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GmbH/UG
We are happy to advise you on all legal issues relating to GmbHs and UGs. Our lawyers are on hand to advise you about any stage of the corporate form, including but not limited to formation, business operations, andliquidation.
The German GmbH: A Private Limited Liability Company
The German form of a private limited liability company is a form of corporate entity that can be founded by several shareholders or even a single shareholder as a so-called one-man GmbH. GmbH is an abbreviation for “Gesellschaft mit beschränkter Haftung,” which translates to “company with limited liability company.” The GmbH entity form operates similarly to a limited liability company in the United States, but there remain important differences. A GmbH requires a minimum share capital of 25,000 euros. By limiting liability to the share capital, the shareholders of a GmbH are protected from personal claims by creditors. The GmbH is the most popular form of corporation and one of the most common types of company in Germany.
There are a number of aspects to consider when founding a GmbH, such as registering with the commercial register, paying in the share capital and basic tax law aspects. Our lawyers will be happy to advise you on the opportunities and risks of founding a GmbH and provide you with comprehensive information on the numerousconsiderations..
The German UG: An Entrepreneurial Company fit for Start-Ups
The Unternehmergesellschaft (UG) is a special form of GmbH, or limited liability company, and can be a particularly advantageous corporate form for start-ups. Corporate law first introduced the UG as a form of corporate entity in 2008.
The Unternehmergesellschaft is also referred to as a “mini-GmbH”, as it is basically a GmbH with the special feature that the UG can be founded with a share capital of just€ 1.00 EUR—perfect for businesses seeking financing at the time of formation. As soon as the UG’s retained earnings have grown to the minimum amount required for a GmbH (€ 25,000.00 EUR), it is possible to change the legal form from a UG to a GmbH.
Our attorneys are available to provide advice regarding founding, maintaining, converting, or dissolving a UG.