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UK Company Registration

The UK company has a high international legal status and a good image and is the registered place of most offshore companies in the world.

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Company Registration in France

As one of the largest e-commerce markets in the European Union, France boasts a stable economic system and a mature financial infrastructure.

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Netherlands Company Registration

The Netherlands, located in Northwestern Europe and bordering Belgium and Germany, is one of the most developed countries in the world.

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Germany is one of the four largest economies in Europe. It has a complete social security system and its citizens have a very high standard of living. Germany is very developed in basic science and applied research. Scientific research institutions famous for science and engineering technology and well-developed vocational education support Germany's scientific, technological and economic development. High-end manufacturing, represented by automobiles and precision machine tools, is also an important symbol of Germany.

I.Introduction to German Company Environment

The Federal Republic of Germany (German: Deutschland, English: Federal Republic of Germany), referred to as "Germany", is a federal parliamentary republic located in Central Europe. It ranks first in the field of innovation. It borders Poland and the Czech Republic to the east, Austria and Switzerland to the south, and Austria and Switzerland to the west. It borders the Netherlands, Belgium, Luxembourg, and France, Denmark to the north, and the North Sea and the Baltic Sea.

Germany is a highly developed industrial country. Its economic aggregate ranks first in Europe and fourth in the world. Germany's GDP in 2021 will be 3.57 trillion euros, a year-on-year increase of 2.9% after excluding price factors. The per capita GDP is 42,900 euros. Its social security system is complete and its citizens have a very high standard of living. High-end manufacturing, represented by automobiles and precision machine tools, made Germany the most innovative economy in the world in 2018, and many entrepreneurs chose to set up companies in Germany.

II.Why Register a Company in Germany?

  • Many multinational companies choose to settle in Germany, taking advantage of Germany’s central position in Europe to expand their markets in Europe. Registering a German company mainly has the following advantages:
  • 1.Build a German brand and enhance its international image
    Germany’s primary export products include automobiles, machinery, chemicals, communication technology, electrical equipment, and medical and chemical equipment. Registering and establishing a company in Germany can rapidly enhance the corporate brand image, establish an international website and team, improve international competitiveness, enjoy high international legal status, and benefit from protection within the European Union. Registering a German company can also aid in operations and brand premium for Amazon customers.
  • 2.Conducive to the development of cross-border trade
    Using a German company as a nominee for property transactions, international trade, unrestricted fund movement, and establishing a presence in local e-commerce for traffic redirection provides high credibility.
  • 3.It is convenient for German companies to open overseas accounts
    After registering a German company, non-German citizens can freely operate domestic or overseas businesses and open overseas bank accounts or
    Hong Kong bank accounts. After the company’s registered capital is received, it can be used flexibly. The euro is stable and profits can be retained in Germany to preserve the value of assets.
  • 4.Enjoy German policy benefits
    After the establishment of a company in Germany is approved, the applicant and his family members can obtain a long-term residence visa in Germany and enjoy various benefits such as medical insurance, pension insurance plans, and free education. After the company has been operating normally for 3 years, you can apply for permanent residence.
  • 5.Convenient for business visa and obtaining German green card
    After registering, a German company can obtain a German long-term business visa and can travel freely to 25 Scavenge countries (Netherlands, France, Germany, Austria, Spain, Portugal, Luxembourg, Belgium, Greece, Italy, Denmark, Norway, Iceland, Finland and Sweden).

