A Comprehensive Checklist To Facilitate Hassle Free Setting Up Of A Company In Germany

The global business community is well aware of the fact that setting up a venture in Germany is relatively simpler and effortless. However, this surely does not eliminate the responsibility of the people interested in setting up a company in Germany to follow the proper procedure for the same. While the provision within the German company law minimize the formalities of establishing a business in Germany for both local and foreign investors, having a basic checklist of the key tasks associated with the process can prove extremely beneficial. Given below is such a comprehensive checklist that interested investors can refer to for making the whole process of business establishment extremely smooth and hassle free.

Choose An Appropriate Legal Structure For The Company

Even before they start with the process of setting up a company, the investors need to decide about the legal structure that would best suit their interests and needs. The investors can opt for a UG, AG, GmbH or even a mini GmbH structure based on the share capital available as well as the type of venture they intend to operate. In general, the GmbH structure is the preferred choice for a majority of investors.

Decide About The Company Name

Once the decision about the legal structure of the company has been made, the next step is to decide its name. The investors need to make sure that they choose a unique name for their company and for this they can check the commercial register to learn about the names that have already been taken.

State The Objective Of The Company Quite Clearly

The German law makes it mandatory for the founders of the company to state its objective in a clear manner. The investors can seek the help and guidance of the German Chamber of Commerce and Industry in this context. The government body checks the name and objective of the company for free and offers advice to the investors whether or not these are compliant with the provisions of law.

Start The Actual Company Formation Process By Hiring A Notary

Hiring the services of a notary for company formation is the first concrete step taken by the investors in this direction. In case of overseas investors, it is advisable to hire a notary familiar with their native language to prevent any misunderstandings and misrepresentation of facts.

Draft The Articles Of Association

The next step comprises of drafting the articles of association by the company founders. This can be done either by using a standard template for the statues and registration or by using a customized version tailored to meet the specific needs of the company.

Accumulate The Essential Documents

Whether the investors intend to establish a UG or an AG or are interested in setting up a GmbH in Germany, they need to collect all the necessary documents for notary appointment. These documents include the articles of association, list of shareholders and the founding documents required for opening a bank account.

Make It Official

The final step on setting up a business in Germany is for the founders to keep the notary appointment along with all their shareholders to make it official.