What Are The Requirements For Setting up A Company In Germany?
Ranging from Small conglomerates to large corporations, Germany is home to thousands of business opportunities. You might be wondering how to start your own business in Germany, and you must be worried about the procedure. But, believe us it doesn’t take a rocket science to set up the business organisation in Germany.
In this guide, we are going to cover the entire procedure of setting up a company in Germany.
The entire process of forming a company in Germany starts by opening a bank account. After that, you need to get a visa and a residency permit. Next, you need to visit the tax office where you can register yourself for starting a business in Germany. In multiple scenarios, you may need to obtain a trading license before getting your business registered in the tax office.
Why You Should Not Overlook German Regulations?
Always keep in mind that German law is very strict regarding working hours, the safety of a worker, accountancy, and hygiene. So, if you wish to set up any food business in the country, it is necessary to complete mandatory safety courses and must ensure that all the facilities are as per national standards.
How Much Will It Cost To Start Your Business In Germany?
Generally, the cost varies for opening a business in Germany. Different type of business requires a different amount of investment, however, the cost of actual administration is not too high. On an average you need to pay EUR 400 as a company registration cost. Also, setting Up a GmbH in Germany requires the investment of EUR 25,000 in seed capital.
If you do not wish to invest this much, you can always start with a mini-GmbH as it is much cheaper than Gmbh and the initial investment is EUR 1 only.
Can A Foreigner Open A Company In Germany?
Germany always welcomes foreign entrepreneurs for starting a business in the country. However, you need to keep in mind a few special considerations.
1. Get a Business Visa for Germany – This means your stay in Germany is safe for 6 months. It needs proof of your health insurance, residence information, and finance.
2. Complete business registration – You need to register your company. For this, you need a residence permit, a working bank account, a visa, your German tax ID number, and your current passport.
3. Get a trade license – Before business registration, you need to obtain your trade license number. This requires a fee of EUR 20.
4. Update your health insurance – You should update your health insurance provider in Germany about your business, as this can affect your payment structure.
To wrap it up
German laws are strict in approach and there is no bending of the rules anywhere. Therefore, it is important to always keep in mind the core aspects of starting a business in Germany and soon you will be a great entrepreneur.
