How to start a business in Germany as a foreigner (2026)

Yes. 100% foreign ownership allowed; no nationality or residency requirement, but a German business address is needed. The usual structure is a GmbH (a UG 'mini-GmbH' can start from €1), registered with the Handelsregister at the local court.

Notary fees of around €350–€850 plus register fees.

Around 2–6 weeks.

€25,000, of which at least €12,500 is paid in at incorporation.

No foreign-ownership caps or local-partner requirement — non-residents and foreign companies can hold 100% of a GmbH, UG, AG or branch. Shareholders do not need to live in Germany, but the company must have a registered German business address, and a non-EU founder who wants to physically manage the business from Germany needs a residence permit under § 21 AufenthG.

The dominant vehicle is the GmbH, which requires €25,000 nominal share capital with at least €12,500 paid in at formation (GmbHG § 5). The Unternehmergesellschaft (UG, 'mini-GmbH') under § 5a GmbHG can be founded with as little as €1 but must retain 25% of annual profit until it accumulates €25,000. Branch offices and the AG (stock corporation, €50,000 minimum) are the main alternatives.

Typical sequence: (1) reserve/verify company name with the IHK/Handelsregister; (2) draft articles of association and have them notarized by a German notary (Musterprotokoll template available for simple single-shareholder GmbH/UG); (3) open a German business bank account and deposit the share capital; (4) notary files the incorporation electronically with the Handelsregister at the local Amtsgericht; (5) register beneficial owners in the Transparenzregister within one month; (6) file a Gewerbeanmeldung (trade registration, form GewA 1) with the local Gewerbeamt; (7) complete the Finanzamt tax questionnaire to obtain a tax number and VAT ID.

Handelsregister entry itself typically takes 2–4 weeks after notarization and capital deposit, and the whole process usually completes in 2–8 weeks; foreign founders should add time for apostilles, sworn translations and bank onboarding. Since the 2022 DiRUG reform, notarial GmbH formation can be done online via videoconference. The Gewerbeanmeldung fee is roughly €15–65 depending on the municipality.

Unlike many EU peers, Germany requires a German civil-law notary to draw up and certify the articles of association and file the incorporation electronically with the Handelsregister at the local court (Amtsgericht). Notary and court fees scale with the share capital and add material cost even for small companies; a company legally comes into existence only upon Handelsregister entry.

Non-EU/EEA citizens who want to run a business physically from Germany need a residence permit under § 21 AufenthG. § 21(1) requires an economic interest or regional need, a viable business plan and secured financing; § 21(5) covers liberal-profession freelancers with a lighter test but still requires proof of livelihood. Permits are initially issued for up to three years and can lead to a settlement permit after five years.