Legal Form Comparison
Compare German business legal forms by key characteristics.
Compare now| Legal form | Minimum capital | Liability | Founders | Formation effort | Bookkeeping |
|---|---|---|---|---|---|
| Sole Proprietorship | None | Unlimited (personal) | 1 | Low | Simple (cash-basis) |
| GbR (Civil Law Partnership) | None | Unlimited (personal) | ≥ 2 | Low | Simple (cash-basis) |
| UG (limited liability) | From €1 | Limited to company assets | 1 | Medium | Double-entry bookkeeping |
| GmbH (Limited Liability Company) | €25,000 (at least half paid in) | Limited to company assets | 1 | High | Double-entry bookkeeping |
| OHG (General Partnership) | None | Unlimited (personal) | ≥ 2 | Medium | Double-entry bookkeeping |
| KG (Limited Partnership) | None | General partner: unlimited, limited partner: limited | ≥ 2 | Medium | Double-entry bookkeeping |
| e.K. (Registered Merchant) | None | Unlimited (personal) | 1 | Medium | Double-entry bookkeeping |
General, simplified overview — not legal advice. Consult a notary, lawyer or tax advisor for a binding assessment.
How it works
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Minimum capital, liability, bookkeeping at a glance.
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Benefits
Good to know about this tool
Compares 7 German business legal forms by minimum capital, liability, number of founders, effort and bookkeeping.
Because choosing a legal form is one of the first and most consequential decisions when founding a business.
- Compare legal forms ahead of a founding consultation
- Assess the liability risk of different options
- Filter legal forms by number of founders
- Use this comparison only as a first overview, not as the sole basis for a decision
- Involve a notary, lawyer or tax advisor before the final choice
Frequently Asked Questions
Which legal form is right for me?
It depends on liability risk, capital needs and number of founders — this table is only a first overview.
Is this information legally binding?
General, simplified overview — not legal advice. Consult a notary, lawyer or tax advisor for a binding assessment.
The information, templates, scripts, calculations and recommendations provided are intended for educational and assistance purposes only. Always review and test any generated result before production use. IT Smart Service accepts no liability for misuse, data loss, outages, security incidents, or legal, financial or technical damages arising from incorrect or improper use. Responsibility for validation, testing and deployment decisions rests with the user.
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