Introduction of model protocols. For straightforward standard set-ups (involv- ing, inter alia, formation by cash subscription and a maximum of three shareholders), two model protocols requiring notarial recording can be used. Setting up a limited liability com- pany is easier when a model protocol is used. This is achieved primarily as a result of the fact that three documents – the shareholders’ agreement, the appointment of the company director and the list of shareholders – are combined in just one document. Furthermore, using a model protocol to set up a limited liability entrepreneurial company with a small amount of nominal capital leads to a genuine saving of costs, due to a privilege granted under the law governing costs.
Introduction of model protocols. For straightforward standard set-ups (involv- ing, inter alia, formation by cash subscription and a maximum of three shareholders), two model protocols requiring notarial recording can be used. Setting up a limited liability com- pany is easier when a model protocol is used. This is achieved primarily as a result of the fact that three documents – the shareholders’ agreement, the appointment of the company director and the list of shareholders – are combined in just one document. Furthermore, using a model protocol to set up a limited liability entrepreneurial company with a small amount of nominal capital leads to a genuine saving of costs, due to a privilege granted under the law governing costs. 4 Year end closing and audit The limited liability company is obligated to keep accounts. At the end of every year the limited liability company has to draw up a bal- ance sheet as well as an income statement quoted in Euros and in German. In addition the explanatory notes and a management report should be added to these documents. In con- sideration of the principles of adequate and orderly accounting, the year end closing is to give a precise overview of the financial situa- tion and position as well as the result situation which reflect the real circumstances. For mid-sized and big limited liability compa- xxxx it is imperative that a Chartered Account- ant or a certified auditor executes the year-end audit. Furthermore the limited liability company has to fulfil the publicity regulations. Thus small limited liability companies are obligated to submit condensed financial statements togeth- er with compendious notes to the electronic Federal Gazette. Mid-sized companies have to submit to the electronic Federal Gazette a condensed annual balance sheet and profit and loss statement , as well as compendious explanatory notes and a management report as well as a certificate of audit and , if neces- sary, the report of the governing body. Big limited liability companies are obligated to submit the whole year end closing without any abbreviations as well as the certificate of audit and the report of the governing body to the electronic Federal Gazette. Whether an company is small, mid-sized or big depends on total assets, annual sales and the number of employees.
