INTRODUCTION

It is interesting to know that a foreign citizen shall register their company in another country. A Company is a separate legal entity that has to be registered in a country in order to get nationality to its Company. An Entrepreneur shall choose any country to register a company and start its business. Some Countries allow entrepreneurs from other countries but some countries don't allow them. It depends on the municipal law of that nation. In this blog, let's discuss the company registration procedure in Germany and the USA, particularly focusing on business registration requirements for foreign investors.

REGISTRATION OF A COMPANY IN GERMANY

For entrepreneurs, starting a company in Germany is the greatest option. The Location of Germany is in the center of Europe, so if we start a business in Germany, then the business will reach the entire European Continent. Various European Countries can access through different modes of Transport. The German government assists in giving firms the training they need to perform a variety of tasks. Entrepreneurs and investors find it simple to register their businesses in Germany due to the country's business-friendly climate. Starting a company in Germany as a foreigner has become increasingly popular due to these advantages. In order to register a Company in Germany, there are few steps to be followed.

SELECTING A LEGAL STRUCTURE

Before the Initiation of the process, the entrepreneur should choose the legal structure of his business he wishes to undertake. In Germany, there are several different types of legal structures, including sole traders, branches, German limited liability partnerships, German joint stock companies, and limited liability companies (GmbH). Forming Branches are the most common type of Legal structure when a foreigner tries to enter the German Market.

ARTICLES OF ASSOCIATION

Every Entrepreneur who aims to incorporate a Company in Germany should have framed the Articles of Association specifying the name of the company, place to be incorporated and the details of the shareholders, details of the shares and nature of the liability. Other supporting documentation, such as copies of passports, signature samples, a local bank account, a company registration form, etc., must be gathered in addition to the articles of association. In Germany, the business owners are required to have all of their paperwork notarized by a public notary.

MINIMUM CAPITAL REQUIREMENTS

A German joint stock corporation needs to have at least 50,000 EUR as share capital in order to be formed. To establish a private limited company, a minimum of 25,000 EUR in share capital is needed.

DIRECTOR AND SHAREHOLDER:

When starting a firm in Germany, you must have at least one stakeholder. Shareholders might be either individuals or corporations. A corporation needs at least one director, regardless of country. The director may be an individual or a business. A person of any nationality may serve as both a director and a shareholder.

LOCAL ADDRESS:

The company's registered office must be located locally. Before submitting an application for company registration, an entrepreneur should have a physical registered address and a location in Germany where they can conduct business.

BANK ACCOUNT:

The proprietor of the company must also create a bank account in Germany. When registering the business, \ the entrepreneur is required to submit the bank account information. To open a bank account, the director or a representative of the company needs to travel to Germany.

GERMAN COMMERCIAL REGISTER

The district court manages the German Commercial Register. It is accessible to the general public and free of charge. Businesses can also access the Germany Commercial Register online through the Common Register Portal of the German Federal States. The firm is formally recognized as a legal entity after its name is added to the Germany Commercial Register. To register the business in the Germany Company Registry, the entrepreneurs need to get in touch with a notary, who will then submit a certified electronic form. As part of the establishment process, the company name is entered into the German Commercial Register. The registration won't be effective until the company's name appears in the German Commercial Register.

REGISTRATION OF A COMPANY IN USA

The USA is the most developed one for carrying out any business activity. Starting a company in USA as a foreigner is a popular choice for international entrepreneurs. Anybody can start a new business if they follow the appropriate steps.