What is the German GmbH

GmbH is the abbreviation of Gesellschaftmitbeschränkter Haftung, otherwise known as a company with limited liability (LLC). Most international investors choose this entity for the purposes of doing business in Germany. As with all other companies in the country, the German GmbH has to be listed in the Commercial Registry before it begins to operate.

Minimum required share capital of the German GmbH

You must deposit at least EUR 25 000 in cash or other assets in order to set up a German GmbH. This capital is split into non-transferrable shares that cannot be registered for the stock exchange. Also, each member of the GmbH must provide no less than EUR 100 to obtain a nominal value share.

Shareholder requirements

The incorporation of a Germany GmbH requires a minimum of one shareholder. The shareholders are responsible for the debts and obligations of the company to the limit of their own contributions to the entity’s capital.

Management structure of the German GmbH

The German LLC / GmbH is managed by its directors. They have the right to represent the entity regarding all business matters. The shareholders appoint the managing directors. Any shareholder can simultaneously perform the functions of a director.

Verification of the German GmbH

All LLCs (GmbH) in Germany must keep financial records. The records must include complete information on the commercial transactions. LLCs also have the obligation to submit financial statements on a yearly basis, complemented by balance sheets and declarations on income.

Additional requirements 

It is obligatory for a German company to have a name containing its form of business. In this particular case, all names should terminate in GmbH. The LLC’s name may, but does not have to include details about the company’s shareholders or activities. The requirement is that it does not belong to any other company.

In case you plan to set up a German GmbH, you can contact our specialists in company incorporation for a customized offer.

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