Legal forms, registration, and associations: Basics for founders
In this module, you will gain a clear overview of the most important legal and organizational steps on your way to founding a company. We start with the legal forms and show you how your choice can affect liability, financing, and team structure. You will then learn how to register your company and what documents you need. We will also introduce you to the most important associations and chambers that founders automatically come into contact with—and explain what role they play for your startup. Finally, we will give you an overview of further information portals that will provide you with reliable support even after the module is over.
The module is aimed at founders who are looking for a practical introduction to the formalities and want to understand the legal basics without getting lost in technical jargon.
⚠️Disclaimer⚠️
The information provided in this document is intended solely for general orientation for founders and startups. It does not constitute legal or tax advice and cannot replace an individual assessment by qualified professionals.
For binding and well-founded decisions regarding legal structures, tax matters, or legal frameworks, you should consult exclusively with certified tax advisors or lawyers.
Why the legal form matters for your startup
When you start a company, sooner or later you’ll have to face the question: Which legal form should my business take? A legal form is essentially the “legal framework” under which your startup operates externally. It determines how your company is organized, who is responsible for what, and how profits or losses are distributed. Sounds like dry legal theory? Maybe – but choosing the right legal form is a decision that can significantly shape your journey as a founder.
Why? Because the legal form has direct impacts on your future decisions and opportunities:
- Liability: Whether you are personally liable with your private assets or whether the risk remains limited to the company.
- Financing: Whether investors can join or whether you initially rely solely on your own funds.
- Team organization: Whether all founders decide equally or clear roles and voting rights are defined.
- Eligibility for funding: Some funding programs or contracts require a specific legal form, such as a GmbH (limited liability company).
- Partnerships: Industry partners and universities often value a stable, professional legal structure.
Especially in the 6G field, these factors play a major role. Many startups in this area emerge from research projects where patents, intellectual property, or university involvement are important. For discussions with industry partners as well, appearing as a GmbH or UG (entrepreneurial company) sends a strong signal – it shows professionalism and builds trust.
The good news: You don’t need to know every detail at the beginning. What matters is that you understand why this decision is so relevant and what direction it sets for your startup. The legal form is not a hurdle but a tool that opens doors – to funding, investors, partners, and to a clear structure within your team.
So: Don’t see the choice of legal form as a tedious obligation, but as a strategic step for the future of your startup.
Below you will find an overview of the legal forms in Germany.
Related videos:
Serlo Education. (2019, 31. Mai). Unternehmensformen einfach erklärt – Rechtsformen: AG, GmbH, UG & Co. [Video]. YouTube. https://www.youtube.com/watch?v=uFfsZA3wnWE
Select legal form
Registration is the starting point for your business activities: only then can you issue invoices, conclude contracts, and build your business professionally. It is therefore the basis for turning your idea into a real company.
Arrange a notary appointment
Notary Appointments – What? Why? What for? Costs?
A notary is a person authorized to certify legal transactions, facts, evidence, and signatures. They also handle the safekeeping of financial deposits. When founding a company, the notary certifies the articles of association or shareholder agreement and registers the company with the commercial register once the required share capital has been deposited.
Preparing for the Appointment
The shareholder agreement should be finalized before scheduling an appointment. It’s advisable to send the documents to the notary in advance so they can review them. Most notaries also offer legal advice on contract-related matters.
The agreement must state, among other things, who will serve as the managing director. You should also provide all documents related to the company formation to the notary. In parallel, founders should arrange appointments for opening a bank account and for notarization to keep the process on track.
Certification of Contracts and Documents
The notary’s main task is to certify the shareholders’ signatures. This includes the articles of association, the shareholder list, and the incorporation protocol. These documents specify who will be appointed as managing director. These decisions should be made before the notary appointment.
Depositing Capital and Commercial Register Entry
Once the share capital is deposited into the business account, the notary can register the company with the commercial register. Proof of deposit can be provided with a simple deposit slip.
Once all required documents are submitted to the notary, the information is forwarded to the district court. The court checks the documents for completeness, including company name and business purpose. If everything is in order, the entry is usually made within 1–2 weeks. You’ll receive a commercial register number, which must be displayed publicly, e.g., on your company’s website.
