Frequently Asked Questions
Answers to the most important questions about German business law
Company Formation in Germany
Total costs range between €1,500 and €3,000. This includes notary fees (approx. €500-1,000), commercial register fees (€150), chamber of commerce dues, and potentially attorney fees. Minimum share capital is €25,000 (€12,500 to be paid at formation). A UG can be formed with just €1 capital.
GmbH formation typically takes 2 to 4 weeks. This includes document preparation, notary appointment, commercial register entry, and trade registration. With a model protocol it can be faster.
Yes, foreigners (EU and non-EU) can form a GmbH. There is no residency requirement for shareholders. However, at least one managing director should be reachable from Germany. For non-EU citizens, a residence permit may be required.
Holding Companies
A German holding benefits from 95% tax exemption on dividends and capital gains under §8b KStG. The effective tax burden is only about 1.5% instead of 30%. It also provides liability separation and facilitates succession planning and M&A transactions.
Minimum share capital is €25,000, of which at least €12,500 must be paid at formation. For holdings with larger participations, higher capital is often recommended to meet substance requirements.
Crypto & BaFin Licensing
Mainly the crypto custody license under §1(1a) KWG and soon the MiCA-CASP authorization. Germany was the first EU country with crypto regulation in 2020. The MiCA regulation has been fully applicable since December 2024.
The BaFin approval process typically takes 6 to 12 months. The preparation phase (business plan, compliance structures) can take another 2-4 months. Incomplete applications significantly extend the process.
Total costs range from €100,000-300,000. This includes BaFin fees (€10,000-50,000), legal advisory (€50,000-150,000), IT infrastructure, and ongoing compliance costs. Minimum capital is €125,000.
Residence Permits & Immigration
The EU Blue Card is a residence permit for highly qualified third-country nationals with a university degree and an employment contract with minimum salary (2024: €45,300, shortage occupations €41,042). It enables settlement permit after 21-33 months.
Yes, with the entrepreneur visa under §21 AufenthG, third-country nationals can establish a business in Germany. Requirements include a viable business plan, secured financing, and economic interest for Germany.
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