Company Formation
Other Company Forms
Besides the GmbH and branch office forms, German company law offers several other company forms that may be used by foreign companies expanding into the German market.
Stock corporation (AG)
The German stock corporation (Aktiengesellschaft, AG) is a company form intended for larger companies with a large number of shareholders. Eligibility for a stock exchange listing and the easy assignability of the shares makes it ideal for attracting capital. In contrast to the GmbH, the founding and organizational formalities of an AG are relatively numerous and inflexible due to mandatory rules. This said, the AG form enjoys a high market reputation.
The AG requires a minimum share capital of EUR 50,000. The articles of association need to be certified by a notary. Legal consultation is advisable for drawing up the articles of association.
The AG can be established by one or more persons. Founding shareholders can either be natural or legal persons.
Partnerships
Besides corporations such as the GmbH or AG, there are also different forms of partnerships.
Characteristic for a partnership is the personal commitment of the partners to their working efforts in the partnership. In partnerships, the individual partners responsible for the liabilities of the company (including private assets) act for the company. Limitations of liability for individual partners are only possible to a limited extent. Any partnership requires at least two partners.
There are four major forms of partnerships in Germany. Their main difference lies in the liability of their partners and required registration obligations.
- Civil Law Partnership (GbR)
- General Commercial Partnership (oHG)
- Limited Partnership (KG)
- GmbH & Co. KG