Important: The commercial register is public. After registration, you may receive fake invoices from directory services. Do not pay these!
Costs
The costs depend on the company’s share capital, number of shareholders, and any additional services provided by the notary. Costs typically arise for:
- Drafting and certifying the articles of association
- Drafting and certifying the managing director appointment
- Drafting and certifying the commercial register application
- Submitting structured data
- Monitoring the share capital deposit
Additional costs include postage and 19% VAT.
Besides notary fees, there are also court fees for the commercial register entry (e.g. for a GmbH).
The table below gives an overview of estimated costs. Please note that actual costs may vary from notary to notary.
Fees for GmbH with one shareholder (EUR) | Fees for GmbH with multiple shareholders (EUR) | |
---|---|---|
Drafting and notarization of articles of association and director appointment | ~€375.00 | ~€384.00 |
Drafting shareholder list and verifying company name with the Chamber of Industry and Commerce | ~€96.00 | ~€96.00 |
Drafting application for the commercial register incl. signature certification | ~€62.50 | ~€62.50 |
Submitting structured data | ~€37.50 | ~€37.50 |
Monitoring share capital deposit | ~€62.50 | ~€62.50 |
Copy and print expenses | ~€10.00 | ~€10.00 |
Postage and telecom flat fee for company formation and register entry | ~€40.00 | ~€40.00 |
Court fees | ~€150.00 | ~€150.00 |
Total | €833.50 | €842.50 |
All notarial costs are subject to 19% VAT.
Sources:
Gründerplattform.de (n.d.): Your notary appointment. Retrieved from: https://gruenderplattform.de/unternehmen-gruenden/notartermin-vereinbaren
Smartlaw.de (2017): GmbH formation – costs and how to save. Retrieved from: https://www.smartlaw.de/rechtsnews/unternehmen-gruenden/gmbh-gruendung-was-sie-kostet-und-wie-sie-dabei-sparen-koennen
Disclaimer:
Despite careful research, we cannot guarantee the accuracy of the information provided. This content does not replace professional advice from the relevant authorities.
Open a business account
Open a Business Bank Account
If you want to start a business, you’ll need a place to manage your finances and future transactions. For this and many other reasons, it’s recommended to open a dedicated business bank account to lay a solid foundation for your venture. Additionally, banks offer extensive advisory and support services.
The market offers a wide range of options with varying conditions—not all of which are suitable for founders. However, we believe a low-maintenance and affordable business current account is part of the basic setup for any entrepreneur or freelancer. It helps manage payments with customers, suppliers, and institutions efficiently and smoothly.
Choose your account based on your business needs
Banking offers can vary widely. Before opening an account, consider what sector you’ll be operating in and what financial transactions matter most to you. You can choose between almost free business accounts at online banks or traditional banks with a physical branch network and ATMs. A key factor is cash handling: if you’re working in sectors like gastronomy, events, or retail, a traditional bank with deposit options may be the better choice.
Pay attention to fees and services
Just like with private banking, there are a few important things to consider. Keep the following questions in mind when researching the right business account:
- What fees apply? For example, transaction fees, cash withdrawals, and deposits.
- Can you get an overdraft facility, and under what conditions?
- Is the fee structure transparent and simple? Are there any extra financial products you don’t need?
- Can you create sub-accounts?
- How long are the stated conditions valid?
Who needs a business account?
For some legal forms, a business account is mandatory. This applies to corporations like GmbH, UG, AG, and limited partnerships (KG). Freelancers and self-employed individuals without special banking needs can decide for themselves. However, separating private and business finances makes things much easier to manage.
Why a business account makes sense
With a separate account, it’s much easier to keep track of your business finances. It helps manage recurring costs like office rent, salaries, social security contributions, tax payments, travel expenses, leasing rates, and loans—all in one place.
Your account statements and transactions should be listed clearly, and you should have both digital and physical access to them.
Requirements and registration
To open a business account, banks require certain documents, including:
- Proof of identity: ID card or passport. Note: If you only have a passport, you’ll also need a registration certificate from your local registration office.
