Digital GmbH incorporation: Everything you need to know about the new online notary appointment

The option to incorporate a limited liability company (GmbH, UG etc.) online finally arrived in Germany. This means that the in-person notary appointment will no longer be mandatory to form a company in Germany. But, will this step towards digitalisation make life easier for founders? Find out here. We’ve put together a brief introduction to the upcoming online formation and the new draft law that is making it possible.

 

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Contents

 

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Andreas Munck

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Got questions about setting up a business in Germany?

  • Startup expert
  • 10+ years experience

Hi, I’m Andreas and I’ve been advising businesses in Germany for over a decade. I’d be happy to call you and answer any questions you have in a one-on-one consultation.

 

When can I start using the new online notarial procedure?

The roll-out was 1 August 2022.

Back in February 2021, a draft law for a notarial online procedure for limited liability companies (ie GmbH, UG etc.) formations was passed by the Federal Cabinet. The new law means that founders no longer have to appear in person for notarial certification. Other applications to the commercial and cooperative registers will also be affected.

 

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What’s new about the online notary appointment?

With the upcoming online notary appointment for the formation of a GmbH, it will be possible to do digitally what was previously only possible in-person at a notary’s office. The most important innovations are:

  • The notary appointment will be held as an online video conference.
  • Digital identification of shareholders and managing directors
  • Electronic signatures of the shareholders and managing directors

In this way, founding teams can enter their companies in the commercial register from anywhere and receive advice from the notary via a video call.

You can find out everything else about the notary appointment for company incorporation here .

Which legal forms can use this new notary digital service

According to the draft law, the following registrations in the commercial and cooperative register will be possible online:

  • Kapitalgesellschaften (incorporated companies like UG, GmbH etc.)
  • Genossenschaften (cooperatives)
  • Einzelkaufleute (sole traders)
  • Zweigniederlassungen (branches)

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Will incorporation still be possible the old school way?

Yes. The notarial online procedure is only to be understood as a supplementary offer. The on-site notary appointment can still be used.

 

What steps are involved in the online notary appointment?

  • Registration via a free smartphone app
    • eID function of the identity card (Personalausweis)
    • Reading of the photo from the chip in the passport/identity card
  • Exchange of information and documents with the notary
  • Notarisation via video conferencing
  • The signing of documentation with an electronic signature (provided by the system)

 

[BEGIN: Insert an Image between this tag]

Andreas Munck

[END insert Image]

Got questions about setting up a business in Germany?

  • Startup expert
  • 10+ years experience

Hi, I’m Andreas and I’ve been advising businesses in Germany for over a decade. I’d be happy to call you and answer any questions you have in a one-on-one consultation.

 

What are the requirements for the online notary appointment?

  • Computer (desktop/laptop) with camera and microphone
  • Fast and stable internet connection (DSL, LTE, cable, etc.)
  • A smartphone that can read eID and photos
  • Acceptable proof of identity:
    • German identity card
    • German eID card
    • Electronic residence permit with activated online ID function incl. personal PIN
    • European eID with a “high” security level
  • Acceptable ID for photo comparison:
    • Readable passport (CAN procedure)
    • Readable official ID card (CAN procedure), eg a German ID card of the latest generation

 

What are the additional costs for the online procedure?

There are only minor additional costs for the digital notary appointment:

  • €25 per certification procedure
  • €8 per certification procedure

The other items of the notary fees remain the same and are also fixed by law.

 

Why was the new law passed?

The Federal Ministry of Justice and Consumer Protection (Justiz und für Verbraucherschutz) had drafted the “Act on the Implementation of the Digitalisation Directive (Gesetz zur Umsetzung der Digitalisierungsrichtlinie, or DiRUG)” to transpose the requirements of Directive (EU) 2019/1151 into German law.

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What are the advantages of the new online procedure for founders?

  • May speed up the company formation process
  • No need to be physically present at a local notary’s office
  • No need to travel to Germany for international founders
  • Workaround for travel restrictions
  • Increases attractiveness of Germany as a location for founders

Source: Bundesnotarkammer (Federal Chamber of Notaries)

Note: The notary appointment is step #8 of the company formation process in Germany. Find out the other 22 steps here.

[BEGIN: Insert an Image between this tag]

Andreas Munck

[END insert Image]

Got questions about setting up a business in Germany?

  • Startup expert
  • 10+ years experience

Hi, I’m Andreas and I’ve been advising businesses in Germany for over a decade. I’d be happy to call you and answer any questions you have in a one-on-one consultation.

 

The Master list of all Company Formation articles can be found here.

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