{"id":101,"date":"2026-06-08T19:05:50","date_gmt":"2026-06-08T19:05:50","guid":{"rendered":"https:\/\/kaganlegal-germany.com\/?page_id=101"},"modified":"2026-06-14T16:01:47","modified_gmt":"2026-06-14T16:01:47","slug":"for-entrepreneurs-founders","status":"publish","type":"page","link":"https:\/\/kaganlegal-germany.com\/en\/for-entrepreneurs-founders\/","title":{"rendered":"Legal Advisory for Entrepreneurs and Founders"},"content":{"rendered":"\n<main id=\"main-content\">\n\n\n    <section class=\"hero-meridian hero-meridian--money\" aria-labelledby=\"page-h1\">\n      <div class=\"hero-meridian__rings\" aria-hidden=\"true\"><\/div>\n      <div class=\"container hero-meridian__inner\">\n        <span class=\"hero-meridian__breadcrumb\"><a href=\"\/en\/\">Home<\/a> &middot; <a href=\"\/en\/for-whom\/\">For Whom<\/a> &middot; Entrepreneurs &amp; Founders<\/span>\n        <span class=\"hero-meridian__eyebrow\">FOR WHOM &middot; 01<\/span>\n        <h1 class=\"hero-meridian__h1\" id=\"page-h1\">Legal Advisory for Entrepreneurs and Founders<\/h1>\n        <p class=\"hero-meridian__lead\">Entrepreneurs and founders in Germany face legal questions that rarely stay within one practice area. We coordinate the corporate, immigration, employment and commercial-law aspects within a consistent legal strategy, in German and English.<\/p>\n        <div class=\"hero-meridian__actions\">\n          <a href=\"\/en\/contact\/\" class=\"btn btn-light btn-lg\">Request Advice<\/a>\n          <a href=\"#ef-formation\" class=\"btn btn-ghost-light btn-lg\">Learn more &darr;<\/a>\n        <\/div>\n      <\/div>\n    <\/section>\n    <div class=\"container\">\n      <aside class=\"summary-box\" aria-label=\"At a glance\">\n        <span class=\"summary-box__eyebrow\">At a Glance<\/span>\n        <p class=\"summary-box__text\">Entrepreneurs and founders in Germany &mdash; domestic and international &mdash; face a coordinated set of legal questions: choice of legal form, entity formation, shareholder agreements, residence permit if non-EU, employment, commercial contracts and ongoing corporate counsel. We advise in German and English.<\/p>\n      <\/aside>\n    <\/div>\n\n    <!-- Service Detail -->\n    <section class=\"service-body\" id=\"service-body\">\n      <div class=\"container\">\n\n        <details class=\"page-toc-mobile\">\n          <summary class=\"page-toc-summary\">\n            <span class=\"page-toc-title\">Contents<\/span>\n          <\/summary>\n          <nav class=\"page-toc-nav\" aria-label=\"Page contents\">\n            <ul class=\"page-toc-list\">\n              <li><a href=\"#ef-formation\" class=\"page-toc-link\">Formation and corporate structure<\/a><\/li>\n              <li><a href=\"#ef-immigration\" class=\"page-toc-link\">Residence permit for non-EU founders<\/a><\/li>\n              <li><a href=\"#ef-contracts\" class=\"page-toc-link\">Commercial contracts<\/a><\/li>\n              <li><a href=\"#ef-employment\" class=\"page-toc-link\">Employment law for growing businesses<\/a><\/li>\n              <li><a href=\"#ef-ongoing\" class=\"page-toc-link\">Ongoing corporate counsel<\/a><\/li>\n            <\/ul>\n          <\/nav>\n        <\/details>\n\n        <div class=\"service-layout\">\n          <div class=\"service-prose\">\n\n            <h2 id=\"ef-formation\">Formation and Corporate Structure<\/h2>\n            <p>The first legal decision for most founders is the choice of entity. For a GmbH, the minimum share capital is &euro;&nbsp;25,000. For a UG (haftungsbeschr&auml;nkt), formation with share capital below &euro;&nbsp;25,000 is possible; contributions must be made in cash at formation and one quarter of the adjusted annual surplus must be allocated to the statutory reserve. The UG rules cease to apply only after the share capital has been formally increased to at least &euro;&nbsp;25,000 &mdash; this requires a formal capital increase, not a mere accumulation of reserves. The choice between GmbH and UG should also take account of financing needs, market perception, banking, investor expectations and &mdash; for international founders &mdash; the immigration-law evidence of adequate business substance. Both require notarial formation and commercial-register filing.<\/p>\n            <p>For international founders, the corporate structure must also account for the immigration dimension: forming a GmbH does not itself authorise a non-EU national to live or work in Germany. The appropriate residence route depends on the founder&rsquo;s shareholding, voting rights, actual entrepreneurial control and managing-director role. A founder or shareholder-director may fall under &sect;&nbsp;21 AufenthG, while a managing director without genuine entrepreneurial control may require an employment-based permit, in particular under &sect;&nbsp;19c(1) AufenthG in conjunction with &sect;&nbsp;3 no.