Even though foreign companies can make use of all types of German legal company forms, experience shows that the GmbH which is an entity with limited liability is the most sustainable for a long-term market presence in Germany and Europe.
- A GmbH is founded with mimimum share capital amounting to EUR 25,000.00. The business community has more trust in a GmbH than for example, the UG which only requires a minimum share capital of EUR 1.00.
- Essentially, the General Manager (Geschäftsführer) of a GmbH can have any nationality and reside anywhere in the world. In fact, the appointed manager does not have to b e a German citizen or have German residency.
- Similarly, the shareholder of the GmbH – whether a company or natural person – can be located worldwide.
In practice, though, the key to a smooth implementation of the subsidiary is made easier by local contacts or employees with a knowledge of German. Good contacts to banks for the set-up process have proved to be invaluable.