GmbH and UG in Formation
What is a GmbH?
The limited liability company, with the abbreviation GmbH, belongs to the group of corporations just like the stock corporation. This legal form enjoys a hi...
For whom is a GmbH suitable?
One of the main advantages is that the liability is limited to the assets of the company. This legal form is subject to strict accounting obligations and th...
Does a GmbH need a share capital and what has to be considered?
Yes. The minimum share capital is €25,000. At least half of this amount, i.e. €12,500, must be paid in at the time of formation. If there are several partne...
When is the second half of the GmbH's share capital due?
The remaining contribution is due if this is stipulated in the articles of association or if the shareholders' meeting so decides. The company then dem...
How is the liability of a GmbH regulated?
For the liability of your GmbH the GmbH law applies. Towards creditors the GmbH is usually only liable with its corporate assets. You as a partner are u...
What accounting obligations does a GmbH have?
The accounting is subject to the provisions of the German Commercial Code (HGB). The GmbH is obliged to the legal double-entry bookkeeping with an annual ba...
What taxes must a GmbH pay?
A GmbH must pay trade tax, corporate income tax and solidarity surcharge. If profits are distributed to the shareholders, capital gains tax is due for them....
What is the difference between UG and GmbH?
Both the corporate form UG and the GmbH are considered as limited liability companies and are similar in many respects. Probably the most important differen...
What is to be considered with the conversion of UG into a GmbH?
In order to convert a UG into a GmbH, it is necessary to increase the share capital to the statutory minimum limit of €25,000. However, the share capita...
Does the UG have to be converted into a GmbH?
No. The company is free to change its name to a "normal" GmbH or to retain the designation as an "Unternehmergesellschaft" (UG). You...