If you are considering entering the European Union through Germany, the UG (haftungsbeschränkt) — commonly referred to as the mini-GmbH — is often presented as the most accessible entry point.

A UG is a German limited-liability company designed for founders who want to begin with low upfront capital. It offers the same legal protection as a GmbH, while allowing incorporation with share capital as low as €1, provided a portion of annual profits is retained until the statutory €25,000 threshold is reached.

This guide walks you through the process of opening a UG company in Germany and helps you assess whether the UG structure aligns with your business objectives, regulatory obligations, and long-term plans.