We provide service regarding Accounting & consultancy in Germany

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Setup your Business in Germany

    We provide following services in Germany through our affiliates, which are fully authorised agent of German Federal Central Tax Office:

    Business start-up advice
    Company formation
    Online accounting
    Bookkeeping and bank reconciliations
    Fully outsourced accounts department
    Payroll support or fully outsourced payroll managed by us
    Tax returns for companies and individuals
    VAT refund and payments
    Accounts preparations
    Management accounts
    Transactional tax
    Double taxations reliefs
    Taxation advice for individuals
    Specialist corporation tax services
    Property and land transactions planning
    Business development and consultancy
    Compliance services with local tax authorities

    Types of Companies / Partnerships in Germany:

    The following forms of incorporation are customary in Germany:

    1. A Limited Liability Company (with the suffix GMBH)
    One person is sufficient to set up the company.
    A minimum registered share capital, as defined by law – At least one quarter of the capital must actually be invested.
    At least one quarter of the capital and no less than an amount defined by law must actually be invested.
    Management is in the hands of one or more directors according to the Articles of the company.
    In a company with more than 500 employees, it is compulsory to appoint a “supervisory committee”.
    The GMBH form of incorporation is the most popular in Germany, This is true as well for foreign investors who are setting up a branch in Germany.
    The company’s liability is for the amount of the capital only.

    2. A Stock Company (with the suffix AG)
    A minimum of five people is required to set up the company.
    The minimum registered share capital – is defined by law.
    At least one quarter of the capital must actually be invested.
    Management is in the hands of the majority of the directors.
    The shareholders’ meeting will appoint a “supervisory committee”.
    The company’s liability is for the amount of the capital only.

    3. A Regular Partnership (with the suffix OHG)
    All the partners are jointly and severally liable for the obligations of the partnership. – The profit from the partnership is not taxed as from a separate body. The profits of the partnership are divided among all the partners according to their shares in the partnership, other than in instances in which the partnership agreement determines otherwise.

    4. A Limited Partnership(with the suffix KG)
    The liability of the partners is limited to the amount of their investment in the partnership.
    At least one of the partners is liable for the obligations without any limit to the amount.

    Germany Value Added Tax:
    The standard value added tax rate in Germany is 19%.
    There is a reduced rate of 7% that relates mainly to food and agricultural products.
    Value added tax is imposed on assets and services in Germany as well as on imports into Germany.
    Overseas exports are exempt from value added tax.
    Value added tax reports must be submitted monthly or quarterly, depending on the annual turnover.
    There are special provisions for small businesses.

    Germany Inheritance and Gifts Tax:
    A tax applies in Germany to both inheritances and gifts and the application of the taxation principles is similar in both cases.
    When either the person making the gift / the testator or the recipient of the gift / the heir is a German resident, the tax applies also to assets that are overseas.
    When neither the person making the gift / the testator or the recipient of the gift / the heir is a German resident, the tax applies only to assets that are located in Germany.
    When tax is imposed in a foreign country, the tax paid overseas will be deducted from the tax payable in Germany. For these purposes a Double Taxation Prevention Treaty has been signed with a number of countries, among them, the United States of America, Switzerland, Austria and others.
    As a general rule, recipients of gifts / inheritances are divided into three groups.

    • Group 1 – a spouse, children.
    • Group 2 – parents and grandchildren.
    • Group 3 – all others.

    The tax rates vary according to the above groups and also depend on the value of the asset. The tax payable fluctuates between 7% and 50%.
    There are certain exemptions that depend on the degree of family kinship.

    Germany Real Estate Transfer Tax:
    The tax is imposed on real estate that is located in Germany.
    The taxes are transferred to the local authority in which the property is located.
    The tax is also imposed when buying at least 95% shares of a company owning real estate.
    The rate of tax is 3.5%-6.5%.