Entity Formation in Germany (GmbH)

Ready for a permanent German presence? We help you incorporate a GmbH the right way, and stay alongside you for the accounting, payroll, and compliance that follow. Independent advice, including telling you when it is too early.

  • Independent advice
  • Vetted partners
  • Honest timing

What forming a GmbH in Germany means

A GmbH (Gesellschaft mit beschränkter Haftung) is Germany’s private limited company, the standard vehicle for a permanent business presence. When you form one, you become the legal employer and operator in Germany, with full control and no per-employee EOR fees, in exchange for the setup time, the minimum capital, and the ongoing obligations.

01

Your own company

A GmbH makes you the legal employer and operator in Germany, with full control of employment terms and a local brand presence.

02

Lower cost at scale

No per-employee EOR fees. For permanent, proven headcount, owning the entity is more cost-effective than ongoing EOR arrangements.

03

Setup takes weeks

Incorporation typically takes one to three weeks, and you cannot employ anyone until it completes. Timing the move matters, which is why many companies bridge with an EOR first.

How forming a GmbH works, step by step

From structuring the company to operating it compliantly.

01 — Structure & prepare

We confirm a GmbH is right for you, then prepare the incorporation documents, arrange notarisation, and set up your registered German address.

02 — Capital & notarisation

Share capital (EUR 25,000, with at least EUR 12,500 paid up) is deposited, and the company is entered in the commercial register (Handelsregister).

03 — Register the company

Corporate tax and tax accounts are set up with the Finanzamt, so you can operate and employ compliantly.

04 — Operate & stay compliant

Business bank account, then ongoing accounting, payroll, filings, and annual reporting, all of which we can run for you.

What forming a GmbH in Germany costs

Two kinds of cost: the one-off formation (including minimum share capital of EUR 25,000, with at least EUR 12,500 paid up) and the ongoing operating obligations. We give you a clear figure before you commit.

Share capital & formation

Minimum share capital is EUR 25,000 (at least EUR 12,500 paid up). This is equity you own, not a fee. Plus state registration and any notary or e-signature costs.

Corporate tax

approximately 30% (15% federal corporate tax plus ~14-17% municipal trade tax)

VAT

Standard VAT rate 19%, with registration and periodic returns once you cross the local threshold.

Ongoing obligations

Accounting, monthly payroll (Lohnsteuer and social insurance), VAT and corporate tax filings, and annual financial statements, all of which we can manage for you.

Why form your German GmbH through Bradford Jacobs

Why companies incorporate in Germany through us rather than a one-off formation agent.

We advise you on the best time to incorporate

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

End-to-end, not just the paperwork

We do not disappear after registration. We stay on for the accounting, payroll, and compliance, so your GmbH runs, not just exists.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

The right specialists, in place

Notary, tax, and accounting partners we have vetted and worked with, coordinated for you, so the process moves and nothing gets missed.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of formations

Two decades forming and running entities across Europe. Germany also offers the UG, a mini-GmbH that needs as little as EUR 1 in share capital, and the right choice between UG and full GmbH depends on your funding plans and credibility needs, not on saving money today. Two decades of getting that call right is what keeps you from restructuring later.

  • GmbH formations
  • Notary & tax partners
  • Traps avoided

We run it after you form it

Incorporation is the start, not the finish. We stay on for accounting, payroll, tax filings, and annual accounts, so your GmbH operates from day one without you building a local finance function.

  • Full back office
  • Accounting & payroll
  • Annual accounts

The GmbH surprise nobody prices in

A growing business hits a good quarter and someone says, let us just set up a proper German company. It sounds responsible. It usually is not, yet. Here is what people expect against what happens in practice.

Employment & payroll obligations

Expectation: it takes a few weeks and is just admin. Reality: incorporation runs through notarisation and commercial register entry and takes weeks, minimum share capital of EUR 25,000 must be addressed (at least EUR 12,500 paid up), a registered German address and director obligations apply, and you cannot legally employ anyone in the gap.

Tax, filing & reporting obligations

Expectation: we can always reverse it. Reality: dissolving a GmbH needs a shareholder resolution, creditor notification, and a winding-up period. And once it exists, the obligations do not stop: annual financial statements, monthly Lohnsteuer and social insurance filings, corporate and trade tax returns, and director liability. None of this is a reason not to form a GmbH. It is a reason to form it at the right

What we handle for your GmbH

Beyond incorporation, we can run the full back office for your GmbH.

Compliant payroll

Compliant German payroll and employment administration, issued and maintained for you.

Payroll & filings

Monthly payroll run, with Lohnsteuer and social contributions calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: annual leave, sick pay, parental leave, notice, and severance where legally triggered.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Forming a GmbH in Germany: your questions answered

Straight answers on forming and running a GmbH in Germany.

How long does it take to form a GmbH?

Usually one to three weeks once documents, share capital, and the registered address are in place, longer with any complication. You cannot legally employ anyone until registration completes, which is why timing matters and why many companies bridge with an EOR first.

Minimum share capital is EUR 25,000, with at least EUR 12,500 paid up. This is equity you own, not a fee. The other real cost is the ongoing accounting and compliance, which we can run for you.

Yes. A GmbH can be fully owned and directed by non-residents. You will need a registered German address and to complete notarisation and the commercial register (Handelsregister) filing, all of which we arrange.

Form a GmbH when you have permanent, proven headcount and want full control, and the per-head savings justify the ongoing costs. Use EOR while you are still validating the market or need people working quickly. Most companies start with EOR and incorporate later. We advise on the crossover.

Accounting, monthly payroll (Lohnsteuer and social insurance), corporate and trade tax filings, VAT, and annual financial statements. We can run all of it so the entity stays compliant without you building a local finance function.

Yes, and it is how most companies use us. Beyond incorporation we provide ongoing accounting, payroll, and compliance, so your German GmbH operates smoothly from day one without hiring locally for back office.

Ready to form your company in Germany?

Tell us your plans for Germany and we will tell you honestly whether now is the time to incorporate, then handle it end to end if it is, usually scoped within a day. No formation-mill upsell, just the right call.

Tax, company, and labour data verified June 2026 (official German sources, PwC). Figures change; we confirm the current position when we scope your formation.