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Consult with legal and business professional for establishing startup company

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Consult with legal and business professional for establishing startup company

Shareholders: A GmbH requires at least one shareholder (individual or legal entity). The shareholders can be German residents or foreigners.


Minimum Capital: The minimum share capital required to establish a GmbH in Germany is €25,000. This capital can be contributed in cash, assets, or a combination of both.



Articles of Association: For Establishment of a Gmbh, you need to draft Articles of Association (Gesellschaftsvertrag) outlining the company's name, purpose, registered office, share capital, shareholders' details, management structure, and other relevant provisions. The Articles of Association must be notarized.


Notary and Registration: The notarized Articles of Association, along with other required documents (such as proof of share capital deposit and identification of shareholders), need to be submitted to the local trade office (Gewerbeamt) or the commercial register (Handelsregister). Once registered, the GmbH becomes a legal entity.


Liability: Shareholders of a GmbH have limited liability, which means their personal assets are generally protected from the company's debts and liabilities. However, in certain circumstances, such as wrongful trading or personal guarantees, shareholders can be held personally liable.


AG (Aktiengesellschaft): An AG is a form of a joint-stock company commonly found in Germany and some other countries. Here's an overview of establishing an AG.


Shareholders: An AG requires at least one shareholder (individual or legal entity). The shareholders can be German residents or foreigners.


Minimum Capital: The minimum share capital required to establish an AG in Germany is €50,000. The capital must be divided into shares, and each share must have a nominal value.


Articles of Association: Similar to a GmbH, Establishment of an Ag needs to have Articles of Association (Satzung) that outline the company's name, purpose, registered office, share capital, shareholders' details, management structure, and other relevant provisions. The Articles of Association must be notarized.


Notary and Registration: The notarized Articles of Association, along with other required documents (such as proof of share capital deposit and identification of shareholders), need to be submitted to the commercial register (Handelsregister). Once registered, the AG becomes a legal entity.


Liability: Shareholders of an AG also have limited liability, similar to a GmbH, meaning their personal assets are generally protected from the company's debts and liabilities. However, exceptions exist, such as in cases of fraudulent or improper behavior.


Final Words: It's important to consult with legal and business professionals familiar with the local regulations and requirements when establishing a GmbH or AG, as specific procedures and regulations may vary depending on the jurisdiction.


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