If you’re looking into how to start a company in Germany from abroad, the requirements depend on the type of business you want to set up and your situation as a founder. Get a clear overview of the main requirements and registration steps before you begin.

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Who Can Start a Company in Germany?

Foreign nationals can start a company in Germany even if they live abroad. 

The rules are different if you plan to move to Germany and work for the company yourself. EU, EEA and Swiss citizens can move for self-employment without a visa or residence permit. Non-EU founders who want to live and work in Germany usually need the right residence permit. However, you can still own a company without becoming a resident.

It’s also important to separate ownership from management. A shareholder owns part of the company, and a managing director runs and represents it. The same person can have both roles, even outside Germany.

A German company needs a registered office and a domestic business address. It may also need a person who can represent it locally.

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No single business form suits every founder. Someone working alone might operate as a sole proprietor or as a Freiberufler if their profession qualifies. A group of founders, meanwhile, could choose a partnership, such as GbR, OHG, KG or GmbH & Co. KG, which differ in liability, capital, registration and administration.

If €25,000 in share capital is manageable, you can go with a GmbH. A UG is another route if you want limited liability without putting that much money in at the start. Its legal minimum is €1, but 25% of its annual profit, after loss carryforwards, must go into a legal reserve.

An existing foreign company can also open a branch in Germany, which remains part of the overseas business. 

How to Start a Business in Germany as an International Founder

How to Start a Business in Germany as an International Founder involves choosing the right legal form, preparing the required documents, registering the business and setting up its tax and administrative obligations.

1. Choose the legal form and prepare the documents

First decide on your legal form, business activity, company name, registered office and business address in Germany. Then prepare the incorporation documents and get them notarised where required.

2. Pay in the capital and register the company

If your legal form requires share capital, open a company bank account and pay the required amount into it before registration. Then submit the registration application to the Commercial Register.

3. Complete trade and tax registration

Once the business is set up, check with your local trade office whether you need to register it. You’ll also need to contact the Finanzamt about the tax registration.

4. Set up ongoing administration

IHK or HWK registration comes next if it applies to your business. You’ll then have to manage the ongoing admin, including bookkeeping, tax filings and other compliance requirements.

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Can You Start a Company in Germany From Abroad?

In some cases, you can set up a GmbH or UG online. For the online notarisation, you’ll need an accepted electronic ID, and the exact requirements depend on your nationality and the ID document you submit.

If a shareholder can’t attend, they can have someone represent them with a valid power of attorney. Foreign documents may also need a certified translation, apostille or other authentication.

If you’re from outside the EU and want to move to Germany, you’ll need to meet residence requirements.

How Much Does It Cost to Start a Company in Germany?

The cost depends on the legal form and the help you need. 

Legal formShare capitalMain formation costs
Sole proprietorshipNoneTrade registration if required
PartnershipsGenerally none; corporate partner capital applies to a GmbH & Co. KGRegistration, administrative fees and trade registration if required
UGFrom €1Notary, Commercial Register and trade registration
GmbHFrom €25,000Notary, Commercial Register and trade registration

Share capital belongs to the company, so it isn’t a formation fee.

If you’re setting up from abroad, you may also need to pay for a business account for international founders, a business address, professional advice, translations or extra paperwork. Once the company is set up, you’ll also have ongoing costs (such as accounting and annual reporting).

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What Taxes and Obligations Apply After Starting a Company in Germany?

Once the company is set up, register with the Finanzamt (tax office) to get a tax number. You can also apply for a VAT ID if needed, for example for certain EU transactions. Corporations are generally subject to corporate income tax and trade tax, while partnerships are generally taxed at the level of their partners. VAT may also apply to taxable supplies. 

Corporations must also keep proper books with double-entry accounting and prepare annual financial statements. These may also need to be filed or published. If you hire employees, you’ll need to handle payroll, social security and health insurance contributions.

Finally, entities subject to the transparency requirements must report their beneficial owners to the Transparency Register and keep the information updated.

FAQ

Can a foreigner start a company in Germany?

Yes, even if they live abroad. If you’re planning to move to Germany and run the business there, you may need to meet certain residence and work requirements.

What is the easiest company structure to start in Germany?

A sole proprietorship is generally the easiest company structure to start in Germany. A UG is another straightforward option if you want limited liability.

How much does it cost to start a company in Germany?

Costs depend on the legal form and may include share capital, notary and registration fees, professional advice and other setup expenses along the way. 

Can I start a company in Germany remotely?

Yes, in some cases. The entire formation process can be handled through online notarisation, but that isn’t available for every setup. It depends on the documents and the details of your case.

Do I need a German business address?

Yes. Every German company needs a registered office with a business address in Germany, since official mail and legal notices are sent there.

Do I need a German bank account to start a company?

For a GmbH or UG, the share capital must be paid into the company bank account before registration can proceed. A German account is customary but not a legal requirement.

How long does it take to register a company in Germany?

A straightforward formation may take around 2-4 weeks. Delays may arise from foreign documents or missing paperwork.

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