Choosing the right legal structure for your business in Germany has personal, financial, tax and legal consequences. The two basic structures are shown below:
Sole proprietorships and partnerships are mainly divided into the following types of businesses:
Types of corporations with limited liability include mainly the following:
The most advisable structure for establishing a subsidiary in Germany is a limited-liability corporation, particularly in the form of a Gesellschaft mit beschränkter Haftung (GmbH).
A German GmbH is the equivalent to an American limited liability company (LLC) or a private company limited by shares (Ltd.) in the UK.