How to start a company in Germany: A company formation checklist

How to start a company in Germany:

1. Choose the right company form
2. Come up with a company name
3. Decide on the company objective
4. Apply for an IHK check
5. Make a notary appointment
6. Draft your articles of association
7. Prepare for the notary appointment
8. SHOW UP to the notary appointment!
9. Open a business bank account
10. Deposit the Stammkapital (share capital)
11. Send the share capital’s deposit slip to the notary
12. Pay the notary invoice
13. Pay the Handelsregister invoice
14. Don’t get scammed
15. Wait for your company to be entered into the Handelsregister
16. Find a tax adviser
17. Register with your local Gewerbeamt
18. Make sure you have your company’s Ust.-ID from the Finanzamt
19. Get the right insurance
20. Register with the Transparency Register
21. Create a bookkeeping system
22. Lay the foundations for your company’s Jahresabschluss 
23. Set up a payroll accounting system

You don’t have to follow the steps in this order. In fact, start working on some of the steps as soon as possible. For example, begin shopping around for a bank account right away (it can take a while to find a good match).

If you want to hack the process, you can do that with an expert guide who will help you incorporate your company in the shortest time possible.

We hope this helps you on your way to starting a company in Germany!

1. Choose the right limited liability company for your business

• Make sure it’s the right legal entity for your purposes.
• Check if you have sufficient share capital:
  • For a UG the mandatory €1- but €1,000 or above is recommended.
  • For a GmbH the bare minimum is €12,500, but at least €25,000 is best.

Founders’ Hack: The UG is the ‘mini’ GmbH because it requires less share capital (as little as €1-). But, if you want your formation to be hassle-free, you should opt for at least €1,000 of share capital.

However, if you get close to €12,500 in share capital consider the GmbH. The formation of a GmbH requires only half of the share capital to be deposited right away. Since the minimum share capital for a GmbH is €25,000 that amounts to €12,500. But, keep in mind that this impacts the limited liability of the corporate entity as shareholders will be personally liable for the missing €12,500 if something were to go wrong.

2. Come up with a company name

• Check the commercial register (Handelsregister) to find out if the name has already been taken.

3. Decide on the Unternehmensgegenstand (object of the company)

• Under German law, this needs to be quite specific.
• Check the Handelsregister to see what companies similar to yours have used for their Unternehmensgegenstand.

4. Apply to the German Chamber of Commerce and Industry (IHK) for a company name and company purpose check

• This service is free!

5. Find a notary and make an appointment 
to form the company

• Check out https://notar.de to find a notary that speaks your language.

Note: We have a network of notaries and can do this for you. 

6. Draft your company’s articles of association

• Use either a:
  • standard template for your statutes and registration statement (known as the Musterprotokoll); or
  • a customised version that you’ve drafted yourself (known as a Gesellschaftsvertrag or Satzung).

7. Get together your necessary documents for the notary appointment

• You’ll need the following:
  • Articles of association
  • Shareholder’s list
  • Founding documents needed to open a bank account

8. SHOW UP to the notary appointment with your fellow shareholders to make it official!

• Don’t forget to bring your ID and necessary documents!

Foreign founders beware: You’re not a German national or an EU citizen? Germany has some fun in store for you:

• Shareholder: You can be a shareholder of a German company. But, if you use a foreign company as a go-between you need to be well prepared. A notary in your jurisdiction needs to confirm in detail that the company exists and is properly represented. This confirmation needs to be apostilled by the relevant state authority. So get started on this right away or reconsider. This applies to all foreign companies (even in EU countries).
• Managing Director: This is a tricky one which causes a lot of trouble. We recommend you make sure that you have a VISA allowing for multiple entries or some form of permanent residence. Again, double-check with a notary or lawyer EARLY on in the process.
• Bank: German “offline” banks often refuse to render services for foreign founders (even worse if you found with a foreign company). Being an EU citizen helps. You may think you can hack this with an online bank. But, they have problems here too. In our experience, you will not be accepted if your country is not on this list: ID Now.

Note: Seek legal advice to get this right!

