Set up a UG in Berlin

Your bank appointment will most likely take place at the nearest branch in Berlin. You will need to bring the following documents with you:

• A valid identity card or passport
• A registration certificate, if applicable
• All notarised copies of the certificate of incorporation

Get the low-down about opening a business bank account in Germany here.

A business can be a natural person or a legal person - i.e. an incorporated entity such as a public limited company (Aktiengesellschaft), limited liability company (Gesellschaft mit beschränkter Haftung), registered cooperative (Genossenschaft) or association (eingetragener Verein), limited partnership (Kommanditgesellschaft auf Aktien).

The following persons are resposible for registering a business

• Sole proprietorship: The individual who is the sole trader
• Partnership (e.g. OHG, GbR): The managing partners
• Limited partnership: Each personally liable shareholder and the limited partners that possess management authority
• Corporations (e.g. AG, GmbH, UG): The designated legal representative

Required documents

• Identity card or passport with last registration certificate.
• Extract from the commercial register (Handelsregister) - if an incorporated entity e.g. GmbH, AG, registered trader, UG, etc.
• Contracts/agreements
• Handwerkskarte (a craft card for craft activities)

You will receive a notification of the business registration from the following places:

• the relevant tax office (zuständige Finanzamt),
• the Chamber of Commerce (Handelskammer) or the Chamber of Crafts (Handwerkskammer),
• the Employer's Liability Insurance Association (Berufsgenossenschaft),
• the Department of Occupational Health and Safety (staatliche Amt für Arbeitsschutz).

This notification does not replace a specific notification requirements for individual bodies. In particular, in the case of craft enterprises, a direct registration with the Chamber of Crafts is still required.

The entry in the Handelsregister does not replace/contain the notification according to § 14 GewO (obligation to notify). The trade must therefore be registered (and therefore also deregistered) separately at the responsible district office.

Some commercial activities require a permit that are subject to approval and have additional prerequisites. Find out at an early stage which requirements you have to fulfil in order to be able to become active in your desired enterprise.

Timelines

You must register your business immediately at the time of setting up. A fine may be imposed for late registrations.

More information

To find out more about how register a German limited liability company check out our article here.

The assessment rate for trade tax in Berlin is 410 percent.

If you're interested in tax optimisation check out our article about company holdding structures here.

Charlottenburg

• Bismarckstr. 48
• 10627 Berlin
• Tel: (030) 9024 13-0
• Fax: (030) 9024 13-900
• Monday, Tuesday, Wednesday 08:00-15:00
• Thursday 08:00-18:00, Friday 08:00-13:30

Friedrichshain-Kreuzberg

• Mehringdamm 22
• 10961 Berlin
• Tel: (030) 9024 14-0
• Fax: (030) 9024 14-900
• Monday, Tuesday, Wednesday 08:00-15:00
• Thursday 08:00-18:00, Friday 08:00-13:30

Neukölln

• Thiemannstr. 1
• 12059 Berlin
• Tel: (030) 9024 16-0
• Fax: (030) 9024 16-900
• Monday, Tuesday, Wednesday 08:00-15:00
• Thursday 08:00-18:00, Friday 08:00-13:30

Prenzlauer Berg

• Storkower Str. 134
• 10407 Berlin
• Tel: (030) 9024 28-0
• Fax: 030) 9024 28-900
• Monday, Tuesday, Wednesday 08:00-15:00
• Thursday 08:00-18:00, Friday 08:00-13:30

✅ Minimal start-up capital required

✅ Limitation of liability

✅ Lower incorporation costs

The formation of an entrepreneurial company (limited liability) - officially called a Unternehmergesellschaft (haftungsbeschränkt) in German - are ideal for entreprenuers who are bootstrapping their businesses. A deposit of just €1 per founder is enough to set up this company type.

It also enables you to protect your own assets. Just as with a GmbH, as a shareholder of a UG (haftungsbeschränkt) you are only liable with the company assets - not with your private assets. This keeps the liability risk for founders as low as possible.

The UG also offers the possibility to use the model protocol (Musterprotokoll) for the company's articles of association when establishing a company. The aim of the Musterprotokoll is to speed up the formation stage so that your company is fully operational as quickly as possible.

The use of the Musterprotokoll also means that the bureaucratic start-up expenses and the start-up costs are lower than if a customised articles of association is used.

Want to know more about the UG? Check out our article here.