Founding a Company
Founding a company in Düsseldorf offers businesses extensive opportunities to gain a solid foothold in the German and European markets.
A GmbH (limited liability company) is the company structure most often chosen by international company founders. It combines a clearly structured process for founding the company with limitations on liability, making it a good choice for companies that plan to operate both locally and internationally.
This page provides an overview of the most important aspects involved in founding a company.
- Steps for founding a GmbH
1. Develop a business concept
- Analyse the German market to identify business opportunities. Visit trade fairs and networking events, and research potential customers and business partners.
- Create a detailed business plan based on your insights. Your business plan should map out your company objectives, strategies and budget.
2. Clarify the legal framework- Make an appointment with a law firm or tax consultancy to clarify the most important legal and tax questions, such as:
- Company structure: is a GmbH the best option for your business?
- Shareholder structure: clarify who holds the shares and determine partners’ responsibilities.
- Management: assemble a management team and clarify any powers of representation, if necessary.
- Review the residence permit requirements for managers and employees and make sure that these requirements are met.
- Have a law firm review any relevant trademarks or industrial property rights in order to protect your intellectual property in Germany.
3. Prepare the documents to found your company- Collect the required documents:
- Shareholder documents: information about all shareholders (natural persons or companies).
- Business objective: description of planned business activities.
- Management: names and personal data of management.
Note:
Please make sure to plan enough time to have your company’s documents translated, certified and authenticated.4. Open a bank account- Contact a bank of your choosing at an early stage in the process; each bank’s requirements may vary. The most important documents generally include:
- Ownership structure: transparent account of all shareholders.
- Proof of capital: proof of the source of the capital invested in the company (bank statements, financial reports, etc.).
- Opening a business account is an important step, as the GmbH’s initial capital will need to be paid into this account before the company can be entered into the commercial register.
- Registering your GmbH
Draft the articles of association for your company and have them certified
- Draft your GmbH’s articles of association (charter) with the help of a law firm or tax consultancy.
- Have your articles of association notarised. For this purpose:
- Your managing director must be present.
- A proxy with a notarised power of attorney can stand in for a shareholder.
Open a business account- Set up a business account at a German or international bank.
- As soon as the account is open, deposit the company’s initial capital (minimum EUR 25,000 when founding a GmbH).
Note:
It may take the bank some time to review your documents. - Formalities after registration
Entry into the commercial register
- After certification by a notary, your GmbH will be entered into the Handelsregister (commercial register). This is a required step and must be completed before your business can launch operations.
Business registration- Register your company with the Gewerbemeldeamt (trade registration office, German only).
Apply for a Betriebsnummer (company number)- Contact the competent authority(German only) to apply for a company number. This number is required for registering employees for social insurance, among other things.
Tax registration- Wait to receive documents from the Finanzamt (tax office), such as your Steuer-ID (tax ID) and ‘Fragebogen zur steuerlichen Erfassung’ (tax assessment survey).
- To avoid delays, work with your tax consultant to respond to questions from the tax office as quickly as possible.