5 Things to Keep in Mind Before Establishing a GmbH in Germany 🇩🇪

Setting up a GmbH (Gesellschaft mit beschränkter Haftung) in Germany is a popular choice for businesses looking for limited liability and credibility. The process can be challenging for International companies, but BrighTech Solutions is here to guide you every step of the way. Here are a few initial details to keep in mind before getting started. 

1. Minimum Share Capital Requirement: A GmbH requires at least €25,000 in share capital. 

2. Notary & Registration Fees: Unlike in some countries, you must involve a notary to draft and certify your Articles of Association for registration with the Commercial Register.

3. Managing Directors’ Responsibilities: At least one managing director is required, who does not need to be a German resident/citizen (although this can ease the process) but must comply with strict fiduciary duties. Mismanagement can lead to personal liability, so understanding compliance is key.

4. Corporate Tax & VAT Registration: Once registered, your GmbH must obtain a tax number and VAT ID (USt-IdNr) from the tax office. Corporate tax in Germany is around 30% (incl. trade tax), and VAT is 19%—understanding tax obligations early helps avoid surprises.

5️. Bank Account & Bureaucracy: Opening a corporate bank account in Germany involves a KYC process which can take time, especially for companies with non-EU shareholders. Some banks require in-person visits by shareholders or directors. 

Thinking of setting up a GmbH in Germany? Having a trusted partner on the ground makes all the difference and a local consultant can speed things up.

BrighTech Solutions can help you navigate the process, every step of the way.