Set-up in Germany

In recent years, it has gradually become easier to set up a company in Germany, as many obstacles in the German legislation have been eliminated step by step. Dantax makes it even easier for you  – not least when it comes to choosing the right form of company. As specialists in the field of setting up companies, our consultants know all the tax details, advantages and disadvantages of the different forms of company.

It does not matter to which sector your company belongs, Dantax can advise you on setting up a company and ensure the most flexible and trouble-free start-up in Germany. At the same time, we are at the forefront of the wave of digitalisation that is currently gaining momentum throughout Germany.

Example of a GmbH: marketing or sales company

A little information about the organizational structure – overall, a GmbH subsidiary can have  two functions. Legally, they are the same and are treated in the same way regarding tax and dividends.

On the one hand, the GmbH can operate as a marketing company that handles the Danish/Scandinavian parent company’s interests in Germany, for example at trade fairs. The marketing GmbH therefore represents the Danish/Scandinavian company in Germany, but does not have a separate sales function and may have employed German staff for marketing . On the other hand, it may be advantageous from a strategic perspective for a Danish/Scandinavian company to act through a German GmbH.

Another function is that of  an actual sales GmbH, which buys the product from the parent company in Denmark/Scandinavia (or elsewhere in the world), imports it and sells it again on the German or other markets.

Tax differences

In principle, the two GmbH companies are subject to the same tax treatment, but the transfer pricing situation in relation to the parent company is different. The functions performed by a marketing GmbH are different to those performed by a sales GmbH, and therefore the transfer pricing situation is different. The sales company may incur higher costs, which may entail a higher amount of tied-up capital, because it buys – and perhaps owns – the goods before they are resold.

The German GmbH may even take over certain guarantee functions for the foreign parent company, as there are German companies which will ONLY execute transactions with a German GmbH. This problem can be resolved by setting up a sales GmbH.

These are just examples – in practice there are also other options and combinations of forms of company – e.g. GmbH & Co. KG.

Together we will find the right solution!

 

 

 

Skattekonsulent, internationale skatteforhold
+49 461 700 35 12
Lars Eriksen
Skattekonsulent, internationale skatteforhold
+49 461 700 35 12

 

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