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.
The share capital of the AG is EUR 50,000.00. One partner and one shareholder obligatory for establishing an AG in Germany.
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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.
A company in Germany could be incorporated within 2-5 working days if all the documents are submitted accordingly.
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.
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,
- 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.
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
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