Company formation in Germany
Company formation in Germany
Germany’s relatively high corporate tax rates, complex tax legislation and high incorporation costs make company formation in Germany a less attractive option for national and international entrepreneurs. However, this European economic powerhouse offers a number of incentives and tax concessions to support the formation of the German company. The following information will help you determine whether Company Formation in Germany is the optimal business solution to meet your business goals and objectives.
- A German limited liability company (GmbH), the most popular company type in Germany, requires only one shareholder and director.
- Germany has one of the most developed economies in the world, supported by an advanced legal and world-class banking infrastructure.
- Germany has signed double taxation agreements with more than 75 countries worldwide. These treaties provide for exemption from withholding tax on dividends, royalties and interest. These company formation agreements in Germany follow the Organization for Economic Development and Cooperation (OECD) model.
- The federal government provides a wide range of incentive programs, including loans and grants, depending on the nature of the business and its intended location. Some regions in Germany offer capital investment grants of up to 50% for small and medium-sized enterprises. Local government incentives can also be offered in the form of preferential tax rates, but these are usually not available in large cities.
- There is an abundant supply of highly skilled and experienced professionals in most regions of Germany to support our clients’ German company formation plans.
- Germany is positively ranked as the 14th least corrupt country in the world, according to the 2009 Corruption Perceptions Index by Transparency International, a global measure of corruption among public officials and politicians.
- Germany is ranked 7th by the World Economic Forum in its Global Competitiveness Report, one of the world’s most comprehensive and respected assessments of countries’ competitiveness, offering invaluable insights into the policies, institutions and factors that drive productivity.
- The ranking takes into account factors including government efficiency, business efficiency, economic performance and infrastructure.
- The index bases its ranking on factors such as housing quality, urban scale and crime, and the quality of education and health services.
Contact form Germany
Contact us on tel. +45 70231422, or email kgn@kgn.dk, or the contact form below, and get detailed advice on Company Formation in Germany
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