- For non-German nationals: residence permit and documents from the immigration office
- Tax identification number
- Possibly a credit report (Schufa)
- If applicable: business registration certificate
Conclusion: A business account supports you and helps you stay organized
A business bank account supports your core business operations and provides a clear overview of your income and expenses—separate from your personal finances. This saves time and lets you focus on the essentials of your business. It’s not just a convenience but a key strategic tool for managing your company.
Source:
Gründerplattform (n.d.): Open a business account at the start of your venture. Retrieved from: https://gruenderplattform.de/unternehmen-gruenden/geschaeftskonto-eroeffnen
Further reading:
Business account comparisons:
Für-Gründer (n.d.): Business account guide: providers, fees, and services of the best accounts. Retrieved from: https://www.fuer-gruender.de/kapital/fremdkapital/hausbank/geschaeftskonto/
Gruenderkueche.de (2021): Business account comparison 2021: The best options for founders and startups. Retrieved from: https://www.gruenderkueche.de/fachartikel/geschaeftskonto-vergleich-geschaeftskonten-fuer-gruender-und-startups/
Disclaimer:
Despite careful research, we cannot guarantee the accuracy of the information provided here. This content does not replace a professional consultation with a representative of the relevant authority.
Professional associations
Occupational Accident Insurance Providers – Overview
What are occupational accident insurance providers?
Occupational accident insurance providers (Berufsgenossenschaften) are institutions responsible for statutory accident insurance for businesses in the German private sector and their employees. Their primary task is to prevent workplace accidents, occupational diseases, and work-related health risks. If employees suffer a work-related accident or illness, the insurance providers support them with medical, vocational, and social rehabilitation. They also help compensate for financial losses caused by such events. As of 2005, 46.2 million people were insured through commercial and agricultural accident insurance providers in Germany.
Overview of Selected Insurance Providers:
- BG RCI – Raw Materials and Chemical Industry
Kurfuersten-Anlage 62
69115 Heidelberg
Phone: +49 6221 5108-0
www.bgrci.de
Email: info@bgrci.de
(Formed by merging multiple industry-specific providers including mining, chemicals, paper, leather, and sugar industries) - BGHM – Wood and Metal Industry
Isaac-Fulda-Allee 18
55124 Mainz
Free service numbers:
0800 999 0080-0 General inquiries
0800 999 0080-1 Membership and contributions
0800 999 0080-2 Occupational safety
0800 999 0080-3 Medical treatment and rehabilitation
Fax: +49 6131 802-20800
www.bghm.de
Email: servicehotline@bghm.de
(Formed in 2011 from multiple metal and wood industry providers) - BG ETEM – Energy, Textile, Electrical, Media Products
Gustav-Heinemann-Ufer 130
50968 Cologne
Phone: +49 221 3778-0
Emergency hotline: +49 211 30180531
Fax: +49 221 3778-1199
www.bgetem.de
Email: info@bgetem.de
(Formed in 2010 from various industry providers including energy, fine mechanics, textiles, and printing) - BGN – Food and Hospitality Industry
Dynamostraße 7–11
68165 Mannheim
Phone: +49 621 4456-0
Fax: 0800 197755330000
www.bgn.de
Email: info@bgn.de
(Formed in 2011 by merging with the Butchers’ Insurance Provider) - BG BAU – Construction Industry
Hildegardstraße 28–30
10715 Berlin
Phone: +49 30 85781-0
Fax: +49 30 85781-500
www.bgbau.de
Email: info@bgbau.de - BGHW – Trade and Logistics
M 5, 7
68161 Mannheim
Phone: +49 621 183-0
Fax: +49 621 183-5191
www.bghw.de
Email: direktion-mannheim@bghw.de
(Formed by merging providers for retail and wholesale trade) - VBG – Administrative Sectors
Massaquoipassage 1
22305 Hamburg
Phone: +49 40 5146-0
Fax: +49 40 5146-2146
www.vbg.de
Email: kundendialog@vbg.de
(Formed by merging administrative, railway, and glass/ceramic industry providers) - BG Verkehr – Transport, Postal Logistics, Telecommunications
Ottenser Hauptstraße 54
22765 Hamburg
Phone: +49 40 3980-0
Fax: +49 40 3980-1666
