source.
InterGest Germany checks funding eligibility, helps with the business plan and ensures your capital structure holds from day one.
The German tax number takes time
The tax office typically needs approximately 3 months, often longer for foreign shareholders. Without a tax number, invoices showing VAT cannot be issued. The tax office examines economic substance, the identity of the shareholders and the actual business activity.
InterGest offers shelf companies that come with a tax number and VAT ID. Operations can start within a few days.
Bank account opening is tricky
Banks' anti-money-laundering (AML) checks can take weeks and often stumble over missing paperwork, incomplete ownership structures or non-EU managing directors. Some banks decline to open an account if the managing director is not resident in the EU. Without a German business account, share capital cannot be paid in and registration cannot be completed.
Where needed, InterGest provides an interim managing director and works with several banks whose requirements we know.
Anti-money-laundering bureaucracy & compliance
German anti-money-laundering rules (GwG) require, among other things, a dedicated business address, naming of the beneficial owner and a filing with the Transparency Register. This is particularly relevant when setting up a subsidiary, where complex ownership structures must be disclosed. Breaches of the GwG can lead to significant fines.
InterGest provides a registered office address in Hamburg, handles the Transparency Register filing and supports the regulatory requirements.
FREE BOOK BY PETER ANTERIST
The 11 most expensive mistakes when starting a business abroad
Peter Anterist, CEO of InterGest Worldwide GmbH, has distilled the experience of more than 50 years of international company formation practice and projects in 50+ countries into a book: Fail in Foreign Trade. 11 typical pitfalls when starting a business abroad, from bogus self-employment and transfer pricing to compliance, and how international companies avoid them.
Case studies: starting a company in Germany in practice
More than 2,500 international companies have started their business in Germany with InterGest since 1972. Three examples from the Hamburg client portfolio show how different formation situations play out in practice.
1. US software company: SaaS sales GmbH in Hamburg
A US SaaS provider wanted to build a European sales structure in Germany. The GmbH was formed within six weeks. An InterGest interim managing director took on operational leadership until the US CEO had recruited a local country manager. Today, InterGest runs financial accounting, payroll for 12 employees, VAT and monthly IFRS reporting to the headquarters in Austin for this client. All from one source.
2. Japanese automotive supplier: sales office despite an apostille bottleneck
A Japanese Tier-1 supplier wanted to establish a sales office in Hamburg within six weeks. The apostille from Tokyo alone took three weeks. InterGest opened the bank account in parallel with an interim managing director. The GmbH was entered in the commercial register after five weeks, and the first customer contract was signed before the tax number was issued.
3. European manufacturer: converting a branch into a GmbH
A European mid-sized company had been running a dependent branch in Germany for years. To limit liability and gain status as an independent German legal entity, the branch was converted into a GmbH. InterGest coordinated the notary, tax office and tax transition. The result: clear structures for business partners, limited liability and simpler EU market access.
Companies such as Liqui Moly, Mapal, MEVA, Capri-Sun, TÜV Süd, WMF, Dürr, Krombacher, Messe München and Steiff trust InterGest with the formation and administration of their international subsidiaries. A cross-section across industry, consumer goods and services. Details on our client base and more references can be found on the Clients page.
What services does InterGest offer for your market entry?
InterGest Germany runs the full operational stack for international subsidiaries: formation, accounting, payroll, tax, HR and reporting. One team in Hamburg handles everything, so the parent company has a single contact for the German entity rather than juggling a law firm, payroll bureau and tax advisor in parallel.
Over 2,500 clients have gone through this setup since 1972. Detail work (commercial register, trade office, tax office correspondence) is handled in-house, not outsourced.
- Choice of legal form, notary coordination, commercial register entry, trade office, tax office: the complete formation process from a single source.
- Financial accounting, payroll, VAT returns under HGB. All digital, no paper needed.
- Annual financial statements, tax returns, tax compliance. Overseen by tax advisor Georg Berssenbruegge.
- Payroll, social security contributions, employment contracts under German law.
- Interim management, registered office address in Hamburg, post handling, bank account management. Particularly popular with subsidiaries that have no staff on the ground.
- Monthly reporting to the parent company, in IFRS or US-GAAP if needed.
All services are delivered from Hamburg. You have one point of contact for everything.
From practice: A US software company set up its German subsidiary via InterGest and has been running it from the Hamburg location ever since. Accounting, payroll for 12 employees, VAT and monthly IFRS reporting to the headquarters in Austin all run through one team. No juggling between law firm, payroll bureau and tax advisor.
How much share capital is required when starting a business in Germany as a GmbH?
The minimum share capital under section 5 GmbHG is exactly €25,000. At incorporation, at least €12,500 (50 %) must be paid into the business account. The remainder can be topped up later, but you remain personally liable for the outstanding contribution.
Important: the share capital must be paid into a German business account. A foreign account is not sufficient. The money stays as working capital in the company and can be used for ongoing expenses.
The UG (entrepreneurial company with limited liability) is possible from €1 of share capital but has downsides: 25 % of annual profit must flow into a reserve until €25,000 is reached. Banks are more reluctant with UGs and business partners take them less seriously. For international subsidiaries, the classic GmbH is the better choice.
How long does a GmbH formation take in total?
Commercial register entry typically takes around 4 weeks. The tax number follows roughly 3 months later.
