Germany is a global powerhouse of technological advancement, responsible for 22% of Europe’s GDP, it has the largest economy in Europe with access to over 450 million consumers. The country one of the top 3 largest exporters in the world making it a lucrative target for international investors. There are over 22,000 foreign companies operating in Germany, employing more than 2.1 million staff, generating trillions of Euro in turnover. In addition, the economy is very stable enabling it to house 37 of the world’s 500 largest listed companies.

There are four main forms of German company incorporation:

• two types of limited liability companies; GmbH or UG (mini-Gmbh)
• stock corporation (AG)
• partnerships
• sole proprietor (sole trader)

The most popular forms among foreign entrepreneurs are GmbH and UG (“mini-GmbH”). Except for some unique details, the UG generally shares the same responsibility as the standard GmbH.However, one of 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.