Company Formation

Summary The salary of a managing director 💬Geschäftsführer in a German limited liability company (LLC) 💬Gesellschaft mit beschränkter Haftung (GmbH) must be set at a level that is appropriate and justifiable. While there is no fixed legal cap, key criteria apply: the company must actually be able to pay the salary without jeopardising its financial …

Summary The gUG (haftungsbeschränkt) is the non-profit form of the UG, governed by the same GmbH law but serving charitable or public purposes. It can be founded with only 1 € of share capital and must retain 25 % of its annual profits as reserves. Once the equity reaches 25,000 €, conversion into a gGmbH …

Summary The GmbH & Co. KG is a hybrid of a limited liability company (GmbH) and a limited partnership (KG). It offers founders limited liability, tax flexibility, and lower disclosure requirements compared to a GmbH, while remaining attractive for investors. Valuable assets can be separated for protection, and international founders can benefit from flexible management …

Summary A GbR contract defines how partners cooperate, contribute and share profits and losses within a German civil law partnership. Although a GbR can exist without a written agreement, a clearly structured contract avoids legal conflicts and strengthens accountability. Essential elements include the purpose of the partnership, voting rights and exit provisions. Without these details, …

Summary A German stock company or Aktiengesellschaft is a corporation with separate legal personality and shareholder ownership in Germany. Formation follows strict rules with notarised articles, board appointments, audits, and commercial register entry. The minimum registered capital of €50,000 applies, and the AG has three corporate bodies: Hauptversammlung, Aufsichtsrat, Vorstand. Stock companies must prepare and …

Summary A gGmbH combines the structure of a GmbH with a legally defined non-profit purpose. The articles of association must clearly establish the charitable mission, and profit distributions to shareholders are prohibited. Surplus funds must be used for the defined objectives, with a beneficiary clause ensuring asset transfer on dissolution. The gGmbH is subject to …