Company Registration Cost in Germany 2023
Germany is the best place for entrepreneurs to set up a business in Europe. It is centrally located on the European continent, which provides opportunities for business development as well as networking opportunities across the continent.
Germany is easily accessible to all European countries via different transport modes and is considered to be the best choice for international business owners.
If you are planning to set up a company in Germany, you must take into consideration the company registration cost in Germany & additional fees for establishment.
Eventually, the costs of starting a business in Germany can vary depending on the legal form chosen and the business idea. However, prices range from €2,000 to €3,000 on average for registering a company. Though, there are other expenses to be considered for registering a company in Germany.
Through this article, we will be talking about the company registration cost in Germany. So, without any additional worry, let’s hop into it.
Different Elements That Impact Company Registration Cost in Germany
Here’s a look at the different costs involved in setting up a business.
The company registration cost in Germany varies depending on several factors, including the type of company being registered, the number of shareholders, and the services being used.
In general, the cost of registering a company in Germany can vary from a hundred euros to thousand euros.
One of the most general forms of firms to register in Germany is the limited liability company (GmbH). The average cost of registering a GmbH in Germany is around €2,000 to €3,000, which includes the cost of notary fees, commercial register fees, and company formation services.
In addition to these costs, there are also ongoing costs associated with running a company in Germany, including taxes, accounting and legal fees, and insurance. It’s important to consider these costs when planning the budget for a new company.
Company Registration Cost in Germany for Various Business Structures
It is important to know the cost involved in incorporating the different types of business structures before registering a company.
These are some examples of business structures and their associated costs.
Limited Liability Company (GmbH)
One investor can establish a limited liability company with a minimum capital of 25,000 EUR. The stakes of the limited liability corporation cannot be sent to others and can’t be enrolled on the Stock Market.
German Joint Stock Company (AG)
Vast industries will benefit from the German joint stock company. The least capital expected to form a German joint stock company is 50,000 EUR. Members of the company will be held responsible for their actions, and company shares can be freely registered on the Stock Market.
German Limited Partnership
A German limited partnership is a relationship between 2 or additional people who approve to function jointly in a mutually beneficial way. You need at least two partners to be eligible. You can have two types of partners depending on your liability.
The general partner is the one with unlimited liability and can be held liable for all of his/her assets. The limited partner is another type, with a liability that only covers his/her nominal holdings within the partnership company.
Sole Trader
It is easy to form a sole trader in Germany and all that is required is one person to set it up with their assets. The sole trader is still liable for all losses and individual income tax rates apply to the profits of sole traders.
Branch
Branching is a popular way to get into the German market. Foreign investors need to register only with the local commercial register and the local trade office to set up a branch. It is not a legal entity, but its assets and liabilities are owned by the parent company. The entire responsibility for tax and legal matters will remain with the parent company.
Additional Company Registration Cost in Germany
Down below we’ve listed, a few of the additional expenses which will be incurred while registering a company in Germany:
- Trade registrations: These costs vary depending on where you live.
- Entry into the commercial register: Entry is not required for every legal form. The company’s value will determine the amount of the fee.
- Expenses of a virtual office: The monthly cost of a virtual office is roughly 191 euros.
- Accounting expenses: German businesses’ monthly accounting expenses begin at 100 euros.
- Notary and lawyer fees: Although not required in all cases, they are highly recommended for certain legal forms.
- A tax advisor is a good idea, especially if your company is non-german: Most companies pay for annual accounts and regular calculations of input taxes.
- Registering trademarks and patents: It can be costly depending on the type of protection you need.
Conclusion
The company registration cost in Germany can vary depending on the type of company, the number of shareholders, and the services being used. However, the average cost is around €2,000 to €3,000, which includes notary fees, commercial register fees, and company formation services.
Additionally, there are ongoing costs associated with running a company in Germany, including taxes, accounting and legal fees, and insurance.
If you have any questions or have queries about the company registration cost in Germany and would like to understand further, you can call for an appointment with us. Odint Consulting and its experts make sure that no information is overlooked.
FAQ’s
The company registration cost in Germany can vary depending on the type of company, the number of shareholders, and the services being used. However, the average cost is around €2,000 to €3,000, which includes notary fees, commercial register fees, and company formation services.
The following costs need to be taken into account when forming a corporation in Germany:
- Fees for Notaries
- Fees for Trade Registry
- Costs of Tax Registration
- Legal and Consultation Fees
- Registration fees for patents and trademarks
Yes, there will be ongoing expenditures when your business is registered, including taxes, accounting fees, social security contributions, and other running costs.
A joint stock company must have a minimum share capital of 50,000 euros, whereas a limited liability company must have 25,000 euros.
