Rechtsanwaltskanzlei Wollring

Dr. Moritz Wollring - Founder and Owner of Wollring Law

“For businesses, Labor Law is frequently seen as an obstacle. But we know from practice: the opposite is the case. With our exclusive focus on employers, we understand how to leverage Labor Law to minimize unnecessary expenses and enhance the security and profitability of employee deployment."

Open a company in Germany

Leverage Expert's Advice to
Open a German Company

Why are foreign investors hitting a snag in their expansion plans into Germany? Tough regulations, annoying bureaucracy, crushing trade taxes or lack of planning with experts?

The BIGGER problems often surface during dispute settlement. For example:

  • a mismatch of the company's objectives and the type of legal entity
  • ill-advised tax registration
  • complicated drafting of the shareholders' agreement or articles of incorporation
  • inoperative corporate bank account
  • un-notarized company documents

Often, foreigners run into the above-stated problems because they decide to engage a discounter service provider or cheaper agent to get the incorporation paperwork completed quickly.

But there are no shortcuts to lasting success. Ideas, teamwork, and execution is the winning strategy to smoothly Europe's largest economy.

That is exactly what the experienced Dr. Moritz Wollring and his team of expert lawyers assist foreign founders to do. We help you find your footing in Germany and prevent future problems.

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Consultation Fields:

 Your Benefits Find out more
Legal IssuesFind out more
Company TypesFind out more
Legal ProcedureFind out more

Partnering with Us

What is in it for You?

Experience:

Legal advice tailored to your business needs

Efficiency:

Seamless company registration process

Specialist:

Unlocking financial aids within the tax ecosystem

Knowledge:

Leverage technology and people to deliver the best results

 Prepare for International GrowthArrange a non-binding initial consultation

Legal Issues with the Tax Office,
Bank Account and the German Authorities

Should foreigners start a company in Germany online?

Foreign investors can only complete some parts of the business registration online.

The problem is whether foreign founders understand the complicated process and requirements of opening a company in Germany or possess the expertise to predict and avoid certain legal situations.


This is sadly the case with local discounter services too.

Problems Associated with DIY and Discounter Services

"Excessive frugality in the wrong place has caused many founders in Germany lasting legal problems."

Insufficient Legal Knowledge:

  • Company incorporation requires extensive knowledge of the law and business to properly navigate the legal landscape.

  • foreign investors who are serious about protecting their interests understand the value of a corporate specialist with a wealth of experience to draw from.

Tax Registration:

  • While a tax ID is important, it is not all you need to pay taxes or benefit from tax credits. In every country, the income tax laws are often complex and cause serious offence when breached.

  • Discounter Services will promise a valid tax number, but will not act as a tax advisor and may not even obtain the appropriate registration, thereby causing future problems for investors and the company.

Shareholding Structure:

  • The specialist corporate legal team at Wollring Law Firm will advise you on the appropriate shareholding structure, minimum share capital, and documents to protect your interests. This includes preparing partnership agreements, articles of incorporation, etc.

Inoperative Business Bank Account:

  • A foreign company can open corporate bank accounts with online banks.

  • The bank will conduct a due diligence check before the company's German bank account can be fully functional.
  • If there is any problem with the incorporation or shareholders, the bank will refuse to permit any cash or wire transfer out of the account until the problem is resolved. This implies increased costs and delays for your business.

RESTRUCTURE COMPANIES INSTEAD OF LIQUIDATING THEM

A positive outcome would often have been possible

  • Leading law firm for insolvency and restructuring law: Our long-standing experience, leading role in the further development of insolvency law, our legal-economic approach, and our conviction to rehabilitate companies threatened by insolvency through advisory services, rather than settling them through the classic insolvency process, make us the optimal contact for forward-thinking entrepreneurs in economically challenging situations.
  • Profound knowledge of recently established legal procedures: The founder of the firm, Dr. Moritz Wollring, is one of the few specialist lawyers for restructuring and reorganization law and is recognized among colleagues as a pioneer of the new business-friendly restructuring law.
  • High performance standards of a young, rapidly growing law firm with ambitious specialists: Wollring Law consists of a team of ambitious high achievers and specialized lawyers and business consultants.

"Dr. Moritz Wollring - one of the leading specialists in insolvency law and restructuring."

German Company Types

What Type of German Company Suits You?

Foreign investors often require insights to start and scale their business in a new location. It is the smart way to ensure more profits, less scrutiny and trade tax cuts.

If your first or next stop is Europe's largest economy, then you need to understand five important aspects:

  1. 1
    German company formation procedures and structures
  2. 2
    Shareholding, capital contribution and exit dynamics
  3. 3
    Tax and employment considerations
  4. 4
    Legal environment and regulations
  5. 5
    Dispute resolution mechanisms or justice system

Understanding the GmBH (Limited Liability Company)

The Gesellschaft mit beschränkter Haftung (GmBH) is the German version of the Limited Liability Companies (LLC) in the US.

Not only that, it is often the go-to option for a parent company seeking to establish a German branch office or subsidiaries.

The minimum share capital for LLC incorporation is €25,000. As expected, the shareholders are the business owners while the Managing Director leads the Board of Directors to run its daily affairs.

Dr. Wollring advises German companies on shareholding rights, documentation, and powers granted to directors depending on the operational and ownership structure of the parent company. This leads to less friction and disputes between shareholders and effective management of the company.

