Frequently Asked Questions
Here you will find answers to the most frequently asked questions about setting up a company.
Does a Shelf Company already maintain a bank account?
Our ReadyCo Shelf Companies already maintain bank accounts Upon the purchase of a Shelf Company, the newly appointed director would merely have to go to the relevant bank and deliver his sifgnature to the bank so that he would have direct access to the bank account.
What are the basic accounting and auditing requirements, which have to be adhered to? Is it possible to apply for tax exemption? What is your fee schedule for these services?
The company would be obliged to file its annual accounts (profit & loss account and balance sheet) on an annual basis. The work generated in maintaining bookingkeeping would be minimal for the time that the company does not undertake any real business. No general rule for tax exemption for new companies exists, but as far as no profits are generated no income tax and no local tax will be charged. Fees for bookkeeping depend on the number of business transactions; a simplified annual account and tax declaration (when no business is undertaken) should not exceed 1.500 EUR.
We would like to realise our business idea as quickly as possible and would like to incorporate a company for this purpose. Would it be advantageous for us to purchase a company, which has already been incorporated?
The purchase of a pre-incorporated company (Shelf Company) is the right way for anyone wishing to take business action as quickly as possible with as little financial, time and organisational effort as possible. In the purchase of a Shelf Company, one saves time by avoiding the lengthy registration process and purchases instead a company, which has already been registered in the commercial registry. The purchase of a Shelf Company enables one to enter into a position of having limited liability as quickly as possible. Such a transaction also has the benefit of fixed and transparent costs.
What are your fee rates for the purchase of a Shelf Company in Germany?
You would be able to purchase a Shelf Company for a fixed price of 3.500,00 EUR (please refer to our ReadyCo service). In the event that you require individual or specific advice in addition to our ReadyCo services, this advice would be charged on an hourly rate. You would be able to find further information on our hourly rates in our price list.
What is the minimum capital requirement in a GmbH? Should the shareholders inject the whole sum of the paid up capital at the beginning?
The minimum capital requirement for a GmbH amounts to 25.000,000 EUR. Upon the purchase of a Shelf Company at Herfurth & Partner, you would be obliged to make payment of full capital sum. Since the end of 2008, it is also possible to incorporate a GmbH with a paid-up capital, which amounts to only 1 EUR. This variation of the GmbH is called the Business Company with Limited Liability (?UG?). A UG, which has been incorporated by Herfurth & Partner has a paid-up capital amounting to 1.000,00 EUR. Of all the profits made by a UG within a year, 25% of the amount has to be reserved. When the reserved profits amount in totoal to 25.000,00 EUR, it would be possible for the shareholders to transform the UG into a GmbH and to rename the company to become a GmbH.
Do you have shelf companies available at the moment?
Yes.
How much does it cost to register a trademark in the German trademark register?<\p>
The costs of registering a trademark depends on the number of classes to be protected. For Example, one trademark is to be registered in three classes: The costs arising at the German Patent and Copyright Office would amount to approximately 300 EUR. A further 200 EUR would be invoiced in the event that the registration takes place without any delay and complications. Legal fees for the making of an application for registration amounts to approximately 500 EUR. Further legal costs would arise for any varifications, researches, which may be necessary in individual cases. The costs of such further costs would depend on the relevant name or logo, which is to be protected. We would be in a position to give you more detailed information on anticipated costs upon receipt of the actual name/logo, which needs to be protected. The costs for a simple database research with regards to an intended business name amounts to approximately 200 EUR.
When can one expect to obtain (i) a simple database research result; (ii) the trademark registration certificate?
For a simple database research, one can expect a response within 1 or two days. For the registration of a trademark, the certificate would be received in approximately 3-6 months.
What kind of information should be provided to you for the registration of a trademark?
Name of the trademark, logo and business activities to be protected, information as to whether only the name, or only the logo or whether both name and logo needs to be protected.
Would be sufficient for a director to set out his office address in the commercial registry or would it be necessary for the director to set out his private address?
It is necessary to include both the office as well as private address in the commercial registry.
Please explain what is meant by “sole / single power” (Einzelvertretungsbefugnis) and “self representation”?
A GmbH can have more than one director. Generally, multiple directors only acting together would have the requisite power to act for and on behalf of the company. Insofar as the directors are agreeable to grant this power to a single director, it would be possible for this director to also act alone. In the event that a director is consequently able to act alone for and on behalf of the company, one refers to this power as “sole / single power (Einzelvertretungsbefugnis”).
In general, a director would not be able to represent a company when he is personally involved on the other side of the transaction (prohibition against transacting with oneself). Also, a director is not able to represent the company on one side and represent the other party on the other side of the transaction at the same time (prohibition against multiple representation). A director may be released from both the prohibition against transacting with oneself as well as the prohibition against multiple representation.
What kind of information do you need for the purchase of a Shelf Company?
We furnish our clients with a checklist, which needs to be filled up. This checklist would contain all the information, which we would need.
We have not been able to find a suitable address for our company. Would it be possible for us to utilise your office address as our company address?
A company incorporated in Germany is required to maintain a domicile address at all times. We are pleased to offer to you the use of our office address as your company address on a free-of-charge basis for a period of 6 weeks from the date of the purchase of the Shelf Company. Upon the termination of these 6 weeks, we would be happy to assist you in finding suitable premises for your company.