The main time sinks: obtaining identification documents takes 1 to 3 weeks depending on country of origin. When companies are shareholders, the apostille takes the longest. Bank account opening takes 2 to 6 weeks, depending on the bank and the origin of the shareholders. The actual entry at the local court is relatively predictable at 2 to 4 weeks.
Tip: start bank account opening and apostille in parallel, not sequentially. This saves 2 to 3 weeks. Anyone who needs to operate immediately can acquire a shelf company with an existing tax number through InterGest. Internationally, Germany sits in the middle of the pack: in Singapore formation takes only a few days, while Greece or Hungary are similar to here.
What are the costs of a GmbH formation?
The actual formation costs are approximately €2,000.
Notary fees (€800 to €1,200) are set by statute in the GNotKG and depend on the share capital. Commercial register costs (€150 to €300) and business registration (€20 to €60) are added on top.
With a model protocol formation (simplified procedure, up to three shareholders) notary costs are at the lower end. Bespoke articles of association with pre-emption or transfer-restriction clauses cost more. For international subsidiaries, a bespoke set of articles is almost always needed, as the model protocol is too restrictive.
Share capital (min. €12,500) is separate and remains as working capital in the company. InterGest offers a flat fee for full support. Details in the free consultation.
Which documents do I need to set up a GmbH in Germany?
Requirements differ depending on whether natural persons or companies act as shareholders. A full list can be found in the Documents section above.
On the apostille: issuance in many countries takes 2 to 4 weeks. States that have not joined the Hague Convention require consular legalisation instead, which takes even longer. This step is often the bottleneck in the formation process, so plan it in early.
A common mistake: documents are obtained in the wrong order. InterGest creates a checklist at the start, tailored to your country of origin and corporate structure.
Does the managing director need to be resident in Germany when starting a business in Germany?
No, there is no legal requirement for a managing director resident in Germany. In practice, however, a local managing director makes the process considerably easier.
The most common reason: many banks require video identification or an in-person meeting with an EU-resident managing director at account opening. KYC/AML checks for non-EU citizens are more involved and regularly lead to rejections. In addition, the tax office often requires short-notice responses during tax registration. A local contact speeds this up noticeably.
Tax relevance: if management sits entirely abroad, the tax office may question the place of management (section 10 Fiscal Code, AO), which can affect tax residence. An interim managing director from InterGest avoids this risk. They take over operational leadership during the formation phase and hand over to the client's nominated person afterwards.
How does accounting work for a German GmbH?
Every GmbH is required under the HGB to keep double-entry books and file annual disclosures with the Federal Gazette. Paper receipts are not required; bookkeeping runs fully digital.
Important for international parents: German bookkeeping follows the HGB, not IFRS. This leads to differences in valuation, provisions and depreciation. For group consolidation, InterGest produces additional monthly reporting in IFRS or US-GAAP if needed, in parallel with the HGB accounts.
Ongoing obligations include monthly or quarterly VAT returns, along with payroll and social security filings when staff are employed. InterGest handles all of this and ensures headquarters always has full oversight. Details under Services.
Why does the German tax number take so long?
Issuance takes around 3 months, and often longer for foreign shareholders. The tax office reviews economic substance, the identity of the shareholders and the actual place of business.
What you can do during the wait: the GmbH is a legal entity from commercial register entry onwards. It can sign contracts, hire employees and rent premises. Only proper invoices showing VAT are not possible without a tax number. Use the waiting time to build up the operational infrastructure.
Acceleration: a shelf company comes with a tax number and VAT ID and can be taken over within a few days. InterGest holds such companies in stock and guides the full handover process.
Is a German bank account mandatory for a GmbH formation?
Yes, a German business account is mandatory. Proof of a deposit of at least €12,500 is a required document for the commercial register filing. Account opening can be done by video identification at many banks.
What to consider when choosing a bank: not every bank accepts non-EU managing directors or complex shareholder structures. Traditional commercial banks check more strictly but often need 4 to 6 weeks. Online banks are faster (1 to 2 weeks) but often have restrictions on cash deposits or credit lines. InterGest advises, based on the individual situation, which bank fits best.
If difficulties arise, InterGest provides an interim managing director. It is one of the most common solutions for international founders.
Which authorities are involved in starting a company in Germany?
A detailed overview of authorities and laws can be found in the table in the Legal framework section above.
What many do not expect: after business registration, mandatory memberships with the IHK (Chamber of Industry and Commerce) and the employers' liability insurance association (statutory accident insurance) follow automatically. Both levy their own contributions. The IHK contribution varies by region and turnover. In the first year, new incorporations are often exempt. The employers' liability insurance becomes relevant as soon as the GmbH employs staff in Germany.
InterGest handles all communication with the authorities and ensures deadlines are met. More about our organisation at About Us.
Why should I start my business in Germany with InterGest?
The difference from a pure law or tax firm: InterGest does not just produce the annual financial statements. Every client has a dedicated contact covering formation, accounting, tax, payroll, HR, interim management and monthly reporting. All from a single source, without handovers between different service providers.
Your contact Georg Berssenbruegge (tax advisor since 2003; languages: German, English, Spanish) is personally responsible. The InterGest network covers offices worldwide, for example in Singapore, Malta and many other countries. See all services at a glance.