Establishment of a Ltd in Germany – known how

If the company is self-employed or if a start-up is to be established with business partners, the first step besides a business plan is always the choice of the legal form. This is largely dependent on expected revenues, the need for employees, and the flow of capital. The English Limited is a frequently used choice because it is considerably “looser” in its regulations than the equivalents from Germany.

So the establishment of an Ltd is also legally effective in Germany

The Establishment of an Ltd is possible from Germany, whereby the identical legislation applies here as in the case of a foundation in Great Britain. It counts as a corporation and, unlike, for example, a limited liability company, requires only 1 Euro starting capital. The German equivalent to the Limited is the UG (Entrepreneur Company). In the case of the Limited, however, a notary is not due by a notary, but must first be registered in the English company register.

This entry must be accompanied by a valid address in the UK, where only 1-room offices or mailboxes are often chosen due to the low rental costs. If the company’s head office is located in Germany, a business registration must be compulsory, in addition an entry must also be made in the commercial register. The name of the company can be freely chosen afterwards, but the “Limited” add-on at the end of the company name must always be kept, similar to a GmbH or AG. In addition, the positions are mandatory:

• Company Secretary
• Shareholders’ Meeting
• Director

Establishment of an Ltd is worthwhile especially for start ups

It may be necessary to include an auditor at the end of the financial year as the annual accounts must be carried out according to English accounting. If there are legal disputes or ambiguities, lawyers from Great Britain should always be asked to clarify the matter. These can, of course, also be taxed. If the primary business of a Limited is in Germany, tax in Germany must also be paid. The likely primary business must be specified at or shortly after the Establishment of an Ltd . IHK contributions are of course also due. The shareholders’ agreement submitted at the time of incorporation does not require a written form, but must be written in English.