Formation of a German company with support by Liesegang & Rössel GmbH & Co. KG
It’s worth your while to consider forming a German company to reduce your time to market entry. Until issuance of the tax number and VAT ID for your newly formed German company, it should only be a matter of a couple of weeks (3 up to 6 weeks, at the most, on average, it currently takes four weeks. Processing times vary by tax office.) The time for registering as a foreign business can be up to six months.
We can help with tax advisory, tax registration, accounting, annual closing, and tax compliance for a new German entity, for example a Limited Liability Company.
Free initial consultation (Microsoft Teams)
We can schedule a complimentary (free) video conference for an initial tax consultation to discuss this opportunity further before you engage us:
※ Book an online appointment for a Microsoft Teams conference
Benefits of separate entity approach for your Company Formation in Germany
The formation of a separate local entity has many benefits:
- Shielding effect for profits and losses generated in Germany
- The new German company is eligible for benefits according to tax treaties.
- If you already have a company abroad, you can make a German company a wholly owned subsidiary of your parent company.
- Net dividends can be disbursed from Germany to most non-EU countries at a benefitial tax rate from only 5 % according to Art. 10 of the Master tax treaty. Typically, this applies for as long as the parent company directly holds from 10 % of the German company’s shares/stakes.
- If you already have an EU company, you can make a German company a wholly owned subsidiary of your parent company.
Net dividends can be disbursed from Germany to the EU parent company tax free, thanks to the EU regulation 2011/96/EU (mother-daughter directive).
- Net dividends can be disbursed from Germany to most non-EU countries at a benefitial tax rate from only 5 % according to Art. 10 of the Master tax treaty. Typically, this applies for as long as the parent company directly holds from 10 % of the German company’s shares/stakes.
- At your parent company, you can treat the setup cost towards forming your new German company as an investment
(legal fees from Liesegang & Rössel GmbH & Co. KG law firm, notary public fees).
Our fees from the tax registration and ongoing monthly service to annual closing & tax return preparation are charged after the German company’s formation and can be therefore be treated as ordinary business expenses. - Tax-effective lease, loan and employment agreements are possible, even with the shareholders
- Hire and fire employees without incurring severance pay as long as you keep fewer than 10 full-time employees on your payroll.
Note: Transfer prices between related companies must be agreed at arm’s length.
Next step: form a German company
How to make it in Germany – company formation
https://youtu.be/RpxxV2OAUzE
Company Formation Germany
with Liesegang & Rössel GmbH & Co. KG
To form a new German company, please check the below information from our cooperation partner, Liesegang & Rössel GmbH & Co. KG law firm, the formation lawyers:
Limited Liability Company
a) GmbH
The basic fee of Liesegang & Rössel GmbH & Co. KG law firm for the formation of a GmbH is 2,050 EUR.
However, the final amount depends on your requirements. The following additional services might be appropriate:
- at least one shareholder has its registered seat not in Germany but abroad + EUR 750 net (not necessary if all shareholders are individuals)
- representation at the notarization +EUR 550 net
- support with a bank account +EUR 500 (Please mention that only the bank decides about the account opening, hence we couldn’t guarantee a success. Furthermore the banks usually request the involved persons to appear in person in order to verify their identity and they could charge own account opening fees.),
- bilingual formation documents in German/ English +EUR 500 net
- registering with the Transparency Register + EUR 250 net
- business registration at the trade office + EUR 300 net
The fees for notarization and Commercial Register, approx. another EUR 1.000 in total, are not included; they could be paid through the new GmbH after the notarization.
Please see the website of Liesegang & Rössel GmbH & Co. KG law firm to get an overview about all the services and fees in this regard:
https://shop.liesegang-partner.com/incorporation-german-gmbh.html
b) UG (haftungsbeschränkt)
The basic fee for the formation of an UG (haftungsbeschränkt) is 800 EUR net.
However, the final amount depends on your requirements. The following additional services might be appropriate:
- -at least one shareholder has its registered seat not in Germany but abroad. + EUR 480 net (not necessary if all shareholders are individuals)
- representation at the notarization +EUR 550 net
- bilingual formation documents in German/ English +EUR 300
- support with a bank account +EUR 500 (Please mention that only the bank decides about the account opening, hence we couldn’t guarantee a success. Furthermore the banks usually request the involved persons to appear in person in order to verify their identity and they could charge own account opening fees.)
- registering with the Transparency Register + EUR 250 net
- business registration at the trade office + EUR 300 net
Please see the website of Liesegang & Rössel GmbH & Co. KG law firm to get an overview about all the services and fees in this regard:
https://shop.liesegang-partner.com/company-formation-ug-germany.html
Your German company will nee a registered business address that can be used as its seat. If you don’t have a German address which you can use, you’ll have to rent at least a so-called shared office which costs approx. 180- 250 EUR net monthly + deposit. Liesegang & Partner will gladly recommend you an appropriate provider.
Engage us for Accounting, VAT representation and tax preparation & filing services
To sign-on as new client, simply fill in the engagement form on this website using the following link: https://rizzo-associates.de/en/#inquire