&nbsp;2 BeschV. The corporate and immigration steps are legally separate but should be planned together.<\/p>\n            <p>Key formation decisions: single founder or co-founders; shareholding and voting structure; managing-director appointment and service agreement; articles of association and reserved matters; shareholder agreement &mdash; depending on the ownership and financing structure, this may address voting rights, reserved matters, vesting, transfer restrictions, leaver provisions, deadlock, drag-along and tag-along rights and, where investors are involved, anti-dilution protection. Further detail is on our <a href=\"\/en\/gmbh-formation-germany\/\">GmbH formation page<\/a> and <a href=\"\/en\/gmbh-foreign-shareholders\/\">GmbH for foreign shareholders page<\/a>.<\/p>\n\n            <h2 id=\"ef-immigration\">Residence Permit for Non-EU Founders<\/h2>\n            <p>A non-EU national who intends to establish and actively manage a business in Germany generally requires a residence permit under &sect;&nbsp;21 AufenthG. The immigration authority normally obtains an opinion from the competent economic or professional body, such as the IHK or HWK. The opinion is not legally binding, but a critical assessment can materially increase the risk of refusal. Under &sect;&nbsp;21(4) AufenthG, a settlement permit may be granted after three years of successful self-employment if the business is expected to continue sustainably, the required family livelihood is secured and the other statutory conditions are met. The permit is not automatic. This three-year route does not apply to freelance permits under &sect;&nbsp;21(5). Further detail is on our <a href=\"\/en\/business-immigration-investors\/\">entrepreneur visa page<\/a> and <a href=\"\/en\/managing-director-residence-permit-germany\/\">managing director residence permit page<\/a>.<\/p>\n\n            <h2 id=\"ef-contracts\">Commercial Contracts and Early Operations<\/h2>\n            <p>The first commercial relationships &mdash; with customers, suppliers, service providers, distributors and partners &mdash; require contracts that reflect German law and protect the business. Standard terms (AGB) require careful drafting to be enforceable under &sect;&sect;&nbsp;305&nbsp;ff. BGB. International contracts may involve choice-of-law and jurisdiction questions. The CISG may apply to international sales unless validly excluded. For technology and creative businesses, the contract structure should also address ownership and licensing of intellectual property created by founders, employees and external contractors. Further detail is on our <a href=\"\/en\/commercial-contract-law\/\">commercial contract law page<\/a>.<\/p>\n\n            <h2 id=\"ef-employment\">Employment Law for Growing Businesses<\/h2>\n            <p>Hiring the first employees triggers employment-contract drafting, the statutory documentation obligations under the NachwG, working-time and social-security issues, and &mdash; where relevant &mdash; fixed-term and immigration requirements. Once the headcount threshold is reached, KSchG dismissal protection applies. Since 1&nbsp;January 2026, a German-based employer recruiting a third-country national who resides abroad for work in Germany must provide the information required by &sect;&nbsp;45c AufenthG no later than the first day of work, including the contact details of the nearest Faire Integration advisory centre. Further detail is on our <a href=\"\/en\/employment-law-employers\/\">employment law for employers page<\/a>.<\/p>\n\n            <h2 id=\"ef-ongoing\">Ongoing Corporate Counsel<\/h2>\n            <p>Beyond formation, a growing business needs ongoing legal support: shareholder resolutions, managing-director changes, capital measures and investment rounds, commercial-register filings, contract reviews, and guidance on corporate governance questions as the company develops. We advise founders who prefer a consistent legal point of contact across disciplines.<\/p>\n\n            <p class=\"anwalt-hinweis\">Advice by <a href=\"\/en\/firm\/alexander-kagan\/\">Alexander Kagan, Attorney at Law<\/a>, admitted to the Hanseatic Bar Association Hamburg.