Setting up a company in Germany: Your guide to a successful start

Germany is one of the most attractive business locations in Europe and offers numerous opportunities for start-ups. But before you start your company, there are some important legal and bureaucratic steps to consider. In this article, you will find out how to set up your company successfully in Germany.

1. choose the right type of company

Before you register your company, you should determine the appropriate legal form. Here are the most common options:

• Sole proprietorship: Ideal for solo self-employed persons and small businesses, low start-up costs.
• UG (limited liability): A mini-GmbH with lower starting capital (from € 1), but the obligation to provide evidence of reserves.
• GmbH (limited liability company): Most popular legal form for medium-sized companies, minimum share capital of € 25,000.
• AG (public limited company): For large companies with investors, more complex start-up requirements.

Tip: If you have little start-up capital, a UG could be a good alternative to a GmbH.

2. step-by-step guide to setting up a business

• Business registration with the trade office (except freelancers)
• Commercial register entry (for GmbH, UG, AG)
• Apply for a tax number & VAT ID from the tax office
• Clarify IHK/HWK membership
• Open a business account (mandatory for corporations in particular)

3. subsidies & financing options for founders

Germany offers numerous support programs for start-ups. Here are some important options:

• Business start-up grant (Employment Agency): If you are starting up from unemployment.
• KfW start-up loan: Favorable loans for start-ups and the self-employed.
• INVEST grant: If you are looking for investors, there are subsidies for investments.