Incorporate · Europe

Company Formation in Germany

Largest EU economy with a credible corporate framework and vast treaty network. Review the legal form, tax position, treaty network and indicative cost, then talk to one team that structures it end to end.

Licensed CSP
50+ yrs combined experience
15+ jurisdictions

Corporate tax: Approx. 30% combined
VAT / GST: 19%
Formation: 2-4 weeks
Foreign ownership: 100% permitted
Tax treaties: 95+
Setup cost: USD 3,000 - 8,000

At a glance

Common entity: Limited Liability Company (GmbH)
Formation time: 2-4 weeks
Setup cost: USD 3,000 - 8,000
Annual cost: USD 3,000 - 8,000
Foreign ownership: 100% permitted
Tax treaties: 95+

TradingManufacturingHolding companyConsulting and servicesE-commerce

Best for

Access to the largest EU consumer market
Manufacturing and industrial operations
Credible German trading entity for B2B customers

Less ideal for

Founders wanting low headline tax
Ultra-fast same-week setups

Legal and formation

Legal system	Civil law
Common entity types	Limited Liability Company (GmbH), Entrepreneurial Company (UG)
Formation timeline	2-4 weeks
Minimum capital	EUR 25,000 (GmbH; UG from EUR 1)
Foreign ownership	100% permitted
Minimum shareholders	1
Minimum directors	1 (managing director / Geschaftsfuhrer)
Local presence	Registered office in Germany required
Public registry	Directors, shareholders and beneficial owners on the commercial and transparency registers
Audit	Audit required for medium and large companies

Tax profile

Corporate income tax	Approx. 30% combined (15% corporate income tax plus solidarity surcharge and municipal trade tax; trade tax varies by municipality)
VAT / GST	19%
Withholding, dividends	25% plus solidarity surcharge (treaty and EU reduced)
Withholding, interest	0% in most cases
Withholding, royalties	15% plus solidarity surcharge (treaty reduced)
Capital gains	Within corporate tax; roughly 95% exemption on qualifying corporate shareholdings
Territorial system	No
CFC rules	Yes
Participation exemption	About 95% of dividends and gains from qualifying shareholdings are tax exempt

Every figure above is indicative. Rates, thresholds, minimum capital, ownership rules and timelines change and vary by activity, licence and structure. They are confirmed with the relevant authority and in a tailored quote before you rely on them. This is general information, not legal or tax advice.

How to set up in Germany

1
Reserve the company name and confirm the business purpose
2
Draft and notarise the articles of association before a German notary
3
Deposit the share capital into a blocked account and appoint a managing director
4
Register with the commercial register (Handelsregister) and the transparency register
5
Register with the tax office and trade office, then open a full corporate bank account

Banking reality

German banks apply thorough KYC and often prefer at least one locally resident director, so onboarding can be slow for wholly foreign-owned entities; EMIs and fintech banks help bridge the gap during setup.