Insights
Liability of Managing Directors in Germany
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.
Difference of seat, address and place of management
Germany's 2008 GmbH reform separated the registered office from the administrative headquarters, creating distinct legal and operational address requirements with strict notification rules.
Formation of a GmbH
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.
Legal forms of doing business in Germany
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.