# Germany GmbH / UG Formation

> A GmbH is formed by notarising its articles of association before a German notary, paying in at least €12,500 of the €25,000 share capital to a German bank account, and registering in the commercial register (Handelsregister). It then registers its trade with the municipality and completes the tax registration questionnaire with the tax office. A UG can be formed with as little as €1 of capital.

Practice: Germany Business Services — https://www.industax.com/services/germany-business/

Managing directors don't need to live in Germany, but bank accounts and notarisation require identity verification, which can be done with apostilled documents or at a German consulate in some cases.

We coordinate formation with partner notaries and Steuerberater, and the Indian ODI and transfer pricing side.

## Key facts

| Item | Detail |
| --- | --- |
| Capital | €25,000 (≥ €12,500 paid in); UG from €1 |
| Formation | Notarised articles |
| Register | Handelsregister |
| After registration | Trade registration and tax registration |

## Who needs this

- Indian IT and engineering firms entering Germany
- Companies serving German clients
- Founders opening EU operations

## What's included

- Formation via partner notaries
- Capital deposit support
- Registrations
- ODI and TP planning

## Documents

- Parent company documents (apostilled)
- Director passports
- Business description

## Process

1. **Notarise** — Articles signed before a notary.
2. **Capitalise** — Capital paid in.
3. **Register** — Commercial, trade and tax registration.

Work that legally requires a German notary and Steuerberater is signed by a partner professional; Indus Tax coordinates it.

## FAQs

### GmbH or UG?

A UG needs minimal capital but must retain a quarter of annual profits until reserves reach €25,000; a GmbH carries more credibility with banks and clients from the start.

### Can the managing director live in India?

Yes, but the company should have real management presence in Germany, both for operations and to avoid tax residency issues.

### How long does GmbH formation take?

Typically a few weeks, depending on notary scheduling, bank account opening and the register court.

## Official sources

- German Commercial Register: https://www.handelsregister.de/

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Canonical page: https://www.industax.com/services/germany-business/germany-gmbh-formation
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.