Buying a Company in Germany

Which Legal Forms of Ready-Made Companies Can Be Purchased in Germany

• Die Aktiengesellschaft — equivalent of a Joint Stock Company. One or several legal or natural persons receive shares in the established company in exchange for their contributions.
• Die Partnerschaftsgesellschaft — partnership, an association of two or more persons for commercial or other purposes.
• Die Kommanditgesellschaft — limited partnership, established by two or more legal or natural persons.
• Gesellschaft mit beschränkter Haftung (GmbH) — equivalent of a Limited Liability Company.

Each company must comply with reporting requirements, minimum share capital, and taxation. The most common form of entrepreneurship is the GmbH. When setting up this company from scratch, you must contribute:

• Share capital — €25,000. At registration, at least half (€12,500) must be paid, with the rest to be paid later.
• Fees to the municipality and entry in the Commercial Register — starting from €300.

Expenses Associated with Buying a Ready-Made Company in Germany

Before buying a company in Germany, you should consider the expenses involved in the transaction. The standard list of costs includes:

• Payment of the declared company price.
• Replenishment of the share capital in the company’s account.
• Notary fees for re-registration.
• Fees for experts assisting with the transaction.

Why Buying a Company in Germany Is Profitable

Entrepreneurs are attracted to doing business in Germany, where tax burdens can be minimized. Furthermore, when purchasing a GmbH, the new owner does not need to re-contribute share capital or pay mandatory state fees required for newly registered companies. Other advantages include:

• Producing goods or providing services under a recognized German brand. Clients trust local companies, especially those with an established history.
• The company is seen as a reliable business partner.
• Opportunity to export goods to CIS countries without VAT. Local companies may also access preferential insurance rates, subsidies, and government grants.
• Opening accounts in a reputable bank. You can purchase a ready-made company in Germany with an existing bank account, and later obtain a credit card and/or checkbook.
• No duties when operating company branches in CIS countries.
• Possibility to register company branches in EU countries for further expansion.

Why Buying a Ready-Made Company in Germany Is More Economical Than Registering a New One

Purchasing an existing company in Germany saves considerable time — about 3 weeks to 1.5 months — not including tasks like finding premises and organizing operations. This time is normally required for:

• Issuing a Registration Number — 2 to 5 weeks.
• Opening a bank account — up to 4 weeks.
• Depositing company capital into the account — from 1 day.

Local financial institutions carefully review companies owned by non-residents, so account opening can take a long time and additional documents may be requested. To get approval, you must prove the transparency of the capital source. Buying a company eliminates this step. The new owner receives a ready business with share capital already in a German bank account.

After purchase, the new owner may change:

• the company’s registered address;
• the brand name;
• the legal form.

What Information Is Required from a Buyer Before Acquiring a Ready-Made Company in Germany

The list of documents depends on the buyer’s status. The standard minimum includes:

• Information about future directors.
• Identity documents of the owners.
• Information about the buyer as a legal entity — description of activities, legal address.
• Power of attorney — if the owner or representatives cannot attend the notary in person.

How Ready-Made Companies in Germany Are Re-Registered

When buying an existing company, the new owner does not need to register a bank account or go through the initial registration process. Therefore, the transaction can be completed in as little as 1 day by agreement. The process includes:

• Choosing a payment method — through the transaction-handling company or a notary.
• Re-registration — a notary transfers ownership to the new owner and issues a corresponding document.

Then, the standard steps follow:

• Obtaining a business license from the Gewerbeerlaubnis (Trade Office).
• Obtaining a tax number (Steuernummer), if required, since most companies already have one.

What to Know Before Buying a Ready-Made Company in Germany

• Profitability and efficiency of the company. A financial evaluation highlights strengths and weaknesses, including the company’s credit history.
• Reputation. A positive reputation ensures business prospects.
• Reason for sale. It’s important to know why the company is being sold.

Incluence Limited has extensive experience with international legal transactions, ensuring clients receive only reliable information about the company being purchased. To learn more about how to buy a company and see available businesses in Germany, contact our experts.

Fill out the online form or contact our consultants using the details on our website. After the transaction, we are ready to support clients both with advisory services and in actual business operations.