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Germany company formation

Navigating the different form of businesses in Germany can be arduous. Yan Incorporation created an easy-to-read table containing all the necessary information for a smooth registration and journey into the market.

Today’s article is the start of a long series of content aimed at explaining the differences between the types of German structures. Without further introduction, here it is our summary knowledge for starting a corporation (Kapitalgesellschaften) in Germany:

Difference between GmbH and UG (or mini-GmbH or 1-Euro-GmbH)

As it can be understood from the table, UG takes the characteristics of a GmbH while requiring lower standards. This type of corporation is especially liked by beginners and individuals who would like to limit their risks.

Still puzzled on which category would fit you best? Send an email at:

Bonus tip

With the basics covered, we would like to add details and context to what above. The determination of your company structure imposes the type of responsibilities and legal obligations you are under.

Important to mention is that the process is significantly laborious and therefore requires patience and diligence. The bureaucratic hurdle is one of the many barriers to entry for new entrepreneurs. After all, the system has multiple key entities involved as well as paper trails to ensure fool proof procedures. Prior to the documentation groundwork and beyond business structures, a businessperson must create a detailed business plan. The document is mandatory for obtaining a bank account and/or government support.

Would you like to register a company? Yan Incorporation has the specialists you need.

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