Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea

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Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea

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Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea While Setting up a Company in Germany, there are a lot of factors that need to be considered and one of them is the type of corporation you want to form and whether a GmbH is good idea or not. A GmbH can be as small or as big as you want it to be. It could be as small as a one man army with no support staff or as big as a massive conglomerate. It is also one of the most popular business classification.

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Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea While setting up a GmbH in Germany, there are a few must haves. For example, you need to have at least â‚Ź25,000 in the bank.

This does not mean that this amount needs to be thee all the time, however. You can use this capital to pay salaries, rents etc. It simply has to be there in order to start the GmbH. Also, you can start out by putting half of it in the bank that is â‚Ź12,500.

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Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea Being the most popular type of business organisation, here are 5 reasons why setting it up is a good idea: 1.

Limited Liability

2.

It Can Be Of Any Size

3.

Your Private Life Is Not At Risk

4.

You Do Not Need To Be German

5.

A GmbH Is European Wide

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Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea 1.

Limited Liability

The foremost reason to set up a GmbH is that the liability is limited. In case anything goes wrong, your company would be the one responsible and there would be no legal liability on you as a person. For example, you are running a market consultancy and are serving a client as a sole proprietor. In the worst-case scenario, suppose your advice has led to a huge loss of your client and he has sued you for this.

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Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea In such case, you will be personally responsible to that client. Now, if you have money to pay him off, you are lucky.

But if not, you might have to mortgage or sell your property. On the other hand, if you own a GmbH, only your corporation would be liable and your personal life won’t be at risk.

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Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea 2.

It Can Be Of Any Size

The other reason to have a GmbH is that it could be of any size. You can have a GmbH of one employee or a thousand of them. Some of the biggest companies in Germany are GmbHs.

So going for this option can be a good idea for you especially if you are a start-up.

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Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea 3.

Your Private Life Is Not At Risk

This is again the most important point. The best thing about not being liable personally is that it applies to a whole range of companies. So you can own a construction company and build a house. If anything at all happens to that house before the morning you were supposed to hand over the keys, your company can go bankrupt, but your personal effects are not at risk.

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Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea 4.

You Do Not Need To Be German

Another good reason to have a GmbH is that a foreigner can be the owner of it. In order to start a GmbH, all need is an office or an address in Germany. But this doesn’t mean that you or your managers or directors need to be Germany. You can all be foreigners. Not only this, you can even start a GmbH if you live in another country altogether.

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Five Explanations Why Setting Up A GmbH In Germany Is A Good Idea 5.

A GmbH Is European Wide

The other reason to go for GmbH is that you do not need to register a company in every country in Europe. A GmbH can do business in the entire EU without having to start a new company in every country.

Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com


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