www.bg-verkehr.de
Email: info@bg-verkehr.de
(Merged in 2016 from transport and postal/telecom providers)
Tübingen Office:
Europaplatz 2
72072 Tübingen
Phone: +49 7071 933-0
Fax: +49 7071 933-4398
Email: tuebingen@bg-verkehr.de - BGW – Health and Welfare Services
Pappelallee 33/35/37
22089 Hamburg
Phone: +49 40 20207-0
Fax: +49 40 20207-2495
www.bgw-online.de
Email: online-redaktion@bgw-online.de
For further information, visit the German Statutory Accident Insurance portal: DGUV official website
Sources:
German Social Accident Insurance (DGUV) (n.d.): About Us. Retrieved from: https://www.dguv.de/de/wir-ueber-uns/index.jsp
German Social Accident Insurance (DGUV) (n.d.): Occupational accident insurance providers. https://www.dguv.de/de/bg-uk-lv/bgen/index.jsp
Associations
What is the IHK? (in German: Industrie- und Handelskammer)
The Chambers of Industry and Commerce (IHKs) are regionally organized, cross-sector associations of businesses. The IHK network consists of 79 regional chambers across Germany. Their goal is to support member companies, employees, and the local economy to foster growth. They provide a broad range of consulting services, accompany business startups, and offer guidance on legal and tax-related matters.
Overview of IHK Offices in Rhineland-Palatinate and Saarland
Rhineland-Palatinate:
- IHK Service Center Kaiserslautern
Europaallee 14–16 | 67657 Kaiserslautern
Phone: +49 631 41448-0 | Fax: -2704
Email: service.kl@pfalz.ihk24.de
Contact - IHK Service Center Landau
Im Grein 5 | 76829 Landau
Phone: +49 6341 971-2510 | Fax: -2514
Email: service.ld@pfalz.ihk24.de
Contact - IHK Service Center Pirmasens
Adam-Müller-Str. 6 | 66954 Pirmasens
Phone: +49 6331 523-2610 | Fax: -2614
Email: service.ps@pfalz.ihk24.de
Contact - IHK Service Center Ludwigshafen
Ludwigsplatz 2–4 | 67059 Ludwigshafen
Phone: +49 621 5904-0 | Fax: +49 621 5904-1214
Email: service.lu@pfalz.ihk24.de
Contact
Saarland:
- IHK Service Center Saarbrücken
Franz-Josef-Röder-Straße 9 | 66119 Saarbrücken
Email: info@saarland.ihk.de
Contact
Sources:
Information portals
Additional Information Portals for Aspiring Entrepreneurs
In addition to the resources available in the IDEENWALD Pathfinder, there are numerous online portals that provide valuable information about starting a business. Here are some of the best and most important resources on topics relevant to entrepreneurship:
-
- Federal Ministry for Economic Affairs and Energy (BMWi): Start-up Portal
This information and training platform by the BMWi aims to increase the number of new businesses in Germany by offering comprehensive resources. Topics include preparation (legal forms, business plans, financing), business operations (law, contracts, markets, HR, sustainability), checklists, and templates. It is publicly funded and completely free of charge.- GründerZeiten
Part of the BMWi portal, this regularly published info sheet covers topics like starting a business in Germany, insurance, financing, taxes, and more. It’s available for download or by order. - BMWi Start-up E-Learning Program
This online learning tool covers all stages of starting a business—from the initial decision and planning to later business management. It includes articles, checklists, diagrams, and more.
- GründerZeiten
- Gruenderplattform.de
A publicly funded online platform supported by the BMWi that equips founders with essential tools and guidance throughout the entire start-up process—from idea development and planning to financing and company formation. The platform is free of charge. - Für-Gründer.de
This portal covers all aspects of self-employment and business formation—from idea to business registration. It includes a wide range of free and paid tools as well as information on planning, founding, scaling, and useful services. - Gründerszene.de
Gründerszene is a magazine that reports on the start-up ecosystem, new companies, innovations, and business trends. Topics include business, tech, fintech, food, health, careers, and mobility. The site also offers a podcast, job board, and event calendar.
- Federal Ministry for Economic Affairs and Energy (BMWi): Start-up Portal