Can a non-resident form a GmbH in Germany?
Partially — Germany typically requires in-person presence or a local representative. As of 2026, the path looks like this for a non-resident founder:
Step-by-step process
- Choose your entity type. Most non-residents pick a GmbH — the Germany equivalent of an LLC / private company.
- Engage a local agent / corporate service provider. Required in many jurisdictions; expect to pay $300-$1,500 for full setup assistance.
- Reserve a company name with Germany's business registry.
- Submit incorporation documents: articles of association, director/shareholder details, registered address.
- Pay state filing fee: approximately $850.
- Deposit minimum paid-up capital: $13,500. This sits in the company's account.
- Receive certificate of incorporation in approximately 14 business days.
- Open a business bank account (see banking accessibility 9/10 below — this is often the harder step).
- Register for tax with Germany's tax authority. VAT/GST may apply at 19%.
Real cost beyond the filing fee
| Item | Typical cost (USD) |
|---|---|
| Government filing fee | $850 |
| Annual maintenance fee | $350 |
| Minimum paid-up capital | $13,500 (refundable) |
| Local agent / formation service (one-off) | $300–$1,500 |
| Bank account opening (third-party fees) | $0–$500 |
| Accounting / tax filing (annual) | $500–$3,000/yr |
Banking — the real chokepoint
Germany's business banking accessibility is 9/10. Most online and traditional banks accept non-resident-owned companies. Mercury, Wise, Revolut Business, and local banks are workable.
Tax implications
- Corporate income tax in Germany: headline 30%. 15% corporate tax + 5.5% solidarity surcharge + 14-17% trade tax = ~30%.
- VAT/GST: 19% — applies if registered for VAT (thresholds vary).
- Dividend / withholding tax: when profits are distributed to non-resident owners, withholding tax usually applies. Tax treaties can reduce it.
- Home-country tax: your country may apply CFC (controlled foreign company) rules. Many countries do. Check before incorporating.
When Germany makes sense for non-residents
Germany is commonly chosen by non-residents for: DACH market, Industrial businesses. For comparison with a US LLC, see Germany vs USA. For US-specific tax math, use our non-resident US LLC tax calculator.