What does GmbH Stand for? Part I

A GmbH is a limited liability company. This means that a GmbH combines on the one hand the sensible limitation of liability and on the other hand that with manageable administrative costs. This form of society is therefore very popular and therefore quite widespread.

How is a GmbH founded?

As simple as the principle is, establishing a GmbH is not an easy thing. Three important steps are necessary for this: on the one hand, a pre-founding company must be brought into being. However, this is already associated with liability risks.

This is followed by a preliminary GmbH, which consists of a kind of intermediate stage until the actual GmbH can be founded. Only now does the entry in the commercial register take place and the limited liability company is fully established.

With this entry, the GmbH also has to assume liabilities, which, however, must not exceed the total assets of the company. This is followed by further registrations with the tax office, trade office and chamber of industry and commerce, but these have no influence on the actual activities of the GmbH.

According to SPORTINGOLOGY.COM, everyone who wants to set up a GmbH needs equity capital of at least 25,000 euros. The company is a corporation and, as already mentioned above, it is only liable up to this amount.

In order to be able to found a GmbH, one or more shareholders are necessary. This person or persons must be appointed by a notary public by means of a notarized articles of association . The company is either represented by one or more managers; these are determined by the shareholders and are also subject to their instructions.

In the contract for the managing director, some rights and obligations must be properly listed, among other things, it is about who the contract was concluded between. Furthermore, a specific decision must be made as to when the activity of a managing director begins and he must be made aware of the rules of procedure.

All duties and rights must be listed in detail, the managing director is also liable in the event of a neglected duty and specifications on working hours and place of work can be made. Of course, vacation entitlement must also be regulated and the conditions attached to any additional work.

In order to be able to fill out a management contract, a sample form is sufficient, which can then be adapted in each case. Of course, in order to have it finally come into effect, a lawyer should be entrusted with the examination.

What does it cost to found a GmbH?

The old cost laws still existed until 2013, but they dated back to 1936. The legislature has therefore properly imposed an all-round blow and costs have been adjusted. Since these mostly differed considerably from state to state, it was now ensured that uniform costs were incurred.

Since then, value regulations and fee tables have become a lot easier to read and understand, and fees have also become more performance-related.

Since a GmbH always has a share capital of at least 25,000 euros, the only difference between the calculations is whether one or more shareholders are involved. Here, the basis for a calculation is the item value. The higher this is stated, the higher the costs.

If a GmbH is founded by a single person, this person has to pay 1.0 times the fee. If there are several shareholders, a 2.0-fold fee applies. Since a managing director must also be listed, a fee of 250 euros is charged if the share capital does not exceed 25,000 euros.

At a glance

Since a GmbH is the most popular form, it can be seen at a glance what is necessary for this. This company can be founded by just one person or by several. There must be a share capital of at least 25,000 euros, half of which must be available and paid in from the start. The formal requirements for a GmbH are high, but only the sum of 25,000 euros can be accepted.
The individual steps to become a GmbH are, first a partnership agreement must be drawn up. This is followed by an appointment with a notary, during which the entire content of the contract is read out according to the shareholders present so that any objections can be made.

This is then followed by the signature so that the notary can also certify the contract. Before the commissioned notary can complete the registration in the commercial register, he needs proof that the money has also been paid in as a capital contribution. This is best done on the business account of the GmbH.

The partnership agreement must contain a few things, including the company name, the registered office of the company, the purpose of the company and the amount of the share capital. Furthermore, it should show the number and nominal amounts of the shares that the shareholder (s) have deposited as a contribution.

This contract comes from each of the partners, the surname and first name, with place of residence and date of birth. This is followed by the nominal amount with the serial numbers of the respective share.

limited liability company 1