• Navi

  • Can a director who is not resident in Germany set up a company in Germany?
  • What is a non-resident director?
  • How can a non-resident director set up a company in Germany?
  • What are the pros and cons of setting up a company in Germany?
  • Conclusion

Can a director who is not resident in Germany set up a company in Germany?

Setting up a company in Germany is a big decision that requires careful planning and preparation. German businesses are governed by strict laws and regulations, and it is important to understand these rules before embarking on setting up a business. A frequently asked question is whether a non-resident director can set up a company in Germany. In this article, we will look at the various options available to non-resident directors who want to set up a business in Germany.

What is a non-resident director?

A non-resident director is a person who is not domiciled in Germany and does not intend to settle there. Non-resident directors may be citizens of other countries or German residents living abroad. Non-resident directors can also be foreign companies wishing to set up a subsidiary in Germany.

How can a non-resident director set up a company in Germany?

There are several ways for a non-resident director to set up a company in Germany. The first option is to set up a limited liability company (GmbH). A GmbH is a very popular legal form in Germany and is often used by foreign companies to set up a subsidiary in Germany. To establish a GmbH, a non-resident director must appoint a legal representative in Germany who will be responsible for the management and compliance of the business. The legal representative can be a lawyer, an accountant or another qualified professional.

Another option for non-resident directors is to set up a company limited by shares (AG). An AG is a more complex and expensive legal form than a GmbH, but it offers shareholders greater protection against financial loss. To establish an AG, a non-resident director must appoint a legal representative in Germany and a board of directors consisting of three members. Board members must be German residents.

Finally, a non-resident director can also create a simplified limited liability company (SE). An SE is a less complex and less costly legal form than an AG, but it offers shareholders limited protection against financial loss. To set up an SE, a non-resident director must appoint a legal representative in Germany and a board of directors consisting of two members. Board members must be German residents.

What are the pros and cons of setting up a company in Germany?

Setting up a company in Germany has many advantages for non-resident directors. First of all, Germany is a very dynamic market and offers many opportunities for foreign companies. In addition, Germany is a very stable country and offers strong legal and tax protection for foreign companies. Finally, Germany is a country very open to foreign investment and offers attractive tax incentives to foreign companies.

However, setting up a company in Germany also has its downsides. First of all, German laws and regulations are very strict and can be difficult for non-resident directors to understand. Additionally, the costs of setting up and running a business in Germany can be high. Finally, it can be difficult for non-resident directors to find qualified employees in Germany.

Conclusion

In conclusion, a non-resident director can set up a company in Germany by choosing from the various legal forms available. The GmbH is the most popular and easily understood legal form for non-resident directors. However, it is important to understand the pros and cons of setting up a company in Germany before embarking on this venture. Finally, it is important to find a qualified and competent legal representative to manage and supervise the company.

In summary, setting up a company in Germany can be a very profitable decision for non-resident directors. However, it is important to understand German laws and regulations and find a qualified legal representative before embarking on this business. Finally, it is important to understand the advantages and disadvantages of setting up a company in Germany before making a decision.