Set up a UG Company in Germany

Looking to tap into Europe’s thriving business landscape? Set up a UG company in Germany—your ideal gateway to the EU market. Known as the “mini-GmbH,” a UG (haftungsbeschränkt) is a flexible, low-cost legal structure that offers limited liability protection, credibility, and growth potential without the high capital demands of a full GmbH. Whether you’re an entrepreneur from India, the UAE, the U.S., or anywhere in the world, Germany welcomes foreign founders through a business-friendly and legally solid system. 

In this comprehensive guide, you’ll discover why a UG company is the smart choice for international startups, what’s required to launch one, how to register a business in Germany, and how OnDemand International can streamline the entire process for you—from document prep to tax registration and bank account opening. 

Why Set Up a UG Company in Germany?

Setting up a UG company in Germany offers you the perks of a limited liability structure without requiring a large upfront capital investment.

Listed below are certain reasons to set up a UG company in Germany:

1. Low Capital Requirement: You can start a UG with as little as €1 in share capital, unlike a GmbH which requires €25,000.
2. Limited Liability Protection: Your personal assets are protected—only your share capital is at risk.
3. EU Market Access: Once established in Germany, your UG gives you easier access to trade, hire, and operate across the EU.
4. Ideal for Foreign Entrepreneurs: The UG is tailored for startups and non-residents. It’s a stepping stone to scale into a full GmbH over time.
5. Tax and Legal Credibility: A UG is a registered legal entity and is treated similarly to a GmbH for tax and commercial law purposes.

Requirements to Set Up a UG Company in Germany

Setting up a UG (Unternehmergesellschaft) in Germany is relatively simple—but there are some basic eligibility and compliance requirements that must be met such as:

• Any foreign individual or company (EU or non-EU)
• Must be atleast 18 years old
• At least one director (can be the shareholder)
• A registered office (legal address) in Germany
• A minimum share capital of €1

How to Open a UG Company in Germany?

Whether you’re operating from India, the US, UAE, or elsewhere—here’s how you can set up your UG in Germany:

1. Choose a Unique Company Name

Make sure your business name is unique and includes “UG (haftungsbeschränkt).” It must be approved by the German Chamber of Commerce (IHK).

2. Prepare the Articles of Association (Gesellschaftsvertrag)

You’ll need to draft your company’s Articles of Association. A model version is accepted if you have a single shareholder.

3. Open a German Business Bank Account

The UG capital must be deposited into a dedicated business account. This is a prerequisite for company registration.

If you’re a non-EU resident, remote bank account opening may be tricky—this is where  OnDemand International can assist you. We can assist you in opening an online business bank account in Revolut, Payoneer or Interpolitan.

4. Notarize the Incorporation Documents

A German notary public must verify and notarize your Articles of Association, shareholder list, and managing director appointment.

5. Register with the Commercial Register (Handelsregister)

Once notarized, the documents are submitted electronically. After approval, your UG becomes legally active.

6. Get a Tax Number & VAT ID

Register with the tax office (Finanzamt) to receive your Steuernummer and apply for a VAT ID (USt-IdNr) if needed.

7. Register for Trade License (Gewerbeanmeldung)

Depending on your business activity, you’ll need to register with the local Trade Office.

Documents Required to Set Up a UG Company in Germany

To initiate your UG registration, you’ll need the following documents. Make sure all non-German documents are translated and apostilled, if applicable.

• Passport Copies of Shareholders/Directors
• Residential Proof (utility bill or similar)
• Company Name Confirmation
• Articles of Association (Gesellschaftsvertrag)
• Shareholder List
• Managing Director’s Appointment Letter
• Proof of share capital deposit
• German Address Proof (Virtual or physical office)
• Power of Attorney (optional)

Note: OnDemand International can help you prepare, translate, notarize, and submit these documents as part of our complete UG company formation package.

Can a Non-Resident Set Up a UG in Germany?

Yes, non-residents can absolutely register a UG company in Germany—even if they don’t hold EU citizenship. However, they must have a local registered office in Germany and may need to visit in person for notary appointments and bank account opening (depending on the bank).

With proper legal and incorporation support, the process is smooth and straightforward.

Why OnDemand International is Your Best Partner for UG Company Formation?

At OnDemand International, we’ve helped 1000+ entrepreneurs like you start and scale their businesses in Europe.

We offer:

• End-to-end UG Company Formation Support
• Virtual Office address in Germany
• Help with bank account opening
• Local notary and translation assistance
• Tax registration and VAT filing
• Guidance on the EU Blue Card

Conclusion

If you’re serious about expanding into Europe, setting up a UG company in Germany is one of the smartest and most cost-effective ways to start. With just €1 in capital, you get limited liability, access to the EU market, and the trust of doing business under German law. It’s perfect for startups, freelancers, consultants, and digital entrepreneurs who want to grow without taking big risks upfront.

Of course, the process can feel overwhelming, especially if you’re handling it from another country. That’s where OnDemand International can help. From drafting the right documents to registering your company, getting your tax ID, or even setting up a virtual office, we make it easy and hassle-free.

Talk to us today and start your UG setup in Germany.