Countries/Germany
Germany

Starting a business in Germany

The headline rate is 15%. What you actually pay depends on the municipality you register in, and the spread is nine points wide.

GmbH or UG (haftungsbeschraenkt)?All guides
At a glanceVerified Sep 2026
~30%
Combined, typical
15%
Federal corporate
19%
VAT
EUR 25,000
GmbH capital
Verified against official sourcesSee citations →

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The decision that shapes everything: GmbH or UG

GmbH
EUR 25,000 capital
  • EUR 12,500 paid in before registration
  • The form counterparties and banks expect
  • Notarisation mandatory, video notarisation available
  • Trade tax varies with the municipal Hebesatz
vs
UG (haftungsbeschraenkt)
From EUR 1
  • Starts with as little as one euro of capital
  • 25% of annual profit reserved until it reaches EUR 25,000
  • Same tax treatment as a GmbH
  • Carries a visibly smaller-company signal

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