Hey Axel, I don't have any plans of starting a company. However, it's so awesome that you are sharing your experience for everyone. Really appreciate this. Insightful too even for a casual watcher like me. Keep rocking 👍
Hello Alex, very useful video! I would like to learn more about mandatory following cost for running GmbH ( such accounts monthly fee, annual reports fee etc.) Can we expect video on this in future? This can help people to understand at which point they should move their business into LLC. Thanks
Thank you. Very nice and useful video. I’m trying to start one here and it is frightening. It really seems like a giant wall. And there is very little information in English about this. So thank you.
Pretty interesting. Thank you! One question, how much fund do you need to open a GmbH? You mentioned 12.5k and 25k. What is the difference? Thank you again! :)
Great question. A GmbH has a stock capital of 25.000€. When founding the GmbH you need to put in at least 50% of the stock capital, so 12.500€. With that minimum 12.500€ the GmbH can also pay for its own funding costs of about 1.000€ for notary, registry court, licences, etc.
Great video, it has some answers I was looking for. Maybe you could consider another video explaining what does happen if the GmbH does not make profit for x amount of years. Is the Finanzeamt going to give us any problems, or are there any regulations towards not profitable business?
You might want to talk to a professional tax advisor about this as it sounds you have something specific in mind. Feel free to reach out & we will connect you with an English-speaking tax advisor.
@@PerFinEx I would also like to ask a few questions to English speaking consultant regarding Freelancing. Can I have a contact of English speaking tax professional?
Correct me if I'm wrong.. But dividends are NOT tax deductible, so you pay trade tax + corporate tax and then 25% (or about 48%) instead of 25%. Am I missing something?
Thanks for explaining this. Very useful content. I do have a couple of questions. If someone leaves current job and work as a full time freelancer in IT profession. How to start ? What are the legal formalities I should do before starting? If I start as a freelancer do I loose the social security?
Damn, forming a business in Germany is expensive. Alternatively, I'm thinking of forming my llc in the US, it seems much easier and a lot cheaper. Would I need to pay any taxes here in Germany?
Yes, but then you have to register the trademark as a natural person. Meaning you either have to sell it to your business later on or you lease it to your business. It's best to discuss this with a professional tax advisor.
@@PerFinEx thank for you quick reply? Can someone out of EU(and non eu citizen) also register a company through the same process? Or is there a direct process in this case
Nice information, can a long term EU resident in another EU country come to Germany and register a GmbH and operate a business there in Germany? Or i will need to get an authorization first to own a company in Germany
Hi I have a question, lets say I formed a logistics transport company with my partner and put in 25.000euros. Can I later use this 25.000 for business expenses such as, leasing or renting of vehicles, driver salaries etc. Thank for the video and answer
I live in San Francisco, and it has gotten very difficult for small business owners due to street crime...is it safe to run a small specialty bar business in Germany?
![4 Steps To Start A Small Business In Germany [Side Hustle]](/img/1.gif)
Thanks so much Axel, nice execution and clarity on this very intimidating process as an english speaker living in Berlin
Thanks Axel! This is exactly what I was looking for! Very informative. Great work.
Good Video , the Best I habe ever Heard about the Subject !! Keep going more details about all points
Thanks for sharing your experience Axel. It's always comforting to hear a German frustrated about all the bureaucracy.
While starting the GmbH I always felt like Asterix & Obelix here: ruclips.net/video/TM9xZSJO4is/видео.html
/ Axel 😂
super hard I think Germany doesnt look like the place to open a business
Hey Axel, I don't have any plans of starting a company. However, it's so awesome that you are sharing your experience for everyone. Really appreciate this. Insightful too even for a casual watcher like me. Keep rocking 👍
Thank you very much! Glad you like our GmbH in Germany video. 👍
Great work Axel, this is a great video
Pretty thorough and insightful. Thanks for sharing.
Thank you for watching our GmbH in Germany video! ☺
Quite a different and very interesting topic! Thanks!
Glad you enjoyed our GmbH in Germany video!
Hello Alex, very useful video!
I would like to learn more about mandatory following cost for running GmbH ( such accounts monthly fee, annual reports fee etc.)
Can we expect video on this in future? This can help people to understand at which point they should move their business into LLC.
