Corporations
GmbH founding
The GmbH is the most common legal form of a company with limited liability. The share capital is at least €25,000 and can be raised by one or more shareholders.
Limited liability
The shareholders are only liable up to the amount of their contribution to the company. It is easy to manage and shares can be easily transferred. To enter a GmbH in the commercial register, a quarter of the shares must be paid in, after which the company is formed.
UG founding
A UG allows entrepreneurs and small businesses to set up a limited liability company with lower initial costs. The minimum capital contribution is just €1. The winnings must be kept and when they reach €25,000 they must be converted into an GmbH.
gGmbH Founding
A gGmbH combines the advantages of a GmbH with a non-profit structure. It is exempt from corporate taxes such as corporation tax, solidarity surcharge and trade tax; VAT is usually reduced.
Founding of AG
An AG must have a share capital of at least €50,000. An AG has three bodies: the general meeting, the supervisory board and the board of directors.
Foundation of a Holding
A holding company is an association of several companies that can hold shares in several subsidiaries. A holding company offers many advantages.
More control
The main purpose of a holding company is to control these subsidiaries. Another advantage is that the holding protects the owners from liability in the event of a company's insolvency.
Lower tax costs
A holding company can save on taxes by simply moving it from one country to another when tax rules change, because it doesn't own any tangible assets, only shares.
Cheaper loans
In addition, a holding company can borrow money and then lend that money to its subsidiaries. In diesem Fall sind die Kreditzinsen niedriger, da die Kreditgeber die Holdinggesellschaft als finanziell stärker einschätzen, da die von der Holdinggesellschaft gehaltenen Aktien im Falle eines Kreditausfalls ohne zusätzliche Kosten an den Kreditgeber übertragen werden können. In this case, the lending rates are lower because the lenders consider the holding company to be financially stronger since the shares held by the holding company can be transferred to the lender in the event of a loan default at no additional cost.