This post is part of a series in which we are sharing our experience of founding a company in Germany. We hope that it will help others working their way through the foundation process. Read the first post in the series for more details.
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A real-life example of founding a limited company in Germany
One of the most frequent questions aspiring founders about founding a company is what it will all cost. There are many guides online that outline the cost, providing ranges depending on various variables(such as this one or this one). But sometimes it’s nice to see a specific example, so here’s ours. All values exclude VAT.
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Company |
Operating Company (GmbH) |
Holding Company 1 (GmbH) |
Holding Company 2 (UG) |
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Key facts |
2 shareholders, 2 directors, €25k equity |
1 shareholder & director, €25k equity |
1 shareholder & director, €11k equity |
|
Legal costs |
€500 Foundation Package (all three companies included) |
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Tax advisory |
€0 — advice provided as part of ongoing service agreement for accounting and tax advice |
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Notary |
€629 |
€281 — documentation and registration based on standard template |
€175 — documentation and registration based on standard template |
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Commercial Register |
€155 |
€155 |
€155 |
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Accounting – Opening Balance Sheet |
€470 |
€470 |
€470 |
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Chamber of commerce (IHK) |
€64 |
€64 |
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TV/Radio Licence |
€0 – Shared offices with existing license |
€0 — Office in a private home with no employees or company-owned vehicles |
Filing a trademark is not necessarily part of company foundation. Not all businesses require trademark protection. However, since they are a cost that many new companies will incur, I thought I would include an overview here.
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Trademark registration |
Cost |
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German Trademark Registration with DPMA |
€290.00 |
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International Trademark (Fee for local patent office DPMA) |
€180.00 |
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International Trademark (World Intellectual Property Organisation ) |
€2188.00 |
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Fee for international transfer of funds to WIPO |
€42.50 |
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Read the other posts in this series:
- Betting on the success of your 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
- How much equity does a new company need?
- Considerations for a minority shareholder: minority shareholder rights and social insurance
- Long-term considerations: protection from unwanted shareholders and vesting of shares
- 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 😉