Founding a GmbH

GründerErwachsene

The German GmbH (limited liability company) protects your private assets. Minimum capital: €25,000. Alternative: the UG (“mini-GmbH”) from €1 share capital.

GmbH vs. UG – the difference (German limited companies):

GmbH (Gesellschaft mit beschränkter Haftung, limited liability company):

• Minimum share capital: €25,000 (at least €12,500 paid in on formation)
• Liability limited to company assets (private assets protected)
• Professional image ("GmbH" in the name)
• Corporation tax: 15% + trade tax

UG (haftungsbeschränkt) – the "mini GmbH":

• Share capital from €1 possible
• Must set aside 25% of profits until €25,000 is reached
• Then automatic conversion into a GmbH possible
• Perfect for founders with little start-up capital

Formation costs: notary (€300–500), commercial register entry (€150), trade registration (€20–60), opening balance sheet. Total: approx. €600–1,000 for a UG, approx. €1,000–2,500 for a GmbH.

Did you know? Founding takes 2–4 weeks and costs €700–1,500. The €25,000 share capital doesn't have to be paid in full immediately – €12,500 is enough.

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