The GmbH is the most widespread legal form in German economics. In addition to this, the GmbH is the most preferred by foreign investors when founding a German company, and also by foreign companies when founding an entity in Germany.
To found a GmbH, at least one founding shareholder is required, who is either a natural or legal person, but it can also be another legally capable company (e.g. OHG, KG). The person can be based in Germany or outside of it.
The nominal capital required for founding is at least 25,000 Euro. An alternative to this is an asset-based founding, whereby the contributed economic goods (real estate, company shares, machines etc.) must also have a common value of at least 25,000 Euro.
The following steps are required for founding a GmbH, whereby the company’s location must be in Germany:
Total costs for founding a GmbH are generally between 1,200 and 2,000 Euro.
A GmbH must have one or more managers (Geschaeftsfuehrer), whereby only natural persons with unlimited legal capacity may be appointed as managers. The manager may be based in Germany or in another country.
For obligations which arise before the company contract was certified, the founders shall be personally liable as joint debtors.
After entry into the Companies Register, outside liability for obligations is basically limited to the company assets of the GmbH.