Thanks
The running costs of your GmbH are highly dependant on the revenue you're making, your tax advisor, etc. You can probably expect +3000€/year.
Awesome one
Thank you. Very nice and useful video. I’m trying to start one here and it is frightening. It really seems like a giant wall. And there is very little information in English about this. So thank you.
Pretty interesting. Thank you!
One question, how much fund do you need to open a GmbH? You mentioned 12.5k and 25k. What is the difference? Thank you again! :)
Great question. A GmbH has a stock capital of 25.000€. When founding the GmbH you need to put in at least 50% of the stock capital, so 12.500€. With that minimum 12.500€ the GmbH can also pay for its own funding costs of about 1.000€ for notary, registry court, licences, etc.
Great video, it has some answers I was looking for. Maybe you could consider another video explaining what does happen if the GmbH does not make profit for x amount of years. Is the Finanzeamt going to give us any problems, or are there any regulations towards not profitable business?
The same for sole traders in Germany.. as a non German speaker in Germany I cannot find any related information anywhere in English...
You might want to talk to a professional tax advisor about this as it sounds you have something specific in mind. Feel free to reach out & we will connect you with an English-speaking tax advisor.
@@PerFinEx I would also like to ask a few questions to English speaking consultant regarding Freelancing. Can I have a contact of English speaking tax professional?
Correct me if I'm wrong.. But dividends are NOT tax deductible, so you pay trade tax + corporate tax and then 25% (or about 48%) instead of 25%. Am I missing something?
Do you have any video on formation of UG? Or would the steps would be almost same as GmbH?
UG and GmbH ist the same from the formation process. The UG has one additional step later on when you transition it to GmbH.
@@PerFinEx Thank you 🙏
Really appreciated very nice
Thanks for explaining this. Very useful content.
I do have a couple of questions.
If someone leaves current job and work as a full time freelancer in IT profession. How to start ? What are the legal formalities I should do before starting? If I start as a freelancer do I loose the social security?
You probably want to run your individual situation with a tax advisor to make sure everything is correct and as you want it to be.
Damn, forming a business in Germany is expensive. Alternatively, I'm thinking of forming my llc in the US, it seems much easier and a lot cheaper. Would I need to pay any taxes here in Germany?
Yes. Look up German permanent establishment rules. You will need to register the US company with the German tax office
Can you protect a brand that you plan on using, but you don't yet have a registered business?
Yes, but then you have to register the trademark as a natural person. Meaning you either have to sell it to your business later on or you lease it to your business. It's best to discuss this with a professional tax advisor.
@@PerFinEx Makes sense now. Much appreciated reply. 👍
how much did it cost u approximately to open and register the company
?
A little below 1.000€ which the company paid for itself with the initial 25.000€ capital.
@@PerFinEx thank for you quick reply? Can someone out of EU(and non eu citizen) also register a company through the same process? Or is there a direct process in this case
Yes, that's possible as long as you come to the notary once to create your company.
Nice information, can a long term EU resident in another EU country come to Germany and register a GmbH and operate a business there in Germany? Or i will need to get an authorization first to own a company in Germany
Hello Alex, Would you be able to share your tax advisor id, or company name. I am having a problem selecting the right advisor. Thank you.
dirk@perfitax.de or perfitax.de
So it means if we want to start our business in Germany we need to register to gmbh
Is it the German version of LLC ?
Germany has different types of businesses (e.g. solo entrepreneur). If you want a LLC, then register a GmbH or UG (Mini GmbH).
Hi I have a question, lets say I formed a logistics transport company with my partner and put in 25.000euros. Can I later use this 25.000 for business expenses such as, leasing or renting of vehicles, driver salaries etc. Thank for the video and answer
Yes, you can use the 25k€ immediately for the business. You can just not transfer it back to your private bank account.
@@PerFinEx hmmm can you pay yourself a large salary ?
Hi!
If it is Amazon shop, what type of business is it?
It depends how you want to register the business. You probably have multiple options. A tax advisor can help you find the right option for you.
Protect your business if you want you be all over Germany 🇩🇪 #yuhhurdme
Word!
😂😂😂😂hahaha legedo
I live in San Francisco, and it has gotten very difficult for small business owners due to street crime...is it safe to run a small specialty bar business in Germany?
It depends on the city, street, etc. Check out crime statistics for further insights. 👍