blog
14/05/2025

How to Set Up a Company in Germany: A Guide to GmbH Formation for Foreign Businesses

Germany remains one of Europe’s most attractive and stable markets for international businesses. Whether you are expanding your operations, entering the EU market, or setting up a subsidiary, forming a company in Germany is a structured but achievable process. In most cases, the preferred legal form is the GmbH (Gesellschaft mit beschränkter Haftung) – the German equivalent of a limited liability company.

At WW+KN, a Baker Tilly Company, we support international businesses in every step of the GmbH formation in Germany, offering both tax and legal expertise under one roof.

 

GmbH – The Standard Legal Form in Germany

The GmbH is the most common form of corporation in Germany and offers:

  • Limited liability for shareholders
  • Clear internal governance structure
  • High market acceptance and credibility
  • Flexibility in ownership and capitalization

The minimum share capital required is EUR 25,000, with at least EUR 12,500 to be paid in before registration. Shareholders can be individuals or corporations, and directors (Geschäftsführer) do not have to reside in Germany.

 

Steps to Set Up a GmbH in Germany

  1. Choose a company name and check availability
  2. Draft and notarize the Articles of Association
  3. Open a company bank account and deposit share capital
  4. Register the company with the commercial register (Handelsregister)
  5. Obtain a tax number and VAT ID
  6. Register as employer (if hiring staff)
  7. Provide a valid German business address (Zustelladresse)

Each of these steps requires proper coordination, especially for non-resident shareholders or directors. We handle communication with notaries, banks, authorities, and the tax office on your behalf.

 

What International Businesses Should Know

  • The GmbH must have a valid address in Germany (not a PO box)
  • A German-speaking representative or advisor is helpful for local communication
  • Tax registration and accounting setup are part of the startup process
  • A Freistellungsbescheinigung (tax exemption certificate) may be required for dividend distributions
  • Digital tools and reporting interfaces (e.g., DATEV) can be integrated early on

With proper preparation, the full formation and registration process usually takes between 4 and 8 weeks.

 

Why Work with WW+KN

We provide end-to-end support for GmbH formation in Germany, combining legal structuring, tax registration, accounting setup, and business address solutions – all coordinated in English.

As part of Baker Tilly, we also support clients with international operations, holding structures, transfer pricing, and cross-border planning.

 

Contact Us

Thinking about setting up a GmbH in Germany?

Contact our English-speaking team at office@wwkn.de or visit www.wwkn.de/en – we’ll be happy to assist you with company formation, tax registration and ongoing accounting support.