III.Types of companies in Germany

  • There are various types of companies in Germany, and a limited liability company (GmbH) is generally chosen for company registration.
  • Gesellschaft mit beschränkter Haftung, GmbH. This is the corporate form most commonly used by foreign investors and offers a high degree of flexibility. Compared with other corporate forms, the legal procedures are relatively simple. Shareholders and third parties do not need to bear personal liability, and the company only bears debts limited to its assets. Since shareholders only have limited liability, there is a minimum paid-in share capital limit.
  • It should be noted here that under German law, the shares of a limited liability company do not need to be equal shares. For example, if the registered capital is 25,000 euros, shareholder A can subscribe for 20,000 euros, and shareholder B can subscribe for 5,000 euros. At this time, it can be said that A holds 80% of the company’s equity and B holds 20% of the company’s equity. However, there are only two shares here, marked by the amount, one is 20,000 euros, and the other is 5,000 euros. If A wants to transfer his shares in the future, in principle he can only transfer his 20,000 euro shares as a whole, or split them into multiple parts and then transfer one or more of the shares.

IV.Conditions for registering a German company

  • 1.Registered capital:
    And you must have a registered capital of at least 25,000 euros, 50% of which must be in place before application, and the remaining three years must be in place; if you need to apply for a German residence permit, you must have a registered capital of at least 100,000 euros, 50% of which must be in place, and the remaining funds must be in place within three years.
  • 2.German company registration consists of:
    The holder or owner of a limited liability company can be one or more legal persons (or natural persons), and natural persons can also be foreigners.
  • 3.German company registration name requirements:
    German companies are relatively free to name. Regardless of the size of the registered capital, as long as the words are not restricted by the German government, they can be used as company names. The German government allows company names to contain words such as international and industrial. Other special words are subject to approval by the government. German companies can also Register using a German-English name, or you can register in one of the languages, ending with GMBH.
  • 4.German company business scope:
    In principle, there are no big restrictions on the business scope of German companies. There is no need to fill in the business scope when registering. As long as the projects are allowed by the government, they can operate.
  • 5.German company registered address:
    Must be located at the company’s local business building address.

Note:
(1).If a natural person registers a German company, the ID cards, passports, and address proof documents of directors and shareholders must be translated into German and certified by the embassy.
(2).If a German company is registered in the name of a corporate legal person, at least one natural person is required as a director, and the company’s business license/registration certificate, articles of association, and director’s personal documents (ID card, passport, address certificate) need to be translated into German and submitted through Embassy certification.

V.German company taxes

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  • German company taxes
    After the reunification of the two Germany in 1990, this tax was levied in 1991 in order to pay the financial burden brought by the reunification and speed up the construction of the eastern region. The original plan was to provide a temporary tax, which was abolished in 1993 and then restored in 1995. Both individuals and companies are subject to this surtax, and its tax base is the amount of income tax payable by individuals and companies during the same period.
  • Corporate income tax
    Corporate income tax, also known as corporate tax or corporate tax, is based on the Corporate Income Tax Act (KStG). Enterprises established in the legal form of limited liability companies are the taxpayers of German corporate income tax. Corporate income tax taxpayers are divided into unlimited taxpayers and limited taxpayers. Companies with their headquarters and business management institutions in Germany bear unlimited tax obligations and pay tax on all their domestic and foreign income; companies with their headquarters and business management institutions not in Germany have limited liability. The tax liability is only taxable on the income earned in Germany. The collection method of corporate income tax is similar to that of personal income tax.
  • Business tax
    Business tax is a tax levied by local governments on corporate operating income, and its legal basis is the Business Tax Act (GewStG). All companies operating in Germany are subject to this tax, regardless of whether the legal form of the company is a joint venture or a joint venture. The tax base for this tax is the company’s operating income for the year, which is calculated based on the profits calculated in accordance with the Corporate Income Tax Law and modified by the additions and subtractions stipulated in the Business Tax Law.
  • VAT
    Value-added tax is a shared tax and one of the most important taxes in Germany. Its collection scope covers commodity production, circulation, import links and services. Germany’s VAT system requires that the final consumer actually bears VAT, so strictly speaking, VAT is not a tax burden on the enterprise. In principle, all product and service transactions occurring within Germany are subject to VAT, but some business activities are exempt from tax, such as exports and some banking and insurance businesses. General consumers cannot request a refund of VAT, but foreign tourists can apply for a refund of VAT on purchased items when leaving the EU customs border.

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