German Trade Register

February 18, 2023
Registrationwala

German Trade Register

February 18, 2023

Registrationwala

Why must Businesses opt for Company Registration in Germany?

Germany is the powerhouse nation of the entire Western Europe. It drives the continent's economy and is also termed the most populous nation on the European plate. But lately, we have seen an upsurge in the investments from foreign lands for company registration in the Deutschland. Such a surge can be attributed to the enormous size of the industrialized German economy, as well as the vast amount of available workforce. In this article, we have detailed to you the requisite procedure for Company Registration in Germany with the German Trade Registry, as enlisted in the following pointers:

Choosing an appropriate Business Structure for the proposed Company
Reserving an appropriate Trade Name for the proposed Company
Draft the Company Deed for the Authority
Register for a Corporate Bank Account for the newly incorporated Company
Stammkapital, i.e., Deposit the requisite corporate capital in Company's Corporate Account
Paying Notary for Invoice Execution
Obtain the other Business Licenses for running the undertaken commercial activities

Let us look at each of these steps in detail.

Choosing an appropriate Business Structure for the proposed Company

As for different business structures available in Germany, the company applicant must choose the business structure of his choice to register with the German Trade Registry in Deutschland. The most common of all business structures adopted by foreign nationals is the Limited Liability Company (LLC).

Such businesses require a minimum of EUR 25,000 as their share capital. Therefore, the incorporation applicant must adopt other business structures requiring less capital per German Corporate Laws. Also, he must choose a business structure per the nature of the business activities it intends to undertake.

Reserving an appropriate Trade Name in the German Trade Register

The next step for Company Registration is choosing and reserving a trading name for the Company. The applicant must check the chosen name with the Handelsregister, the German commercial register. If the chosen name is taken, the applicant must choose a different unique name. Keep in mind that the chosen name cannot infringe on an already registered Corporate entity in Germany.

Draft the Company Deed for the Germany Business Registry

Next, the incorporation applicant must formulate the requisite Deed of the Company Formation in Germany. The Agreement must be drafted and executed before a registered Notary. The founders of the proposed Company must provide the required documents to the Authorities with their digital signatures, such as:

Article of Association
Proof of Identity of first-time Directors

Register for a Corporate Bank Account for the newly incorporated Company

There are various forms of notaries available in Germany. Each of such German notaries has different forms of jurisdiction and is very particular about the Bank in which the Company must open its corporate Account. Therefore, the proposed Company must find a competent Bank present in the list of accepted financial institutions by the dignified Notary.

Stammkapital, i.e., Deposit the requisite corporate capital in Company's Corporate Account

After opening the corporate Account, the Company must deposit some amount of capital for the company formation process and put the Stammkapital number for further reference. Once the capital deposition is done, the registration applicant must ensure that the deposit receipt is shared with the Notary to make the procedure official.

Paying Notary for Invoice Execution

Thereafter, the applicant must make a payment to the Notary to execute the payment of the Handelsregister Invoice. Such a step is redundant if the Notary itself has carried out the required step. Accordingly, it will notify the applicant after the Company Registration formalities in Germany as per the Germany Trade Register Laws. Once the Authority completes the incorporation procedure, the Notary will further issue a notification to enter the Company officially into the commercial register of the German Authority.

Obtain the other Business Licenses for running the undertaken Commercial Activities

The Company must arrange for specific permits from the German Authorities as per the type of commercial activity it undertakes. Without these business permits, the Company cannot begin entirely in the German market.

To learn more about how to register a company in Germany online, connect with the Incorporation Experts at Registrationwala.

German Trade Register