Seven Objects To-do When Forming A Company In Germany

Feb 14, 2018 | Publisher: Payroll Services Germany | Category: Other |  

Seven Objects To-do When Forming A Company In Germany Tel: +49 (0) 2173 / 2039568, Fax: +49 (0) 2173 / 206963 mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany Home to thousands of businesses, Germany houses a large number of small sole proprietorships as well as large conglomerates. The German government is very open to all types of business and this is one of the biggest reasons for t he prominence of Germany's economy on the world stage. If you are Forming a GmbH in Germany, Germany c reates a friendly environment and the laws are clear ly laid down for everything. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany If you want to be the part of this booming econom y, here are 7 things to keep in mind while Forming a company in Germany. 1. Decide On The Format Of The Company Yo u Want To Form 2. Register Yourself 3. Get An Imprint 4. Hire A German Representative 5. Appoint A Good Tax Consultant 6. Financial Planning 7. Build A Professional Network Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany 1. Decide On The Format Of The Company You Want To Form Most of the businesses in Germany are formed eith er as a GmbH which is similar to a limited company or as a partnership. The foremost question you need to ask yourself is h ow much you want to be involved and do you wish t o take a risk of being personally liable? Unless you already have some business set up in Ge rmany, it is strongly recommended to go for GmbH business. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany In order to form a GmbH, you need a minimum capi tal requirement of 25,000 Euros at least half of whic h needs to be paid at the time of the formation. This gives an impression of you being a stable invest or and hence gain you credibility and stable busines s prospects. While you can open a "small GmbH" in Germany (U G), this is generally seen as untrustworthy. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany 2. Register Yourself You need to register your business with the tax offic e, the chamber of commerce and the commercial re gister. This is very important especially in B2B becau se they can look you up on www.unternehmensregi ster.de to check if you are a trustworthy and a credi ble business. The notary setting up the business will register you in commercial register. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany 3. Get An Imprint As per German law, you need to list many details of the company on your commercial website. Failure to obey these requirements can get you in a lot of trouble as there are thousands of Euros of fin es involved for breach of fair competition laws. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany 4. Hire A German Representative This is extremely important in the earlier phase of y our business if you hail from a different country. Hiri ng a German Representative who can act as a direct or or an authorized representative. This would mak e your life easier in terms of banks, courts, tax laws etc. This would also help you have more credibility i n the start of your business. The best way to do this is having a German partner. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany 5. Appoint A Good Tax Consultant It is said that almost 70 percent of all the tax literatu re in the world is published in Germany. If you try to do it all by yourself, you would probably lose your m ind in filling all those forms and would have no time whatsoever to do the most important thing that is r un your business. Find yourself a tax consultant who knows about international tax law as well. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany 6. Financial Planning This is universally accepted fact that Cash is the lifeb lood of any business even more than profits. It is therefore a must to have a cash flow forecast in place for your business. Make sure to have a minimum of 3 to 6 months of r eliable cash flow visibility for your company. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany You can also hire an experienced financial expert to do the job. There may be dozens of potential costs that you ma y not think of such as local license tax, corporate tax advance payments, social security deductions and many more. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com Seven Objects To-do When Forming A Company In Germany 7. Build A Professional Network Well something of an unsaid yet the most importan t one. Make friends. Yes a lot of them. The Chamber of Commerce and its regular seminars and informati on events can be a good start. It is a great place to not only just meet other entrepreneurs but also tax advisers, accountants, lawyers, and specialist consul tants. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com

Germany houses a large number of small sole proprietorships as well as large conglomerates. The German government is very open to all types of business and this is one of the biggest reasons for the prominence of Germany’s economy on the world stage. If you are Forming a GmbH in Germany, Germany creates a friendly environment and the laws are clearly laid down for everything. If you want to be the part of this booming economy, here are 7 things to keep in mind while Forming a company in Germany.

 

Decide On The Format Of The Company You Want To Form

 

Most of the businesses in Germany are formed either as a GmbH which is similar to a limited company or as a partnership. This gives an impression of you being a stable investor and hence gain you credibility and stable business prospects.

 

Register Yourself

 

Get An Imprint

 

Hire A German Representative

 

Appoint A Good Tax Consultant

 

Financial Planning

 

You can hire an experienced financial expert to do the job. There may be dozens of potential costs that you may not think of such as local license tax, corporate tax advance payments, social security deductions and many more.

 

Build A Professional Network

 

The Chamber of Commerce and its regular seminars and information events can be a good start. It is a great place to not only just meet other entrepreneurs but also tax advisers, accountants, lawyers, and specialist consultants.

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