General customer information
Information over different types of German companies and the resulting areas of responsibility and liability:
-> Corporate structures
Description of type:
AG Aktiengesellschaft:
– translates to "stock company". All publicly traded companies in Germany must be incorporated under this legal structure, but not all AGs are necessarily publicly traded. AGs have two sets of boards - the Vorstand, which usually consists of the CEO, CFO and other top management, and an Aufsichtsrat, which translates to "supervisory board," which has the function of overseeing management and representing the shareholders. German law prohibits individuals from being members of both boards. AGs in Germany require a minimum of € 50,000.00 share capital and at least five shareholders at incorporation. Minimum par value for shares is ? € 1,00. e.V. eingetragener Verein is a non-profit society or association.
GbR Gesellschaft bürgerlichen Rechts
– is a partnership without a legal name. Mainly used for non-commercial purposes. Partners have full liability.
GmbH & Co. KG:
is similar to a KG, but the entity with unlimited liability is a GmbH instead of a person.
GmbH (Gesellschaft mit beschränkter Haftung):
– translates to a "company with limited liability". A GmbH indicates that a company is incorporated, but is not publicly traded (as public companies must be AGs). GmbHs are essentially partnerships without a legal name, and there usually must be at least two partners, although GmbHs with one partner are possible. There must be nominal capital of at least € 50,000.00 Most foreign subsidiaries in Germany are incorporated with this structure.
KG (Kommanditgesellschaft):
– is a partnership under a legal name. There must be at least two partners, at least one limited and at least one unlimited.
KGaA (Kommanditgesellschaft auf Aktien):
– is a limited partnership that has shares. OHG Offene Handelsgesellschaft is a partnership with a legal name, and must have at least two partners. Partners have unlimited liability.
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-> Corporate structures
Description of type:
AG Aktiengesellschaft:
– translates to "stock company". All publicly traded companies in Germany must be incorporated under this legal structure, but not all AGs are necessarily publicly traded. AGs have two sets of boards - the Vorstand, which usually consists of the CEO, CFO and other top management, and an Aufsichtsrat, which translates to "supervisory board," which has the function of overseeing management and representing the shareholders. German law prohibits individuals from being members of both boards. AGs in Germany require a minimum of € 50,000.00 share capital and at least five shareholders at incorporation. Minimum par value for shares is ? € 1,00. e.V. eingetragener Verein is a non-profit society or association.
GbR Gesellschaft bürgerlichen Rechts
– is a partnership without a legal name. Mainly used for non-commercial purposes. Partners have full liability.
GmbH & Co. KG:
is similar to a KG, but the entity with unlimited liability is a GmbH instead of a person.
GmbH (Gesellschaft mit beschränkter Haftung):
– translates to a "company with limited liability". A GmbH indicates that a company is incorporated, but is not publicly traded (as public companies must be AGs). GmbHs are essentially partnerships without a legal name, and there usually must be at least two partners, although GmbHs with one partner are possible. There must be nominal capital of at least € 50,000.00 Most foreign subsidiaries in Germany are incorporated with this structure.
KG (Kommanditgesellschaft):
– is a partnership under a legal name. There must be at least two partners, at least one limited and at least one unlimited.
KGaA (Kommanditgesellschaft auf Aktien):
– is a limited partnership that has shares. OHG Offene Handelsgesellschaft is a partnership with a legal name, and must have at least two partners. Partners have unlimited liability.
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