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Since 2008 you can found a "UG" ("Mini GmbH") that doesn't require that much upfront capital. It can be foundet with 1 Euro. The catch is that you need use 25%
by ofrzeta 3y ago
Since 2008 you can found a "UG" ("Mini GmbH") that doesn't require that much upfront capital. It can be foundet with 1 Euro. The catch is that you need use 25% of your yearly revenue until you reached the 25k of a proper GmbH.
https://www.firma.de/en/company-formation/what-is-a-ug-haftungsbeschrankt-company-in-germany-definition-and-facts/ https://www.firma.de/en/company-formation/what-is-a-ug-haftu...
- pgeorgi 3y agocorrection: 25% of the yearly profit
- ofrzeta 3y agoThanks. I never know the correct terms of revenue vs. profit :)
- pantalaimon 3y agoThe catch is also that everyone can see that you have less than 25k € in funds, so depending on what your customers are, they might not take you serious.
- Hrun0 3y agoThe registration at the notary alone already costs several hundred euros, you would be immediately bankrupt with 1€.
- jillesvangurp 3y agoExactly, there's the notary cost, the monthly banking fees, the yearly books closing and accounting related to that, chamber of commerce registration (recurring yearly as well). You also need to have a mailbox somewhere to be able to receive all the paper work. You can use your home address but it's generally not recommended and frowned upon by land lords. In my case, I burned through about 2500 euro in the first year just on stuff like that for a holding company that holds shares in my actual company. It takes about 4-5 months to get most of that behind you. Yearly running cost are about 1000 euro (accounting, recurring fees, etc.).