Legal forms for formation
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The optimal legal form for your formation
Prior to founding a company, one question always arises: What legal form should your business have? In German commercial and company law, there are various legal forms; it is not possible to create a new legal form.
You can for instance start as a sole trader or set up a partnership or corporation.
The choice of legal form is far more than a matter of taste. It is of decisive importance for your capital requirements, the formation costs, liability issues, tax obligations, the image of your business and much more. Not every legal form is suitable for every founder and every business. On this page you find an overview of the possible options.
We set up your enterprise. You focus on business
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Andre Kraus, lawyer and founder of the KRAUS GHENDLER RUVINSKIJ law firm, is your contact in matters of company formation, trade mark law, reputation protection and corporate law.
The most common legal forms
Most entrepreneurs choose a sole proprietorship. Larger companies are often established in the form of corporations. The legal forms are as follows:
Sole trader
– Businessman (e.k.)
– Small trader
– Freelancer
Partnerships
– Civil law partnership (GbR)
– General partnership (OHG)
– Limited partnership (KG)
– GmbH & Co KG
– UG & Co KG
Corporations
– limited liability company
– UG (entrepreneurial company with limited liability)
– Public limited company
– gGmbH
– gUG
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What options do individual founders have?
Most founders start their business alone. They essentially have the following options:
– Founding a sole proprietorship (merchant, small trader, freelancer)
– Formation of a one-man UG
– Formation of a one-man limited liability company
What options do founding teams have?
If several people want to found a company together, they have more options:
Formation in the form of a partnership
– GbR
– General partnership
– Limited partnership
etc.
Formation in the form of a corporation
– limited liability company
– UG
– Public limited company
Capital requirements, costs, bureaucratic expenditure
Capital requirements
If you want to set up a company in the form of a limited liability company, you need so-called share capital. – The GmbH, for example, requires a share capital of €25,000-
Costs, bureaucratic expenditure
Depending on the form of business, there are also considerable differences in the costs and effort involved in setting up a company.
Sole proprietorships or GbRs, for example, can be founded with comparatively little cost and effort (business registration and registration with the tax office).
It is completely different with GmbH and UG as well as with OHG and KG. These companies are to be entered in the commercial register and notarized formation documents are required.
The forms of enterprise in detail
Small business owner or Sole trader
The simplest way to become an entrepreneur is to register a small business. There is no entry in the commercial register. The entrepreneur is liable with his private assets.
A registered trader (e.K.) is a sole trader who conducts commercial trade and is entered in the commercial register. Incorporation is inexpensive. Sometimes a business registration is required. Sole traders are liable with their private assets.
Civil law partnership (GbR)
To form a civil law partnership (GbR) at least two persons are required. There are only few formalities, no minimum capital and an entry in the commercial register is not necessary. The GbR shareholders are liable with their private assets.
General partnership (OHG)
The OHG is also a partnership and has much in common with the GbR. The special feature is that it operates a commercial enterprise and is entered in the commercial register.
Limited partnership (KG)
The KG is a partnership entered in the commercial register and a form of enterprise, in which not all partners are personally liable. There is a general partners and limited partners. Only the first-mentioned us fully liable.
Corporations: GmbH, UG and AG
The GmbH is a corporation and may have one or more shareholders. It is more expensive and more difficult to establish a limited liability company than one of the aforementioned forms of enterprise.
Usually EUR 25,000 share capital is required, articles of association must be concluded and a managing director must be appointed. The formation documents have to be notarised and the GmbH has to be entered in the commercial register.
The formation of an entrepreneurial company is similar, but only one euro of share capital is required. The UG is obliged to form reserves.
The Public limited company (AG) is a corporation with at least EUR 50000 share capital. In the case of GmbH, UG and AG the liability is limited.
Your formation team
![](https://anwalt-kg.de/wp-content/uploads/2018/08/Andre-Kraus.jpg)
Andre Kraus
Specialist lawyer for insolvency law
![](https://anwalt-kg.de/wp-content/uploads/2018/08/Ahaliya-Kapilan.jpg)
Ahaliya Kapilan
Lawyer
![](https://anwalt-kg.de/wp-content/uploads/2018/09/Oksana-Enns.jpg)
Oksana Enns
Business law graduate
![](https://anwalt-kg.de/wp-content/uploads/2018/09/Sara-Garcia-Corraliza.jpg)
Sara Garcia Corraliza
Lawyer
![](https://anwalt-kg.de/wp-content/uploads/2015/11/kgr-team-foto-alle-im-buero-v06-495x400.jpg)
and a team
of legal advisors, business law graduates and other lawyers
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Principles
Free initial legal consultation
Free initial legal consultation on your foundation project.
Quick and easy
We take care of the formalities of your formation – You concentrate solely on your business. There is no waiting period or long processing time.
Legal security
Your incorporation directly from the lawyer. We fulfill the reservation of legal advice by a lawyer (§ 2 II RDG) and assume the full legal guarantee.
Price transparency
We accompany you at a fixed price – without complex fees or indirectly allocated costs from intermediary portals.
Specialization
Due to our concentration on certain core areas we offer you a particularly high level of expertise at a a relatively low fixed price.
Long-term perspective
The consulting for your formation is our investment in a long-term cooperation in the fields of corporate and consumer law.
Do you have a general question about „formation in Germany“? We answer them here for free! Enter your question here
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Crypto Handel und Mining UG gründen erlaubt?
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Treuhandgeschäftsführung
07 Feb 2018/1 Kommentar/in UG GründungSehr geehrte Damen und Herren, unsere UG ist bereits gegründet. Nun fällt aufgrund eines Vertrauensmissbrauchs, der GF weg. Gibt es seriöse Anbieter, die eine Treuhandgeschäftsführung einer bestehenden UG anbieten? Es sollte bezahlbar bleiben und schnell und leicht umzusetzen sein. MFG Andreas Kobusch / GEsellschafter
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LÖSCHEN
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Hinweis
KRAUS GHENDLER RUVINSKIJ ist eine Kooperation der folgenden unabhängigen und rechtlich selbständigen Rechtsanwaltskanzleien: KRAUS GHENDLER Rechtsanwälte Partnerschaftsgesellschaft mbB, GHENDLER RUVINSKIJ Rechtsanwaltsgesellschaft mbH und KRAUS Anwaltskanzlei (Rechtsanwalt Andre Kraus).