FAQ Company Formation
1. Can I open a company without being a resident?
2. If an address is essential, can I use my friends address who are living in Germany?
3. What are the documents required from myself?
4. What are all the costs involved for a UG / GmbH?
There are several options available and the costs for a formation can be calculated with our order form.
5. How many types of tax will I have to pay?
Subject to tax is the company itself for corporate tax, trade tax and capital gains tax. The overall tax burden would be approximately 30 % depending on the seat of the company.
6. Are salaries deductible from any taxes?
Salaries are expenses which lower the profit and this profit is basis for the tax calculation.
7. As I will be conducting the Ecommerce platform outside of Germany, can I file my expenses from abroad?
The company is located in Germany and therefor responsible to file tax declarations in Germany. If the firm has to pay expenses they are deductible from the taxable income.
8. Will the tax authorities accept international invoices?
It is common that companies are involved in international business. Generally, also international invoices are expenses. From time to time the tax authorities will conduct an audit to check the accounting and if there are doubt regarding the invoices they might not be treated as deductible.
9. As I understand, once I get the license approved, I can open a bank account online?
There is generally not license required to do business in Germany except for some regulated topics (e.g. financial market, real estate agents etc.). A bank account is required during the company formation and the registration of the company already requires a bank account.
10. If I will start paying taxes will I be covered under social security and medical insurance?
You have to differentiate between the company’s tax obligations and the ones from you as an individual. As an individual you tax obligations depend on your place of residence. If this in more than one country double taxation agreements may apply. If you live in Germany and are employed as the managing director, you can pay social security and medical insurance. If you are the dominant shareholder you may opt out from social security.
11. How much do you charge to prepare all of the above?
The costs for company formations can be calculated with our order forms. The further costs for accounting, tax filings depend on the monthly transactions and turnover.