LEGAL STRUCTURE ADVICE
Individuals and companies that intend to engage in commercial activity in Germany may want to look into establishing some sort of corporate entity. Companies that do not have any presence in Germany may want to designate an agent to operate on their behalf to help establish a corporation. Advice from Yan Incorporation's experts is essential in determining the best type of corporate structure.
GMBH COMPANY
The abbreviation GmbH stands for Gesellschaft mit beschränkter Haftung, which in English translates to limited liability company. The limited liability that the GmbH legal structure offers is the main reason why so many entrepreneurs choose this legal form for their businesses.
To incorporate a GmbH, you need at least € 25,000 in share capital, which can be contributed by one or more shareholders.The individual capital contributions of each shareholder do not have to be the same but can vary.
The GmbHG allows the GmbH to have one or more shareholders that are a natural or legal person, i.e. a registered association (eingetragener Verein) or a stock corporation (Aktiengesellschaft).
Yan Incorporation can take care of the formation of GmbH companies remotely. Entrepreneurs have the possibility of obtaining a permanent residency permit as director of a GmbH company.
UG  (HAFTUNGSBESCHRÄNKT)
The Unternehmergesellschaft (UG), equivalent to the English LTD, known as ‘mini-GmbH’, could also be established with a capital of only €1. This entity is most popular for new businesses as it is more flexible than the regular GmbH.
The number of shareholders for a UG is not limited. As a rule, the rights and obligations of the UG shareholders are based individually on the participation of the individual shareholders. Insofar as the rights and obligations of each shareholder are in part determined by their individual share percentage. Alternatively, the rights and obligations of each shareholder can also be individually stipulated in the articles of association (Gesellschaftsvertrag) – independent of share percentages.
​
Yan Incorporation can take care of the formation of UG companies remotely. Entrepreneurs have the possibility of obtaining a permanent residency permit as director of a UG company.
BRANCH
Any foreign company with a head office and registered business operations outside of Germany can establish a German branch office. A branch office is a suitable business form for a foreign company wanting to establish a presence in Germany for the purpose of initiating business and maintaining contacts with business partners.
A branch office has no independent or separate legal personality distinct from the head office itself. In legal and organizational terms, it is part of the head office business and is thus subject to the law governing the head office. In this context, the foreign head office company is fully liable to the extent of its own assets for any claims creditors might assert against the branch office. Any obligations or debts incurred by the branch office are also legal responsibility of the foreign company.
Yan Incorporation can take care of the formation of Branch in Germany. Entrepreneurs have the possibility of obtaining a permanent residency to work for their branch.
YAN INCORPORATION SERVICES
Company formation in Germany is generally a straightforward process, including a number of formalities that have to be performed. Yan Incorporation can help you with the formation of a company in German within 2-5 days.
