Starting a Business in Berlin

34 35 Starting a Business in Berlin A Beginner’s Guide written charter has to be established on doing so. Notarial certification is not required; however, the regional federati­ on of cooperatives does check whether the prerequisites of a successful foundation have been met. The cooperative’s leadership bodies (executive board and supervisory board) are made up of its own members. Every cooperative belongs to a statutory auditing association, which carries out a yearly audit at regular intervals to assess the economic situation and compliance of the management. Profile of a eG ls Suitable for at least three business partners ls No Minimum capital required, but regional federation of cooperatives does check whether equity capital is adequate ls Listing in the Cooperative Society Register required ls The company has a legal personality (is a legal entity) ls No personal liability on the part of the partners (in normal circumstances) ls May be managed by an employee ls A company name in the legal sense can be used ls Notification of the regulatory agency (Ordnungsamt) is mandatory and, if required, a licence must be obtained by the executive board WHAT NAME SHOULD I CHOOSE? The importance of choosing the right company name should not be underestimated. Changing your name at a later date, perhaps because it is prohibited under competition law, could not only prove expensive, but also annoy your customers. With this in mind, it is essential to comply with the law, while at the same time finding the best name to promote your company. For further information  genossenschaften.de According to the German Companies Act, a legal reserve must be created in the balance sheet to which one quarter of annual net profit must be transferred after first deducting any loss carried forward from the previous year. This reserve must be built up until the sum of €25,000 is reached and a GmbH is registered. Profile of a UG (haftungsbeschränkt) Suitable for one or more business partners ls Minimum capital of €1 required ls Listing in the Commercial Register required ls The company has a legal personality (is a legal entity) ls No personal liability on the part of the partners (in normal circumstances) ls May be managed by an employee ls A company name in the legal sense can be used ls Notification of the regulatory agency (Ordnungsamt) is mandatory and, if required, a licence must be obtained by the managing director of the UG (haftungsbeschränkt) Registered cooperative society (eG) A cooperative society is always a useful choice whenever the pursuit of an economic goal is more important than the per­ formance of the individuals involved, yet its independent sta­ tus is to be preserved. A jointly operated enterprise helps to promote the economic activity of its members – for example, through a common market presence, to achieve favourable sales and purchasing conditions or make more efficient use of operational facilities and objects. The actual profits are less of a priority. Members of cooperative societies are both owners and customers of their cooperative at the same time. Three founding members are required to set one up, and a CHAPTER 3 Video on how to start Mini-GmbH (UG (haftungsbeschränkt)) or a GmbH in Germany: ihk-berlin.de/legal-form