How to start a business in Germany as a foreigner (2026)

Legal framework

GmbH-Gesetz (GmbHG) and Handelsgesetzbuch (HGB) for company formation, Gewerbeordnung (GewO) for trade registration, § 21 Residence Act (AufenthG) for non-EU self-employment; competent bodies are the local notary, the Handelsregister at the Amtsgericht, the Gewerbeamt (trade office), the Finanzamt (tax office), and the Transparenzregister.

Starting a business in Germany as a foreigner

The usual vehicle for a foreigner starting out in Germany is a GmbH (a UG 'mini-GmbH' can start from €1), registered with the Handelsregister at the local court.

Company type

a GmbH (a UG 'mini-GmbH' can start from €1)

Registered with

the Handelsregister at the local court

Minimum capital

€25,000, of which at least €12,500 is paid in at incorporation

Timeline

around 2–6 weeks

Government cost

notary fees of around €350–€850 plus register fees

Foreign ownership

100% foreign ownership allowed; no nationality or residency requirement, but a German business address is needed

Rules and fees change; confirm with the official registry before incorporating.

Key points: starting a business in Germany

1. 01Foreign ownership

   No foreign-ownership caps or local-partner requirement — non-residents and foreign companies can hold 100% of a GmbH, UG, AG or branch. Shareholders do not need to live in Germany, but the company must have a registered German business address, and a non-EU founder who wants to physically manage the business from Germany needs a residence permit under § 21 AufenthG.

   gtai.de ihk.de

2. 02Legal forms and minimum capital

   The dominant vehicle is the GmbH, which requires €25,000 nominal share capital with at least €12,500 paid in at formation (GmbHG § 5). The Unternehmergesellschaft (UG, 'mini-GmbH') under § 5a GmbHG can be founded with as little as €1 but must retain 25% of annual profit until it accumulates €25,000. Branch offices and the AG (stock corporation, €50,000 minimum) are the main alternatives.

   gtai.de gtai.de

3. 03Setup steps

   Typical sequence: (1) reserve/verify company name with the IHK/Handelsregister; (2) draft articles of association and have them notarized by a German notary (Musterprotokoll template available for simple single-shareholder GmbH/UG); (3) open a German business bank account and deposit the share capital; (4) notary files the incorporation electronically with the Handelsregister at the local Amtsgericht; (5) register beneficial owners in the Transparenzregister within one month; (6) file a Gewerbeanmeldung (trade registration, form GewA 1) with the local Gewerbeamt; (7) complete the Finanzamt tax questionnaire to obtain a tax number and VAT ID.

   gtai.de handelskammer-hamburg.de

4. 04Timeline and cost

   Handelsregister entry itself typically takes 2–4 weeks after notarization and capital deposit, and the whole process usually completes in 2–8 weeks; foreign founders should add time for apostilles, sworn translations and bank onboarding. Since the 2022 DiRUG reform, notarial GmbH formation can be done online via videoconference. The Gewerbeanmeldung fee is roughly €15–65 depending on the municipality.

   gtai.de handelskammer-hamburg.de

5. 05Mandatory notary and Handelsregister

   Unlike many EU peers, Germany requires a German civil-law notary to draw up and certify the articles of association and file the incorporation electronically with the Handelsregister at the local court (Amtsgericht). Notary and court fees scale with the share capital and add material cost even for small companies; a company legally comes into existence only upon Handelsregister entry.

   gtai.de gtai.de

6. 06Self-employment visa for non-EU founders

   Non-EU/EEA citizens who want to run a business physically from Germany need a residence permit under § 21 AufenthG. § 21(1) requires an economic interest or regional need, a viable business plan and secured financing; § 21(5) covers liberal-profession freelancers with a lighter test but still requires proof of livelihood. Permits are initially issued for up to three years and can lead to a settlement permit after five years.

   ihk.de gesetze-im-internet.de

Starting a business in Germany: FAQ

Timeline of decisions

1. 1 Jan 2025Law · official
   Fourth Bureaucracy Relief Act (BEG IV) takes effect

   Germany's BEG IV reduced red tape for businesses, allowing text-form (digital) employment contracts and long-term commercial leases instead of wet-signature documents, easing the administrative burden of setting up and running a company.

   Bundesgesetzblatt (Federal Law Gazette)

2. 1 Jan 2024Law · official
   Partnership Law Modernization Act (MoPeG) enters into force

   The MoPeG overhauled German partnership law for the first time in over a century, granting civil-law partnerships (GbR) statutory legal capacity and creating a voluntary public partnership register (eGbR), clarifying a major founding option for small businesses.

   Deutscher Bundestag (DIP)

3. 1 Aug 2023Law
   DiREG extends online formation to non-cash and amendments

   Supplementing DiRUG, the DiREG allowed online notarized formation of GmbH/UG via non-cash (in-kind) contributions and online articles-of-association amendments and capital increases, widening the scope of fully remote company formation.

   Heuking

4. 1 Aug 2022Law · official
   DiRUG enables online GmbH formation via video notarization

   For the first time, founders could incorporate a cash-funded GmbH/UG entirely online through a video conference with a notary using electronic eID identification, ending the requirement of physical presence at the notary's office.

   Bundesnotarkammer (Federal Chamber of Notaries)

5. 2 Oct 2018Law · official
   EU Single Digital Gateway Regulation (2018/1724) adopted

   The regulation mandated online access to key administrative procedures, including registering a business, across the EU, reinforcing Germany's Points of Single Contact and online trade-registration access for founders.

   EUR-Lex (European Union)

6. 1 Nov 2008Law · official
   MoMiG modernizes GmbH law and creates the UG (mini-GmbH)

   The most sweeping GmbH reform since 1892 introduced the Unternehmergesellschaft (UG, haftungsbeschränkt) that can be founded with as little as €1 in capital, dramatically lowering the entry barrier to a limited-liability company in Germany.

   IHK Region Stuttgart (Chamber of Commerce)

7. 10 May 1892Law · official
   GmbH Act (GmbHG) enacted, creating the limited liability company

   Germany pioneered the private limited liability company as a lighter-regulation alternative to the Aktiengesellschaft; the GmbH (minimum capital later set at €25,000) remains the dominant corporate form for German businesses today.

   Bundesministerium der Justiz (gesetze-im-internet.de)

8. 21 Jun 1869Law · official
   Gewerbeordnung establishes freedom of trade (Gewerbefreiheit)

   The North German Confederation's Trade Regulation Act enshrined the right to start and operate a business; its §14 trade-registration (Gewerbeanmeldung) requirement still governs how sole traders and businesses register today.

   Bundesministerium der Justiz (gesetze-im-internet.de)

Sources

1. 1.gtai.de/en/invest/investment-guide/company-set-up-in-germany
2. 2.gtai.de/en/invest/investment-guide/setting-up-a-gmbh-630322
3. 3.gtai.de/en/invest/investment-guide/other-company-forms-630372
4. 4.gtai.de/en/invest/service/publications/investor-s-basics-setting-up-business-
5. 5.handelskammer-hamburg.de/eng/hauptnavigation/fairplay/business-registration/registering-trade-
6. 6.ihk.de/stuttgart/english/services2/business-support/self-employment-by-forei
7. 7.gesetze-im-internet.de/englisch_aufenthg/englisch_aufenthg.html