GERMAN SHELF COMPANY

Our almost 15 years of experience and why the shelf companies are so popular nowadays.

TABLE OF CONTENT:

Introduction
What is a German Shelf Company?
Types of German Shelf Companies
- GmbH
- AG
Advantages of Acquiring a German Shelf Company
Disadvantages of Acquiring a German Shelf Company
German Shelf Companies and Share Capital
Bank Accounts and Financial Facilities
Legal Aspects of German Shelf Companies
How to Acquire a German Shelf Company
Pricing and Costs of German Shelf Companies
Potential Uses of German Shelf Companies
Tax Considerations and Implications
Due Diligence When Acquiring a Shelf Company
Choosing the Right Shelf Company
Conclusion
FAQs

A German Shelf Company can be an attractive option for businesses and entrepreneurs looking to expand their operations or enter the German market. In this article, we will delve into the world of German Shelf Companies, exploring their types, advantages, disadvantages, and various other aspects that are crucial for a business owner considering acquiring one.

What is a German Shelf Company?

A German Shelf Company, also known as a Firmenmantel in German, is a pre-existing, non-operational company that has been established and registered but has not engaged in any significant business activities. These companies are "shelved" and kept ready for future use, allowing new owners to bypass the lengthy and sometimes complicated process of incorporating a new company in Germany.

Types of German Shelf Companies

There are two main types of German Shelf Companies: GmbH and AG.

GmbH
Gesellschaft mit beschränkter Haftung, or GmbH, is the most common form of a German limited liability company. It offers the advantage of limited liability for its shareholders and is widely used by small and medium-sized businesses.
AG
Aktiengesellschaft, or AG, is a German public limited company that has the ability to issue shares to the public. This type of company is typically used by larger corporations and offers a higher degree of flexibility in terms of share capital and shareholder structure.

Advantages of Acquiring a German Shelf Company

There are several advantages to acquiring a German Shelf Company, such as:

Speed
Purchasing a shelf company allows you to bypass the time-consuming process of setting up a new company from scratch, enabling you to start your business operations almost immediately.
Credibility
A shelf company with a history can potentially provide more credibility to potential partners, clients, and investors.
Ease of Access
A shelf company already has a registered address, bank account, and necessary legal documentation, making it easier to start business operations.

And Disadvantages of Acquiring a German Shelf Company

Some potential disadvantages of acquiring a German Shelf Company include:

Cost
Shelf companies can be more expensive than setting up a new company from scratch.
Liability
Although rare, there may be hidden liabilities or issues associated with the shelf company that may not be immediately apparent.

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