Germany continues its commercial and economic successes with its export performance in recent years. The country continues to be the focus of attention of foreign investors with its activeness in international trade and its development in the fields of law and democracy.
In our article, we provide information about the establishment of mini limited companies and limited companies in Germany.
About Mini Limited Company
The practical aspect of Mini Limited Company is that it foresees 1 Euro
People who want to establish a company but do not have capital can establish a mini limited company by making use of this company structure.
In terms of liability due to the commercial activities of the company, there is no difference between mini limited and limited company.
On the other hand this company structure is designed only for small businesses, your company will be seen as a small business. Problems may also occur during the withdrawal of bank loans on behalf of the company.
Company Establishment Stages;
- Certification of the articles of association at any notary public in the place where the company will be established
- Opening a bank account on behalf of the company and paying the capital amount to the account
- Registration of the trade registry in the court
- Registration of companies in chamber of commerce and tax office and realization of company tax opening
Limited Company
- The amount of capital required for the establishment of a limited company is 25,000 Euros. This amount will be paid to the bank account to be opened in the name of the company after the notarization of the company contract.
- However, it should not be forgotten that individuals must have a residence permit or a business visa in Germany for company establishment.
- For company establishment procedures, only the company representative must be present at the German notary.
- In addition, the company representative will need a power of attorney (of all partners) to be able to carry out all transactions alone. Thus, the establishment procedures will be carried out through the company representative.
- Company partners are not liable with their personal assets due to company debts.
- As a result, the establishment phase of both companies is the same. Investors need to decide which type of company will suit them in terms of the investment they are targeting and which company they want to continue their commercial activities through.
Hasan Seyyit Peker
Lawyer
Phone: 0535 578 74 55