The Mini-GmbH (UG)

The Mini-GmbH (UG Company) was introduced to encourage startups in the German ecosystem.

It is very similar to the GmbH in its set up but the minimum share capital is €1.

Aktiengesellschaft (AG) (Public Company)

These companies are larger in size and quoted on major stock exchanges like the Frankfurt Stock Exchange (FWB) and the Börse Stuttgart Stock Exchange.

Foreign companies can leverage the performance of their shares in foreign stock markets to make an entry into the German market.

AG Companies are quite rewarding but the complicated process often discourages investors. There are several regulations on the business activity of AG Companies.

Once the company name is entered on the commercial register, the promoters may proceed to register the company with the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) - the counterpart of the U.S. Securities and Exchange Commission (SEC). The BaFin requires AG Companies to file a registration statement to be listed on the stock exchange.

The minimum share capital for a public company is €50,000.

A team of specialists at Wollring Law Firm have assisted foreign investors for years, without fail. The legal support covers everything from planning to company incorporation and post-incorporation activities.

What are the Types of Partnership Registration in Germany?

The Wollring Law Firm has a team of lawyers dedicated to servicing the legal needs of individuals or entities seeking a business partnership in Germany.

We will assist in submitting all the necessary documents at the local trade office to ensure appropriate registration.

There are no minimum capital requirements for partnerships.

Offene Handelsgesellschaft (OHG) (General Partnership)

  • The partners have unlimited liability
  • The business does not have a separate legal personality
  • Partners pay income tax based on their earnings
  • A convenient option for a sole trader/entity in partnership with another sole trader/entity

Limited Liability Partnership (LLP) 

  • All the partners have limited liability
  • Only professional service providers like lawyers, accountants and auditors can register an LLP

Kommanditgesellschaft (KG)

  • Some or all the partners, except the general partner, have limited personal liability
  • The general partner can be held personally liable for the business

Procedures for starting up a business in Germany:

How to Start a GmbH, AG or Partnership in Germany

Trade registration for business in Germany is primarily governed by the local trade office domiciled in a municipality or local government authority.

1. Notarization of Documents:

  • All official company documents are required to be notarized.
  • Notarization is done in a notary officer's local chamber before registration.
  • After payment of the notary fees, the notary invoice will be issued by the officer for submission at the trade office.

2. Application to the Trade Office:

  • An application will be submitted to the municipal trade office with details of the founders, business name and activities. The company name is then entered into the trade register.

3. Review of Documents and Grant of License:

  • The office will subsequently review all the documents submitted before granting the trade license. A query will be raised if there is any irregularity with the documents or business objectives.
  • The registration fees must also be paid before the license is granted.

4. Tax Office Registration:

  • The promoters will be required to complete the tax office questionnaire to kickstart the registration.
  • Inaccurate or ill-advised information may lead to serious tax implications for the business. It may also prompt investigations into incoming and outgoing transactions, transaction receipts, etc.
  • Most companies require expert tax advisors and appoint tax representatives to complete their registration with the tax authorities.
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Betriebsrat Mitbestimmungsrecht

Can I use a Notary Service to Open a German company?

The last thing a smart foreign investor will do is to engage a discount provider or unlicensed agents.

Notary services are used to attest documents and not to register a company or open an online bank account.

In the short term, the option appears very cheap and quick. But the mid and long-term stories are often told in damning news headlines and the courtrooms.

open a german company

Is Germany a Good Country to Start a Company?

The European Union recognizes Germany as a global powerhouse and a trade destination for US High-Networth Individuals and business conglomerates.

Foreign companies can take advantage of a company formation in Germany to increase revenue and manage risks. The benefits of opening a German branch office include tax benefits, ease of doing business, an energetic and skilled labor force, and clear legal regulations.

Therefore, to achieve a company objective in Germany, you must get the registration right. Otherwise, there might be problems and delays to the launch timeline.

Foreign founders can also visit Germany or apply for permanent residence in Germany. You may also decide to acquire local businesses instead of starting the company from scratch.

This is why you need an experienced law firm in Germany with knowledge of the local regulations and experts in liaising with the relevant German authorities to make your vision a reality.

"

“I was deeply impressed by the professional competence of lawyer Dr. Moritz Wollring, as well as his personal dedication and determination to achieve practical goals. In my life experience, I’ve found that this combination of valuable qualities isn’t always common in every profession.” 

A. C. - Client at Wollring Law

"Employment law offers amazing opportunities for entrepreneurs to operate more profitably and securely - if you know how. Let's talk about your opportunities and potential for optimization without obligation. Entrepreneur to entrepreneur." 

Dr. Moritz Wollring
Founder of The Firm Wollring Law

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Offices

Our Locations in Germany

Wollring
Alfredstraße 375
45133 Essen

Wollring
Esplanade 23
20354 Hamburg

Wollring
Apfelstraße 245
33611 Bielefeld

Wollring
Lindenallee 51
47533 Kleve

Wollring
Dreischeibenhaus

40211 Düsseldorf

Wollring
Thurn-und Taxis-Platz 6
– Nextower –

60313 Frankfurt am Main

Wollring
Kurfürstendamm 14
– Gloria-Haus –
10719 Berlin

Opening hours

Monday to Friday: 
9 am to 8 pm

Saturday and Sunday: 
By appointment



SHORT-TERM APPOINTMENT SCHEDULING

Call directly and get immediate advice

 Call directly and get immediate advice0800 7237028453