Types of Company

In order to turn the dream into reality, it is necessary to have an idea, a well thought-out concept and also a legal form of enterprise.

After the labor uprisings and revolutions of the last millennium, the most diverse entrepreneurial legal forms, associations and collective structural communities emerged. Since here the way is not the goal, but the goal determines the way, the choice of the legal form is a decisive one.

Free profession

The liberal profession is the independently exercised artistic, scientific, literary, educational or also teaching vocation in profession.
Because it is not a trade in the true sense of the term under German law, it is not subject to the trade regulations and is not subject to trade tax.
The freelance profession is liable with its private assets and should accordingly be well insured.

§19 Small business ( I (me) AG )

The VAT-exempt small business was developed as a stepping stone for job-seeking StartUP entrepreneurs*.
In the first years still generously by the Jobcenters promoted, but badly taught, many of these StartUP's failed, but the legal form remained until today
and enables the committed wealth of ideas the way into freelance independence and into larger legal forms.
 

Cooperative ( see Genossenschaftsgesetz GenG )

This commercial legal form is the practical implementation of the collective thought of the European workers' movement of the last millennium.
Its special feature is that its participants are both owners, service partners and decision-makers in personal union, which is referred to as the cooperative identity principle. All participants have the same rights and obligations and are entitled to vote and participate in profits to the same extent. The principles of self-help, self-responsibility and self-governance apply. In practice, the general meeting decides, delegates to smaller working groups ( AG ) and elects a legal representation in the form of the board.

UG - ( 1 Euro - GmbH )

This legal form is the start-up variant of the GmbH (limited liability company).
The foundation in this country only costs about 200,- Euro, as a start-up contribution one obligatory Euro is sufficient. But there should be enough money in the cash box to be financially liquid for the first months, because the management is obliged to prevent insolvency or to go bankrupt in case of long-term insolvency. The UG is obliged to build up reserves for the share capital, 25% of the profits per year must be retained in order to gradually save up the share capital to 25,000 euros to then become a fully-fledged GmbH.

GmbH ( Limited Liability Company )

This legal form, as a legal entity nationally and internationally highly regarded limited liability company, is the minimum starting capital of 25,000 ( twenty-five thousand ) euros as a starting basis to foot. The foundation as a (one) 1 person company is possible as well as the foundation as a multi person company. In addition, it offers the perfect opportunity for StartUP companies to involve investors without liability risk, with voting shares or as a silent partnership. The GmbH is obligated to balance, to double-entry bookkeeping, calculating profit and loss ( P&L ) and must present its annual financial statements publicly. The salary of the management, one or more persons in joint representation, can be deducted from the tax and good tax advice is strongly advised.
 

gGmbH ( non-profit 'limited liability company' )

The gGmbH is a special form of the GmbH, which exclusively and directly pursues charitable purposes and therefore enjoys tax advantages. Due to the non-profit status, this legal form is not subject to inheritance tax, corporate income tax and trade tax, and the solidarity surcharge is also not applicable.

[ ... to be Continued ]