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Incorporation in Germany: Highlights

•    The most frequent type of entity formed in Germany – LLC (or GmbH) can be 100% foreign owned;

•    LLC’s in Germany requires a minimum of i) one director and ii) one shareholder.

•    The minimum paid up share capital €25,000;

•    With the guidance of our Healy Consultants’ experts, the process of incorporation can take only three weeks;

•    Corporate bank account can be opened in two weeks;

•    For successful business setup, entrepreneurs still have to: i) personally travel to Germany and ii) submit office space lease contract to obtain visa status;

•    Germany corporate tax averages around 30%, payable at a two-level system – federal level, fixed at 16% and municipal level with rate ranging between 7-17%.

•    There are two VAT regimes in Germany. Low 7% rate, applicable for everyday items like food, medicine, etc. and high 19% VAT rate for everything else;

•    Company setup in Germany suffers withholding tax of 26%, but having vast 90 Double-Tax Agreements, this number can be decreased between 5 and 15%;

•    Progressive personal taxes are levied between 0 and 45%, depending on annual income. For income up to €53,000 the rate is 14%;
•    Companies in Germany benefit from no export duties with many countries listed here;

•    There are no capital or exchange controls, thus transferring funds from abroad and converting them into Euro is easy;

•    No duties on foreign goods are applicable in all four free trade zones;
•    Consequently, companies will benefit from the federal and state interest reduced loans, available for SME’s;

•    Germany is preferred place for registering Intellectual Property.  As a part of WTO’s Agreement (TRIPS), violators of IP’s are under heavy surveillance;

•    The Government aims to reduce strain on businesses by providing four labour-related incentive programs;

•    Knowing that “Made in Germany” is widely recognized trademark, synonymous for quality, companies incorporating in Germany have an unspoken guarantee for international acceptance.

Contact:
Aidan Healy
Business Owner
Healy Consultants
Chopinstrasse 27
70195
Stuttgart, Germany
Tel: (+65) 6735 0120
aidanhealy@healyconsultants.com