Public Limited Company in Germany
The German company Aktiengesellschaft (AG) is suitable for companies requiring a lot of capital and where company management is intended to be independent from the shareholders as far as possible.
Registration conditions
The share capital of the AG is EUR 50,000.00. One partner and one shareholder obligatory for establishing an AG in Germany.
A one-person AG is not possible, because, in addition to a managing board, the law requires a supervisory board with at least three members. However, it is allowed to form an AG, where the sole shareholder also functions as managing board director or a member of the supervisory board.
Timeline
A company in Germany could be incorporated within 2-5 working days if all the documents are submitted accordingly.
Fees
The nominal share capital for founding is at least 50 000 Euro. An alternative to this is an asset-based founding, whereby the contributed economic goods must also have a common value of at least 50 000 Euro.
Compulsory regulation
Even if the German Commercial Code provides the main regulations for setting up a company in the country, the Public Limited Company falls under the specific regulations of the German Stock Corporation Act (AktG). The Stock Corporation Act regulates the procedural matters on:
- the incorporation procedures,
- management,
- powers of the supervisory board of the German AG,
- the rights and obligations of the shareholders,
- the share capital requirements,
- dissolution procedures for German AG.
Documents
In order to form a German stock corporation, the following is required:
- Drafting of the Articles of Association
- Registration with the Commercial Register
- Registration with the Trade Office
Consultation about company registration
Accountancy
The German PLC must register for taxation. The management board is obligated to maintain the accounts. They should also prepare the annual accounts, the annual balance sheet, the profit-and-loss statements and other notes on the accountancy.
Taxes
Regarding the taxation of German PLC, they will are subject to the corporate tax, the dividend tax and the trade tax. Depending on the goods or services they provide, joint stock companies will also be subject to VAT registration.
Bank account
German Public Limited Company also must open a corporate bank account.
Other types of companies
If you feel like Public Limited Company does not fit your needs, click the button below and you will see other legal forms like Limited Liability Company, Holding Company, Branch office and more.
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