Insights

In Germany, businesses generally must prepare annual financial statements, including a balance sheet and profit/loss statement, with exceptions for smaller entities and varying requirements based on company type and international operations.

In Germany, GmbH managing directors face both internal liability to the company for failing in their "diligent businessman" duties, and external liability to third parties in specific cases like unpaid taxes or misrepresentation.

Germany's 2008 GmbH reform separated the registered office from the administrative headquarters, creating distinct legal and operational address requirements with strict notification rules.

To register a German GmbH, one must define company essentials, notarize the articles, pay in share capital, and then the notary registers it with the Commercial Register.

Germany's business legal forms primarily differ by liability: partnerships have unlimited liability, while corporations offer limited liability, each with unique capital and management structures.