Start your business in Germany — step by step. For expats and international founders. Everything from choosing your structure to issuing your first invoice.
| Feature | GmbH | UG (haftungsbeschränkt) |
|---|---|---|
| Minimum capital | €25,000 | €1 (one euro) |
| Capital payment | 50% on founding (€12,500) | 100% on founding |
| Profit reserve | Not required | 25% of annual profit until €25K reached |
| Credibility | High | Medium |
| Corporation tax | ~15% + trade tax | ~15% + trade tax |
| Recommended for | Established / growing business | Early-stage / testing |
As a non-EU national, you can be shareholder and Geschäftsführer in both. However, some banks are more willing to open accounts for GmbHs. If you plan to hire or sign large contracts, GmbH carries more weight with German partners.
Non-EU nationals: If your residence permit is linked to employment, starting a GmbH may require an amendment. Check with the Ausländerbehörde BEFORE registering. A Niederlassungserlaubnis removes this restriction entirely.
You cannot form a GmbH/UG without notarisation. The Notar prepares and certifies the Gesellschaftsvertrag.
Every person named in the founding documents must appear in person OR provide a notarised power of attorney.
Read every clause. The articles define profit distribution, voting rights, and exit rules.
All shareholders sign. The Notar witnesses and stamps. This is the moment the company is legally founded.
Notar fees are set by law (GNotKG). For a €25K GmbH: approx. EUR 600–800. Using the standard Musterprotokoll is cheaper than a custom Gesellschaftsvertrag for simple structures.
Best banks for expat founders (2026): Qonto and FYRST are most popular — digital, English support, fast. Traditional banks (Sparkasse, Commerzbank) are slower. Avoid N26 Business — it does not support GmbH/UG accounts.
Required for most business activities. Form 'Gewerbeanmeldung'. Cost: EUR 20–60.
Business tax registration questionnaire — since 2021 must be submitted via ELSTER online. Steuernummer in 2–6 weeks.
Turnover above €22,000/yr: must register for VAT. Below: can use Kleinunternehmerregelung (but cannot reclaim input VAT).
Required for B2B invoicing within the EU. Apply via bundeszentralamt.de — takes 2–4 weeks.
Handles Jahresabschluss, corporate tax returns, and compliance. Monthly cost: EUR 100–400. Strongly recommended.
Submit the Fragebogen within 4 weeks of starting business activity. Missing this can result in estimated tax assessments and penalties.
| Item | GmbH | UG |
|---|---|---|
| Stammkapital (minimum) | €25,000 | €1–€500 |
| Notar — Musterprotokoll | EUR 600–800 | EUR 200–400 |
| Handelsregister fee | EUR 150–300 | EUR 100–150 |
| Gewerbeanmeldung | EUR 20–60 | EUR 20–60 |
| Steuerberater (monthly) | EUR 150–400 | EUR 100–250 |
| Virtual office (if needed) | EUR 30–100/mo | EUR 30–100/mo |
| Total setup cost (excl. capital) | ~EUR 1,000–1,500 | EUR 500–1,000 |
| Week | Milestone |
|---|---|
| Week 1 | Choose structure, pick name, draft articles, book Notar |
| Week 2 | Notar appointment — sign founding documents |
| Week 2–3 | Open business bank account, deposit Stammkapital |
| Week 3 | Notar submits Handelsregister application |
| Week 4–6 | Handelsregister entry confirmed — company legally registered |
| Week 5–8 | Gewerbeanmeldung, USt-IdNr, ELSTER setup |
| Week 8+ | Fully operational — issue first invoices |