Yes, of course. The German government is very open to the establishment of all types of businesses – regardless of whether or not it involves a German or a foreigner.

It is a GmbH (Gesellschaft mit beschränkter Haftung) or a UG (Unternehmergesellschaft).

The most popular forms among foreign entrepreneurs are GmbH and UG (“mini-GmbH”).

Both UG and GmbH are independent legal companies with an individual shareholder. The company bears most responsibilities, not the shareholder. The company makes contracts, possesses assets and is responsible for taxes. There is no personal liability of the shareholders of both UG and GmbH unless a fraud is made.

The main differences between the UG and the GmbH relates to the minimum capital needed: you can set up a UG with as little as €1, whereas a GmbH requires at least €25,000 in share capital.

GmbH — at least €25,000 in share capital (but a payment of 12,500 EUR in total is sufficient for registration with the commercial register). 

UG — as little as €1 share capital.

As a UG owner you are obliged to leave at least 25% of your annual profits in the company in order to be able to save up an additional capital reserve more quickly.  As soon as you have saved up €25,000 in your UG, you can convert it into a GmbH. Then the 25% savings obligation no longer applies.

No, the company formation process can be done remotely.

Yes it possible. If you cannot raise enough share capital for a GmbH, then set up a UG first. As soon as you have accumulated sufficient capital reserves, convert the UG into a GmbH at a reasonable price.

It is not mandatory to have a physical office within the country but it is mandatory to have a registered business address. 

The national corporate tax rate is set at 15%. A solidarity surcharge of 5.5% is then added, making the effective rate 15.825%.

If all the documents are in order company incorporation process usually takes approximately 10 working days.