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How to find a good name for your company: Legal regulations for the GmbH and UG

Summary Choosing a strong company name in Germany requires distinctiveness, availability in the commercial register, and a clean trademark search. Check for conflicts at the DPMA and align your name with the required legal suffix (GmbH or UG). The IHK often reviews names for clarity and absence of misleading terms. Secure matching domains and social …

Double-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 …

Calendar year vs. fiscal year in Germany

Summary The decision whether to adopt the calendar year (January 1 to December 31) for the fiscal or financial year or to opt for starting on a chosen date depends on your business cycle. If you use the standard articles 💬Musterprotokoll for your UG/GmbH formation in Germany, the financial year automatically follows the calendar year. …

Profit and loss statement in Germany: EÜR explained in English

Summary The simplified profit-and-loss statement called profit and loss statement 💬Einnahmenüberschussrechnung (EÜR) is designed for freelancers and small businesses in Germany that are not required to use full bookkeeping. It is based on the cash-in/cash-out principle, where only actual payments count, and it calculates profit as income minus expenses. Certain thresholds for turnover and profit …

Vouchers: The Holy Grail of Customer Engagement

Contents Why you should use vouchers When to use vouchers for maximum customer engagement How to get maximum ROI on your voucher campaign How to use customer engagement to avoid voucher fraud The power of vouchers Why vouchers? Why should you be using discount vouchers for your business? Because it might be the perfect customer …

Tax deductions in Germany: What self-employed people need to know

Summary In Germany, self-employed individuals are entitled to claim a variety of tax deductions. Many everyday business expenses—from equipment and software to travel, insurance, and training—qualify for tax deductions if documented correctly. Claiming these costs can lower your tax liability and income tax burden significantly, and sometimes lead to a tax refund. Contents Intro Overview: …

Self-employed and tax in Germany: What do business owners have to pay?

Summary Navigating the tax rules as a self-employed person in Germany means understanding income tax, VAT, trade tax and other levies you may face. Your legal form—whether you operate as a sole proprietor, freelancer or company—directly affects which taxes apply and how your profit is calculated. To manage this, use a reliable tax calculator tailored for …

Trade registration in Germany: Everything you need to know

Summary In Germany, trade registration at the local trade office is required for most commercial activities; liberal professions and farming are exceptions. To complete trade registration you file a registration form, show ID, and for companies provide a Commercial Register extract, then receive the Gewerbeschein. The office informs the tax office and the IHK/HWK, and you finish …

Notary fees and tax for setting up a UG in Germany

Summary Typical notary fees for the formation of a UG (haftungsbeschränkt) vary significantly depending on whether you use standard artciles or 💬Musterprotokoll or customised articles of association 💬Satzung. Net notary cost starts at approximately €180 for a single shareholder, rising to around €250 for multiple shareholders. With customised articles, founders can expect notary fees around €850. …

vvGmbH in Germany: AMC (asset management company) explained

Summary A vvGmbH (vermögensverwaltende GmbH) is a specialised company form in Germany designed exclusively for the management of private assets such as real estate, securities or shareholdings, rather than active commercial trading. Its main appeal lies in potential tax benefits by shifting what would be private investment income into a corporate structure, thereby reducing withholding …

When should I incorporate my startup? Incorporating in Germany pre- vs post-funding

Contents Scenario 1: Incorporate first. Funding second Scenario 2: Funding first. Incorporation second Understand who your potential investors are Samar Fathulla | founder consultant I’m here to help founders build strong, successful businesses. Let’s talk about your formation and find the best way forward together. 🌍 International founders 💬 500+ consults 🤝 Tailored advice schedule …

Commercial register invoice: Beware of scam letters!

Summary Many companies that recently registered in Germany receive fraudulent invoices claiming payment for a commercial register entry. These fake documents mimic official court charges but demand inflated fees (€300 to €1,200) and use urgent deadlines to pressure recipients. Red flags include foreign IBANs, short payment terms, and payment to private entities rather than the …