ROUTE
Founding a GmbH or UG
Choosing the form by money and signal, the notary with the model protocol, the liability trap before the entry โ and the five duties after.
โ Checked: 18/07/2026
A limited liability company protects personal assets and also signals something to counterparties: large clients work more readily with a company than with a sole trader. The price is share capital, a notary and permanent reporting obligations.
COSTS AND DEADLINES
What you pay for on this route
- Notary + court + registerplus account and advice~โฌ600โ1,000 (model protocol: from ~โฌ350)
Amounts follow official fees as of each stepโs verification date. Your city may charge a different rate โ check the step itself.
โบ More about this route
This three-step route covers the whole procedure: choosing between the simplified and the full form on cost and on signalling, incorporation before a notary with a bank account and registration in the commercial register, and finally the compulsory registrations once the entry exists.
The route deals separately with the dangerous window between signing at the notary and entry in the register. During that time liability protection is not yet complete, and shareholders are personally liable for obligations taken on beforehand โ a detail most people discover only afterwards.
WHERE PEOPLE MOST OFTEN LOSE MONEY AND TIME
- Starting to trade before registration. Until then limited liability does not apply in full and the risk sits personally with the shareholders.
- Choosing the simplified form purely for its low capital. It obliges you to build reserves from profit and signals less strength to counterparties.
- Assuming the notary finishes it. Registrations with the tax office, the trade office and social insurance follow, and without them the business is incomplete.
- Underestimating running costs. Bookkeeping, annual accounts and publication cost money every year regardless of turnover.
FREQUENTLY ASKED QUESTIONS ABOUT THIS ROUTE
How does the simplified form differ from the full one?โพ
In the minimum capital at the start. The simplified version is available for a symbolic amount but requires annual reserves from profit until full capital is reached, after which it can be converted.
Is a notary mandatory?โพ
Yes, incorporation requires notarial certification of the articles. Using the standard protocol for simple cases keeps costs well below those of individually drafted articles.
When does limited liability begin?โพ
In full, from entry in the commercial register. For obligations taken on before that, shareholders are personally liable, so large contracts are better left until after registration.
What must be done after registration?โพ
Register with the tax office and obtain a tax number, register the trade, settle social insurance where staff are employed, and set up proper bookkeeping from the outset.