Company formation in Germany
Your business in Germany
A structured start in Europe
Why establish a company in Germany?
Germany’s central European location, transport and business infrastructure, and skilled workforce can make it a practical base for developing activities in Germany and other European markets.
A German company can form part of the business arrangements for an owner or employees coming to Germany. However, company formation and immigration permission are separate matters: registering a company does not itself grant a right to live or work in Germany.
A self-employed entrepreneur may qualify for a settlement permit after three years if the business and livelihood requirements are met. This is not the EU Blue Card, which concerns qualifying employment. The relevant authority assesses the individual application.
The GmbH formation process
A limited liability company (Gesellschaft mit beschränkter Haftung — GmbH) is a commonly used company form for international investors. It is a separate legal entity and generally answers for its obligations with its own assets. Personal liability and unpaid-capital obligations can still arise in particular circumstances.
The process usually includes:
- Business structure: choose the company name, German business address, business activities, shareholders and managing director(s). Clarify the articles of association, management arrangements and any sector-specific permissions.
- Business and finance planning: prepare the business concept, financing and relevant supporting documents. A business plan may also be important for a separate residence application; the chamber of commerce may be consulted on relevant issues.
- Notarial formation: coordinate the required documents and notarisation with a German notary. The applicable personal-appearance, representation or permitted online procedure should be confirmed for the individual case.
- Bank account and capital: open the company bank account and contribute the required share capital. A GmbH has minimum share capital of €25,000; for a standard cash formation, at least €12,500 in total must be paid before commercial-register registration, with the requirements for each share also observed. Outstanding contribution obligations remain.
- Registration: arrange commercial-register registration through the notary, trade registration and tax registration. A VAT identification number, opening balance sheet and further registrations may be needed depending on the business.
- Start operations: organise accounting, required insurance and permissions, and any separately required visa or residence application.
Official company-formation overview: Germany Trade & Invest.
Formation and ongoing costs
Formation costs include notarial work, commercial-register and other registration fees, and any legal, tax, translation or advisory support. A straightforward one-person GmbH formation with €25,000 share capital may have notary costs below €1,000, but the actual amount depends on the structure and work involved. Travel, visa and accommodation costs may also arise.
After formation, budget for bookkeeping, VAT returns where required, annual accounts and tax filings, alongside banking, insurance and other operating expenses. Tax-adviser fees depend on turnover, records and the work commissioned; obtain a current quote rather than treating a general annual estimate as a fixed price.
We can help coordinate relevant professional support and discuss insurance and tax-planning questions with the appropriate advisers. The scope and charges are agreed individually. IHK information on notarial formation costs.
German visas and residence
Plan the company
and the residence requirements
Which permission fits your plans?
Planning to manage a business, transfer employees or take up a qualified job in Germany? Different activities require different immigration permissions. Common routes include residence for self-employment, an intra-corporate transfer (ICT), a short business visit and the EU Blue Card.
Which route is suitable depends on the actual work, the company structure, the applicant’s qualifications and the planned duration. Company formation and permission to live or work in Germany are separate procedures. We help organise the information and preparation relevant to your plans.
Residence for self-employment
A residence permit for self-employment is assessed separately from company registration. The authorities examine the business proposal, its economic relevance and financing; incorporation alone does not establish eligibility.
Preparation may include personal and qualification documents, company information, a business plan and financial projections. The business plan should explain the activity, market, competition, marketing, investment needs, financing and expected development. The immigration authority may involve relevant local bodies, including the chamber of commerce, in its assessment.
Our agreed support can cover organising the application information and coordinating the relevant steps before and after arrival. The required documents, appointments and entry permission must be checked with the responsible German mission and local immigration authority.
Continued residence and permanent settlement require their own conditions to be met. A settlement permit is different from an EU Blue Card. Official information on self-employment.
ICT transfers, business visits and the EU Blue Card
Intra-corporate transfer (ICT). This route concerns temporary transfers of managers, specialists or graduate trainees within the same company or group to Germany. Under section 19 of the Residence Act, prior group employment of at least six months and a transfer exceeding 90 days are among the requirements. The maximum duration is three years for managers and specialists, or one year for trainees. Employment terms, qualifications and any required approvals also need to be checked. An ICT Card does not automatically convert into permanent residence.
Short business visits. Meetings and other permitted business visits must be distinguished from taking up employment or operating a business in Germany. Check the intended activity, entry requirements and permitted duration before travelling.
EU Blue Card. This is a separate residence title for qualifying employment. A suitable job offer, the applicable qualification and salary conditions, and other requirements must be met. Different rules may apply to some IT professionals. A later settlement permit depends on the relevant employment, contribution, language and other conditions; it is not automatic.
Insurance, social-security and tax obligations need individual assessment; a visa category alone does not establish a fixed payroll-cost saving. See section 19: ICT Card and official EU Blue Card information.