<\/p>\n            <p class=\"page-disclaimer\">The contents of this page are for general information only and do not constitute legal advice. A mandate is established only upon express acceptance.<\/p>\n\n          <\/div><!-- \/.service-prose -->\n\n          <aside class=\"page-toc-sidebar\" aria-label=\"Page navigation\">\n            <div class=\"page-toc-box\">\n              <div class=\"page-toc-title\">Contents<\/div>\n              <nav aria-label=\"Sections\">\n                <ul class=\"page-toc-list\">\n                  <li><a href=\"#ef-formation\" class=\"page-toc-link\">Formation and corporate structure<\/a><\/li>\n                  <li><a href=\"#ef-immigration\" class=\"page-toc-link\">Residence permit for non-EU founders<\/a><\/li>\n                  <li><a href=\"#ef-contracts\" class=\"page-toc-link\">Commercial contracts<\/a><\/li>\n                  <li><a href=\"#ef-employment\" class=\"page-toc-link\">Employment law for growing businesses<\/a><\/li>\n                  <li><a href=\"#ef-ongoing\" class=\"page-toc-link\">Ongoing corporate counsel<\/a><\/li>\n                <\/ul>\n              <\/nav>\n            <\/div>\n          <\/aside>\n\n        <\/div><!-- \/.service-layout -->\n      <\/div><!-- \/.container -->\n    <\/section>\n    <!-- Related Services -->\n    <section class=\"section-related\" id=\"leistungen\" aria-labelledby=\"related-heading-ef\">\n      <div class=\"container\">\n        <h2 id=\"related-heading-ef\">Entrepreneurs &amp; Founders &mdash; Key Services<\/h2>\n        <div class=\"related-cards\">\n          <a href=\"\/en\/business-immigration-investors\/\" class=\"related-card\">\n            <span class=\"related-card-topic\">Services<\/span>\n            <span class=\"related-card-title\">Entrepreneur Visa &sect;&nbsp;21<\/span>\n            <span class=\"related-card-arrow\"><\/span>\n          <\/a>\n          <a href=\"\/en\/gmbh-formation-germany\/\" class=\"related-card\">\n            <span class=\"related-card-topic\">Corporate<\/span>\n            <span class=\"related-card-title\">GmbH Formation Germany<\/span>\n            <span class=\"related-card-arrow\"><\/span>\n          <\/a>\n          <a href=\"\/en\/gmbh-foreign-shareholders\/\" class=\"related-card\">\n            <span class=\"related-card-topic\">Corporate<\/span>\n            <span class=\"related-card-title\">GmbH for Foreign Shareholders<\/span>\n            <span class=\"related-card-arrow\"><\/span>\n          <\/a>\n          <a href=\"\/en\/managing-director-residence-permit-germany\/\" class=\"related-card\">\n            <span class=\"related-card-topic\">Services<\/span>\n            <span class=\"related-card-title\">Managing Director Permit<\/span>\n            <span class=\"related-card-arrow\"><\/span>\n          <\/a>\n          <a href=\"\/en\/commercial-contract-law\/\" class=\"related-card\">\n            <span class=\"related-card-topic\">Commercial<\/span>\n            <span class=\"related-card-title\">Commercial Contract Law<\/span>\n            <span class=\"related-card-arrow\"><\/span>\n          <\/a>\n          <a href=\"\/en\/employment-law-employers\/\" class=\"related-card\">\n            <span class=\"related-card-topic\">Employment<\/span>\n            <span class=\"related-card-title\">Employment Law for Employers<\/span>\n            <span class=\"related-card-arrow\"><\/span>\n          <\/a>\n          <a href=\"\/en\/for-startups\/\" class=\"related-card\">\n            <span class=\"related-card-topic\">For Whom<\/span>\n            <span class=\"related-card-title\">For Startups<\/span>\n            <span class=\"related-card-arrow\"><\/span>\n          <\/a>\n          <a href=\"\/en\/contact\/\" class=\"related-card\">\n            <span class=\"related-card-topic\">Contact<\/span>\n            <span class=\"related-card-title\">Request Advice<\/span>\n            <span class=\"related-card-arrow\"><\/span>\n          <\/a>\n        <\/div>\n      <\/div>\n    <\/section>\n\n    <!-- FAQ -->\n    <section class=\"faq-section\" aria-labelledby=\"faq-heading-ef\">\n      <div class=\"container\">\n        <h2 id=\"faq-heading-ef\">FAQ &mdash; Legal Advisory for Entrepreneurs and Founders<\/h2>\n        <ul class=\"faq-list\" role=\"list\">\n\n          <li class=\"faq-item\">\n            <button class=\"faq-question\" aria-expanded=\"false\">\n              <span>Can one engagement cover immigration and corporate formation?