Founders’ Hack: Notaries can vouch for the costs of the registration with the Handelsregister. Ask your notary about this possibility. Some do it only for known customers. Some do it if you deposit the amount in cash with them.

This can save about a week in time because the Handelsregister will process your registration right away. Otherwise, they will send you an invoice and wait until you have paid the fee.

Important: Make sure your mailbox has your company name on it! If you cannot receive mail causes all kinds of problems.

9. Find a bank that will accept you and open a business bank account with them

• Take your formation documents given to you by your notary.
• No need to wait for step number seven. Start your bank search early on in the company formation process.

Shameless plug: From the many many incorporations we have managed, we’ve seen it all when it comes to banks: the good, the bad and the ugly. You can leverage our years of first-hand experience via this tool.

Founders’ Hack: Start talking to banks as soon as possible (even before you go to the notary) and talk to several in parallel. For “offline” banks you need to appear in person, so if you start your search late in the process, you’ll lose a lot of time.

Tip: Set up your bank appointment to occur right after the notary appointment!

Don’t forget: Check with the bank what documents you need to bring and in what format. Some banks accept pdfs while others require the original documents.

10. Deposit the Stammkapital (share capital) via cash or wire transfer into the company’s bank account


• Write Stammkapitaleinlage [DATE] in the reference field.

11. Send the share capital’s deposit slip to the notary


• Do this promptly so the notary doesn’t have to chase you up for it (you want to get on your notary’s good side).

12. Pay the notary invoice

• Be a good founder and do this ASAP.

Fun fact: Technically registration will happen even if you do not pay the notary. But, don’t do this. You want to keep your notary onside for future official matters, including funding rounds.

13. Pay the Handelsregister invoice

• Unless, of course, the notary has done this for you.

14. Be on alert for the ‘legal’ scams that get sent to you after your company is registered

• There are a number of people sending fake official invoices, usually for a commercial register of some type.
• Before paying anything make sure it’s legitimate by looking out for the following three things:
  • The recipient has long German words such as Kosteneinzugsstelle der Justiz;
  • A simple IBAN number; and
  • The amount should equal €150-

15. Wait patiently until the Handelsregister does its thing

• Your notary will notify you once the company is entered into the commercial register
• You can also check online at www.unternehmensregister.de.

16. Find a tax adviser

• Grant your tax adviser power of attorney do the following:
  • Get help to complete the Fragebogen zur steuerlichen Erfassung (tax registration questionnaire); and
  • Ask for advice on the different tax implications for your company

NB. Start the selection process early. You want to get a feel for your tax adviser. A good one can make sure your tax registration questionnaire is accepted by the tax office. Remember, no tax registration, no invoices. No invoices, no income.

PS. Before you begin setting up your business, think about getting a tax adviser to help you understand the tax implications of the different legal structures in Germany. If legal liability isn’t a must then find out how much money it would cost you to maintain a non-incorporated business vs. an incorporated one. Corporations generally have a lower tax rate but cost a lot to maintain (ie, bookkeeping and tax returns fees are much higher).

17. Submit your trade registration form to your local Gewerbeamt

• Trade registration in Germany is called Gewerbeanmeldung. This is done at your local trade office which is called a  Gewerbeamt.
• Click here for a guide on how to fill in the Gewerbeanmeldung form. 
• Can be done in parallel with the previous step.

Tip: If you’re setting up a business in Berlin or Hessen it can complete the registration online in English.

18. Make sure you have your company’s Tax ID (Ust.-ID) from the Finanzamt (tax office)

• You need this to make your invoices valid!

19. Get the right insurance for your business and as an expatriate

• When moving to Germany there are many different insurances that are mandatory as well as desirable for both your business and you as an individual. The bureaucracy is complex and the choices are broad. You need a partner on the ground in Germany to discover the policies that are the best fit for you and your enterprise.

Shameless plug: We can talk you through all the different expat insurances you need.

Be more specific

If you want a checklist that is specific to the type of limited liability business you want for your business, we’ve got you covered:

• How to set up a GmbH: The definitive guide to starting a limited liability company in Germany
• How to start a UG company: The ultimate formation checklist