What we learned by founding three companies in Germany
In February 2018, we set the wheels in motion that would lead to the registration of three limited liability companies in Germany. For us, the business already existed in spirit for some time before taking this step. We’d already been planning and working on the project for over 6 months. But we needed to start finding developers, designers and researchers to work with us, so we felt it was time to make the company official.
The process of actually founding a company is a formality that doesn’t actually contribute to the success of a business. It won’t make your product any better or find you any customers. But it is an important step that signals the company is open for business. It is recommended that the foundation should happen before the founders start spending money and creating assets. The main reasons for this are legal and tax considerations.
There is a lot of information out there about how to found a company. The local chamber of commerce is a great resource for handy guides on what steps to take. But we found some of our questions were difficult to get answers about. So we decided to share our experience from this process in the hopes that it might help other people asking themselves the same questions.
So here is our story:
- Betting on the success of our business: why we decided to create a holding structure
- UG vs. GmbH: Selecting the business entity
- Choosing our advisors: do-it-yourself vs. finding someone qualified to help
- Planning for the best and the worst case: Creating the foundation documents
- Making it official: notary, banks and the commercial register
- The cost of founding: a real-life example of founding a limited company in Germany
Disclaimer: We’re not lawyers or tax advisors, to stay on the safe side consult an expert before doing anything 😉