<\/span>\n              <span class=\"faq-icon\" aria-hidden=\"true\">+<\/span>\n            <\/button>\n            <div class=\"faq-answer\">\n              <p>Yes. The corporate and immigration steps are legally separate but should be planned together. Forming or owning a GmbH does not itself authorise a third-country national to live or perform operational work in Germany.<\/p>\n            <\/div>\n          <\/li>\n\n          <li class=\"faq-item\">\n            <button class=\"faq-question\" aria-expanded=\"false\">\n              <span>Do you advise domestic founders as well as international ones?<\/span>\n              <span class=\"faq-icon\" aria-hidden=\"true\">+<\/span>\n            <\/button>\n            <div class=\"faq-answer\">\n              <p>Both. The corporate, employment and commercial advice is the same regardless of nationality. For non-EU founders, the immigration dimension is integrated into the mandate.<\/p>\n            <\/div>\n          <\/li>\n\n          <li class=\"faq-item\">\n            <button class=\"faq-question\" aria-expanded=\"false\">\n              <span>When should a founder engage a lawyer?<\/span>\n              <span class=\"faq-icon\" aria-hidden=\"true\">+<\/span>\n            <\/button>\n            <div class=\"faq-answer\">\n              <p>Legal advice is particularly valuable before the articles of association, founder agreement, managing-director arrangements or external investment terms become binding. Voting, vesting, transfer and exit provisions are substantially harder and more expensive to correct later.<\/p>\n            <\/div>\n          <\/li>\n\n          <li class=\"faq-item\">\n            <button class=\"faq-question\" aria-expanded=\"false\">\n              <span>Do you advise startups?<\/span>\n              <span class=\"faq-icon\" aria-hidden=\"true\">+<\/span>\n            <\/button>\n            <div class=\"faq-answer\">\n              <p>Yes. Further detail on startup-specific topics &mdash; ESOP\/VSOP, financing rounds, investor agreements &mdash; is on our <a href=\"\/en\/for-startups\/\">startup advisory page<\/a>.<\/p>\n            <\/div>\n          <\/li>\n\n        <\/ul>\n      <\/div>\n    <\/section>\n\n    <!-- CTA -->\n    <section class=\"section-cta\">\n      <div class=\"container\">\n        <div class=\"cta-inner\">\n          <h2 class=\"cta-heading\">Entrepreneurs &amp; Founders &mdash; Request Advice<\/h2>\n          <p class=\"cta-body\">Planning to establish or restructure a business in Germany? The corporate, immigration and contractual structure should be reviewed before binding documents are signed.<\/p>\n          <div class=\"cta-actions\">\n            <a href=\"\/en\/contact\/\" class=\"btn btn-primary btn-lg\">Request Advice<\/a>\n          <\/div>\n        <\/div>\n      <\/div>\n    <\/section>\n  \n<\/main>\n\n\n\n<script type=\"application\/ld+json\">\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@graph\": [\n      {\n        \"@type\": \"WebPage\",\n        \"@id\": \"https:\/\/kaganlegal-germany.com\/en\/for-entrepreneurs-founders\/\",\n        \"name\": \"Legal Advisory for Entrepreneurs and Founders \u2014 Kagan Legal\",\n        \"audience\": { \"@type\": \"BusinessAudience\" }\n      },\n      {\n        \"@type\": \"FAQPage\",\n        \"@id\": \"https:\/\/kaganlegal-germany.com\/en\/for-entrepreneurs-founders\/#faq\",\n        \"mainEntity\": [\n          {\n            \"@type\": \"Question\",\n            \"name\": \"Can one engagement cover immigration and corporate formation?\",\n            \"acceptedAnswer\": {\n              \"@type\": \"Answer\",\n              \"text\": \"Yes. 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We coordinate the corporate, immigration, employment and commercial-law aspects within a consistent legal strategy, in German and English. Request Advice Learn more [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-leistung","meta":{"footnotes":""},"class_list":["post-101","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/kaganlegal-germany.com\/en\/wp-json\/wp\/v2\/pages\/101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kaganlegal-germany.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/kaganlegal-germany.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/kaganlegal-germany.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kaganlegal-germany.com\/en\/wp-json\/wp\/v2\/comments?post=101"}],"version-history":[{"count":0,"href":"https:\/\/kaganlegal-germany.com\/en\/wp-json\/wp\/v2\/pages\/101\/revisions"}],"wp:attachment":[{"href":"https:\/\/kaganlegal-germany.com\/en\/wp-json\/wp\/v2\/media?parent=101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}