Formation of a subcompany. With the establishment of a subcompany a legally independent company unit is created. The legal basis of the process depends on the form of organisation you have chosen. The subcompany operates under its own name and is obligated to prepare independent financial statement. The establishment regulations, the registration of the business and the registration in the Commercial Registry conform to the particular German law and need to be consid- ered by the foreign incorporator. Individual enterprises, business partnerships and capital companies can be considered as forms of organisation. It depends on the par- ticular preferences of the incorporator in re- spect of the costs, the liability, the administra- tion effort and the investment of other persons as to which form of organisation is the right one. Although the foundation of a corporation impli- xxxxx several legal requirements it is particu- larly important due to the limitation of liability for the invested capital and the possibility of founding it by only one associate. On the one hand there is the limited liability company (Gesellschaft mit beschränkter Haf- tung – GmbH) and on the other hand the stock corporation (Aktiengesellschaft – AG) As the limited liability company is the most simple and least intricate form of a corporation in Germany and furthermore the embodiment is very flexible, the formation of a limited liabil- ity company shall be illustrated below.
Formation of a subcompany. By founding a subcompany a legally inde- pendent company unit comes into existence. The legal basis for this depends on the form of organisation you have chosen. The subcom- pany operates under a certain name and pre- pares financial statements by itself. The estab- lishment regulations, the registration of the business and the registration in the Commer- cial Registry conform to the particular German law and they also have to be considered by the foreign incorporator. Individual enterprises, business partnerships and capital companies can be considered as forms of organisation. It depends on the par- ticular preferences of the incorporator in re- spect of the costs, the liability, the administra- tion effort and the investment of other persons as to which form of organisation is the right one. Corporations are especially important due to the limitation of liability for the invested capital and because of the possibility of the formation by only one associate. On the one hand there is the limited liability company (Gesellschaft mit beschränkter Haf- tung – GmbH) and on the other hand the stock corporation (Aktiengesellschaft – AG) As the limited liability company is the most simple and least intricate form of a corporation in Germany and furthermore the embodiment is very flexible, the formation of a limited liabil- ity company shall be illustrated below.
