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Liquidation in Germany: How to dissolve a company
Summary In liquidation, a company such as a GmbH or UG is formally closed through a structured legal process. The shareholders pass a resolution to dissolve the company and appoint liquidators to settle its affairs. All assets must be sold, debts paid, and creditors publicly notified. A mandatory waiting period allows any remaining claims to surface. …
Read moreHow to start a holding company in Germany
Summary Knowing how to start a holding company in Germany is crucial for international entrepreneurs who want to optimise taxes, protect assets, and manage subsidiaries efficiently. The summary covers key requirements, the step-by-step formation process, legal forms for holdings and subsidiaries, plus documents, costs, and timelines. It also highlights risk management, leadership aspects, and common …
Read moreHow to set up a GmbH in Germany: Ultimate checklist for your limited liability company
Key Takeaways Setting up a GmbH in Germany involves multiple steps, from preparing documents and choosing a business address to registering with the commercial register and tax office. This limited liability company form offers strong asset protection and a professional image, making it a top choice for both local and international founders. With a minimum …
Read moreLoan in Germany: Understanding the legal basics
Summary A loan agreement under German law involves the lender transferring money to the borrower, who becomes free to use it but must repay it later. Agreements should be in writing, outlining loan amount, term, repayment schedule, interest rate, default terms, and termination rights. Larger or formal contracts often include acknowledgement of debt or guarantees …
Read morePleo: Growing is hard. Growing into Germany is even harder.
The business What is Pleo How to efficiently manage business expenditure is an issue that is as widespread as it is annoying. Pleo was born when its founders, who after struggling with this very issue in different roles ranging from employee to CFO, decided to do something about it. Together they built a solution that …
Read moreDouble-entry bookkeeping in Germany: An accounting guide for founders
Summary Double-entry bookkeeping records each transaction twice as debit and credit, ensuring both sides balance. It separates balance sheet accounts and profit and loss accounts to reflect assets, liabilities, income and expenses. It is mandatory for registered merchants and most corporations such as GmbH or UG, depending on size thresholds. Core outputs include journal, general …
Read moreAnnual financial statement in Germany: How to do your annual accounts
Summary An annual financial statement brings together a company’s accounts to show its financial position at year-end. Depending on size and legal form, businesses face different obligations, from a simple surplus statement to full annual accounts with notes and management reports. Filing and disclosure rules ensure transparency, while deadlines and signatory requirements vary according to …
Read moreHow to do bookkeeping for your LLC in Germany
Summary A German LLC company such as a UG (haftungsbeschränkt) or GmbH must apply the method of double-entry bookkeeping 💬doppelte Buchführung rather than a simple profit-and-loss summary. The annual financial statements— including balance sheet and profit & loss account—must be completed within six months of the year end or face a fine. The process starts …
Read moreHow to register a UG in Germany: Checklist for founders
Summary An Unternehmergesellschaft or UG offers limited liability that requires minimal start-up capital. Unlike a Gesellschaft mit beschränkter Haftung (GmbH), you can set up a UG with as little as €1 in share capital. Using standard articles can further reduce costs and effort. The formation process includes determining a registered office and company name, depositing …
Read moreShareholder of a German LLC: A practical guide for founders
Summary A shareholder is an equity owner with legally defined rights, governance powers, and financial interests. For most founders in Germany, this means being a shareholder of a limited liability company (LLC) like a GmbH or UG, rather than a stockholder in a stock corporation. Understanding the legal framework of shareholder structures, obligations and minority …
Read moreBusiness address in Germany: A complete guide for business owners
Key Takeaways A business address is the official location where your company receives mail and legal correspondence. 💬Geschäftsadresse The address must be physically located in Germany. Corporations and LLCs (e.g., UG, GmbH, gGmbH, GmbH & Co. KG, AG) require a registered office address. 💬Ladungsfähige Geschäftsadresse A virtual business address is only valid if it …
Read moreBroadcasting fee in Germany: How does it apply to business owners?
Summary: What is the Rundfunkbeitrag in Germany? The German broadcasting fee (Rundfunkbeitrag) is a mandatory public service fee in Germany that funds public broadcasters such as ARD, ZDF and Deutschlandradio. Introduced as a universal fee, it ensures that all citizens have access to non-commercial broadcasting (TV, content on demand, radio, podcasts). The contribution is required …
Read moreOpening a Café in Germany: What you need to know
Summary Opening a café in Germany requires securing all necessary licenses, a health certificate, a police clearance, and proof of food hygiene training. You must register with the trade office and, for GmbH or UG legal forms, enter the Commercial Register. The café must meet strict hygiene, safety and zoning standards as inspected by local …
Read moreAdvance VAT return in Germany: How it works
Summary The advance VAT return 💬Umsatzsteuervoranmeldung requires businesses in Germany to regularly report and either pay or reclaim VAT. Filing must be done electronically via ELSTER, and the period (monthly or quarterly) depends on your previous year’s VAT liability. Deadlines typically fall on the 10th of the following period, and penalties apply for late submissions …
Read moreWhat is AGB in Germany? General terms and conditions explained
Summary General Terms and Conditions 💬AGB in Germany are pre-defined contractual rules that standardise agreements between businesses and their customers. They simplify contract management and ensure clarity, especially for online shops. Although not legally mandatory, AGB help protect both sides by defining payment terms, cancellation rights, liability clauses, and other core conditions. To be valid, customers …
Read moreHow to write an invoice in Germany: What must be included
Summary An invoice in Germany must include specific elements to be legally valid. You need your full name and address, the recipient’s name and address, a unique and consecutive invoice number, the invoice issue date, and a clear description of the goods or services provided. For each line item you must show quantity, unit price …
Read moreHow to open a restaurant in Germany: Your step-by-step guide
Summary To open a restaurant in Germany, you first create a solid concept, write a business plan, and choose the right legal form. You register your business with the trade office and possibly enter the Commercial Register if using a GmbH or UG. If you want to serve alcohol, you must obtain a license …
Read moreCompany number for employers in Germany: How to apply
Applying for a company number A company number or the employer business number 💬Betriebsnummer is required to identify an employer for social insurance purposes in Germany. Social insurance agencies use this number to assign incoming contributions correctly. Without it, employers cannot register employees or report payroll data. It’s an eight-digit number that every business must …
Read moreHiring employees in Germany: Your employer checklist
Summary Before hiring employees in Germany, every employer must apply for an employer business number 💬Betriebsnummer from the Federal Employment Agency. Employers are required to collect and record key employee data such as identity documents, tax ID, pension insurance number and health insurance certificate. The employment contract must be provided in writing and include details on …
Read moreAuthorised signatory in Germany: German law explained
Summary Authorised signatory 💬Prokurist is a formal commercial power of attorney under German law, granting wide-ranging representation rights. It must be registered in the Commercial Register and can only be granted by merchants or managing directors of registered companies. The authorised signatory may conduct nearly all business transactions but cannot, for example, sign annual accounts or …
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