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Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis
~87 days
Setup Time
~$1,125
Setup Cost
30%
Corporate Tax
100%
Foreign Ownership
#22
Ease of Business
| Entity | Min Capital | Foreign % | Liability | Min Shareholders | Best For |
|---|---|---|---|---|---|
GmbH Gesellschaft mit beschränkter Haftung | 25,000 EUR | 100% | Limited | 1 | Standard entity — most credible and common for foreign investors |
UG (Mini-GmbH) Unternehmergesellschaft | 1 EUR | 100% | Limited | 1 | Startup-friendly GmbH — €1 capital, must retain 25% of profits until €25K reached |
AG Aktiengesellschaft | 50,000 EUR | 100% | Limited | 1 | Large companies, IPO candidates, institutional investors |
Branch Office (Zweigniederlassung) | None | 100% | Unlimited | 0 | Foreign company extension — registered at local court |
Notarize Articles of Association
Gesellschaftsvertrag must be notarized by German notary
1-3 days
~$800
Notary Public
Open Business Bank Account
Deposit minimum share capital (€25K for GmbH, €1 for UG)
3-14 days
Free
Commercial Bank
Register in Commercial Register
Filed through notary at local court (Handelsregister)
7-30 days
~$300
Amtsgericht (Local Court)
Register with Tax Office
Obtain tax number (Steuernummer) and VAT ID from Finanzamt
7-30 days
Free
Finanzamt
Register with Trade Office
Gewerbeanmeldung at local Gewerbeamt
1-3 days
~$25
Gewerbeamt
Register for Social Insurance
Register employees with statutory health, pension, unemployment
3-7 days
Free
Social Insurance Carriers
$2200/mo
Minimum Wage
$4200/mo
Average Wage
40 hrs/week
Work Hours
20 days/year
Paid Leave
2 weeks/year
Severance
20.8% of salary
Employer Social Security
20.2% of salary
Employee Social Security
Required
Foreign Worker Permit
Foreign Worker Quota: EU citizens: free access. Non-EU: Blue Card for skilled workers (€45.3K+ salary) or ICT permit.
#22/190
Ease of Business Rank
8 days
Starting a Business
52 days
Registering Property
499 days
Enforcing Contracts
78/100
Corruption Perception
93%
Internet Penetration
EUR
Currency
UTC+1
Time Zone
20
Retail (months)
16
F&B (months)
14
Tech (months)
28
Manufacturing (months)
12
Services (months)