Expand to Germany effortlessly. Our guidance streamlines opening a subsidiary company, offering support at every step.
Expand to Germany effortlessly. Our guidance streamlines opening a subsidiary company, offering support at every step.
A subsidiary is a company controlled by a parent company that owns over 50% of its voting stock. Both are separate entities for taxation and regulation. They must follow the laws of the subsidiary’s country. Recently amended in the EU, the Parents-Subsidiary Directive now requires the parent company to hold only 10% of shares to qualify for withholding tax exemption, reducing double taxation with the parent company’s tax counted against the subsidiary’s profits tax.
The most common legal form for a subsidiary in Germany is the GmbH (Gesellschaft mit beschränkter Haftung), which is a private limited liability company. Other options include UG (Unternehmergesellschaft), a mini-GmbH, or AG (Aktiengesellschaft) for larger businesses.
Yes, 100% foreign ownership is permitted. There are no restrictions on foreign shareholders or directors, although at least one managing director must be appointed (they do not need to be a German resident).
To register a GmbH, a minimum share capital of €25,000 is required, with at least €12,500 paid up at the time of incorporation. For a UG, the capital requirement starts from just €1.
Required documents include:
● Parent company’s Certificate of Incorporation
● Parent company’s Articles of Association
● Power of Attorney for local representatives
● Proposed subsidiary Articles of Association
● Notarised application to the Commercial Register
● Identification of directors/shareholders
Documents must be translated into German and notarised.
The process typically takes 2–4 weeks, including:
● Drafting legal documents
● Opening a corporate bank account
● Depositing share capital
● Notary certification
● Registration in the Commercial Register (Handelsregister)
● VAT and tax registration
We offer full setup support to accelerate this timeline.
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