GmbH
German/Austrian LLC
- What it is
- A limited liability company in the German legal tradition
- Where it applies
- Germany, Austria, Switzerland and related jurisdictions
- Distinctive feature
- Minimum share capital and notarial execution are required
- What is required
- A director, a registered address, accounting and reporting
- An important nuance
- Registering a company does not equal the right to live in the country
In plain words
A GmbH is a limited liability company in the German legal tradition, used in Germany, Austria and related jurisdictions. Put simply: the local equivalent of a limited company, but with a more formalised procedure for setting it up and a stricter reporting culture.
The form has two characteristic features. The first is the requirement for minimum share capital: the amount is set by the country’s law and is paid in on formation. The second is notarial execution: the constitutional documents are certified by a notary, and this is a mandatory step, not a formality. After that the company must keep accounts and file reports under local rules.
For immigration purposes it is important to understand the boundary. Registering a company does not in itself give the right of residence. In business immigration routes the company is a tool, but what is assessed there is something else: the reality of the activity, the business plan, jobs, the economic effect for the country. A paper company with no activity does not pass this check.
Why a GmbH is set up
What is required to set it up
- Minimum share capital
- Paid in on formation
- Proof of payment
- Notarisation
- Entry in the register
- Constitutional documents
- Director
- Members and shares
- Beneficial owners
- Accounting
- Annual reporting
- Tax registration
How formation works
- 01Preparing the documents and the name
- 02Notarisation
- 03Paying in the share capital
- 04Registration in the register
- 05Tax registration and starting work
What you need to know
- Notarial execution is mandatory
- Minimum share capital is required
- Accounting and reporting are kept strictly
- Company details are entered in a public register
- A company does not replace immigration status
Common mistakes
- Expecting the company to give a residence permit automatically
- Underestimating the cost of accounting and support
- Registering a company without a business plan
- Not allowing time for notarial procedures
- Ignoring local reporting requirements
What this means for a BRIDGES client
In business immigration we start not with registering a company but with the programme’s requirements: what exactly is assessed and what activity counts as genuine. We then set up the company to meet those requirements — this saves both money and time.
Frequently asked questions
01 /What is a GmbH?
A limited liability company in the German legal tradition — the local equivalent of a limited company in Germany, Austria and related jurisdictions.
02 /Is share capital needed?
Yes, the form requires minimum share capital, the amount of which is set by the country’s law and paid in on formation.
03 /Is a notary mandatory?
Yes. The constitutional documents are certified by a notary — a mandatory step in the procedure, not a formality.
04 /Does a GmbH give a residence permit?
No. They are separate procedures. Business immigration routes assess genuine activity, not the mere fact of registration.
05 /How much does running the company cost?
It depends on the country and scale: accounting, reporting, tax support, a registered address. These costs are calculated before registration.
06 /Are the company’s details public?
The main information is entered in a public register. The extent of disclosure depends on the particular country.
See also
Read next
This material has undergone editorial review by BRIDGES.
Thinking about business in Europe?
We will work through the route’s requirements and tell you what the company should be like to pass the check.