{"id":80,"date":"2026-06-08T19:05:50","date_gmt":"2026-06-08T19:05:50","guid":{"rendered":"https:\/\/kaganlegal-germany.com\/?page_id=80"},"modified":"2026-06-14T16:01:47","modified_gmt":"2026-06-14T16:01:47","slug":"choice-of-legal-form-germany","status":"publish","type":"page","link":"https:\/\/kaganlegal-germany.com\/en\/choice-of-legal-form-germany\/","title":{"rendered":"Choice of Legal Form for a German Business"},"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    <span class=\"hero-meridian__accent-num\" aria-hidden=\"true\">02<\/span>\n    <div class=\"container hero-meridian__inner\">\n      <span class=\"hero-meridian__breadcrumb\"><a href=\"\/en\/\">Home<\/a> &middot; <a href=\"\/en\/services\/\">Services<\/a> &middot; <a href=\"\/en\/company-formation\/\">Company Formation &amp; Corporate Law<\/a> &middot; Choice of Legal Form<\/span>\n      <h1 class=\"hero-meridian__h1\" id=\"page-h1\">Choice of Legal Form for a German Business<\/h1>\n      <p class=\"hero-meridian__lead\">The choice of business form is one of the most consequential decisions in setting up a company. It determines liability, capital requirements, tax structure, external profile and governance for years ahead. Alexander Kagan advises on the choice of legal form in Hamburg &mdash; as strategic advice, not a standard checklist.<\/p>\n      <div class=\"hero-meridian__actions\">\n        <a href=\"\/en\/contact\/\" class=\"btn btn-light btn-lg\">Request a consultation<\/a>\n        <a href=\"\/en\/company-formation\/\" class=\"btn btn-ghost-light btn-lg\">Company Formation overview<\/a>\n      <\/div>\n    <\/div>\n  <\/section>\n\n  <section class=\"service-body\">\n    <div class=\"container\">\n\n      <div class=\"page-toc-mobile\">\n        <details class=\"page-toc-details\">\n          <summary class=\"page-toc-summary\">Contents<\/summary>\n          <nav class=\"page-toc-nav\" aria-label=\"Page contents\">\n            <ol class=\"page-toc-list\" role=\"list\">\n              <li><a href=\"#rf-factors\" class=\"page-toc-link\">What determines the choice<\/a><\/li>\n              <li><a href=\"#rf-comparison\" class=\"page-toc-link\">Legal forms at a glance<\/a><\/li>\n              <li><a href=\"#rf-capital\" class=\"page-toc-link\">Companies with limited liability<\/a><\/li>\n              <li><a href=\"#rf-partnerships\" class=\"page-toc-link\">Partnerships and sole traders<\/a><\/li>\n              <li><a href=\"#rf-mopeg\" class=\"page-toc-link\">MoPeG 2024<\/a><\/li>\n              <li><a href=\"#rf-advice\" class=\"page-toc-link\">Advice rather than a template<\/a><\/li>\n            <\/ol>\n          <\/nav>\n        <\/details>\n      <\/div>\n\n      <div class=\"service-layout\">\n      <div class=\"service-prose\">\n\n        <div class=\"summary-box\">\n          <p class=\"summary-box__eyebrow\">At a glance<\/p>\n          <p class=\"summary-box__text\">The principal business forms in Germany are the sole proprietorship (Einzelunternehmen), GbR, OHG, KG, GmbH &amp; Co. KG, UG, GmbH and AG. The choice depends on liability exposure, capital requirements, tax structure, external profile and shareholder composition. Since the MoPeG of 1 January 2024, the BGB expressly distinguishes between a legally capable and a non-legally capable GbR; the legally capable GbR can be registered in the partnership register as an eingetragene GbR (eGbR). We advise on the choice of legal form &mdash; on the basis of the specific project, not a standard checklist.<\/p>\n        <\/div>\n\n        <h2 id=\"rf-factors\">What determines the choice of legal form<\/h2>\n        <p>The choice of legal form depends on several factors that are rarely assessed in isolation.<\/p>\n        <p><strong>Liability:<\/strong> Those wishing to limit personal liability exposure will typically need to consider a limited-liability company or a liability-limiting structure. <strong>Capital requirements:<\/strong> The GmbH requires &euro;25,000 share capital (&sect;&nbsp;5 GmbHG), the UG allows a start from &euro;1, while the GbR, OHG and KG themselves have no statutory minimum capital. A GmbH &amp; Co. KG nevertheless requires a separate general-partner GmbH, which is subject to the GmbH minimum share-capital rules. <strong>External profile:<\/strong> Not every legal form sends the same signal to clients, banks and potential partners. <strong>Tax treatment:<\/strong> Corporations such as the GmbH and AG are separate taxpayers for corporate income-tax purposes and are generally also subject to trade tax. Partnerships are usually treated transparently for income- or corporate-tax purposes, with profits attributed to the partners according to their legal and tax status. Where the partnership carries on a trade, the partnership itself is generally liable for trade tax. The tax consequences should be assessed separately with a tax adviser. <strong>Governance:<\/strong> Those working with partners or investors need clear rules on voting rights, profit distribution and exit.<\/p>\n        <p>In practice, the choice of legal form is often driven by tax considerations &mdash; with the result that corporate-law complications only become apparent later. Choosing the GmbH without putting governance, exit mechanisms or succession provisions in place leaves founders without a solid basis at the first dispute. Choosing the GbR because it is quick and inexpensive underestimates the unlimited personal liability of all partners. The choice of legal form is a strategic decision &mdash; not a matter of filling in a form.<\/p>\n\n        <h2 id=\"rf-comparison\">Legal forms at a glance<\/h2>\n        <p>The table below shows the principal business forms by liability and statutory minimum capital. The tax treatment and suitability for specific projects must be assessed individually.<\/p>\n        <div class=\"data-table-wrap\">\n          <table class=\"data-table\">\n            <thead>\n              <tr><th>Legal form<\/th><th>Liability<\/th><th>Minimum capital<\/th><\/tr>\n            <\/thead>\n            <tbody>\n              <tr>\n                <td>Einzelunternehmen (sole proprietorship)<\/td>\n                <td>Unlimited personal<\/td>\n                <td>None<\/td>\n              <\/tr>\n              <tr>\n                <td>GbR \/ eGbR (since MoPeG 2024)<\/td>\n                <td>For obligations of a legally capable GbR, the partners are generally personally and jointly and severally liable under &sect;&nbsp;721 BGB.<\/td>\n                <td>None<\/td>\n              <\/tr>\n              <tr>\n                <td>OHG<\/td>\n                <td>Unlimited personal (all partners)<\/td>\n                <td>None<\/td>\n              <\/tr>\n              <tr>\n                <td>KG<\/td>\n                <td>General partner (Komplement&auml;r): unlimited personal liability. Limited partner (Kommanditist): direct liability to company creditors up to the registered liability amount (Haftsumme); liability is excluded to the extent that the agreed contribution has been made, but may revive if the contribution is repaid or treated as not having been made under &sect;&sect;&nbsp;171 and 172 HGB.<\/td>\n                <td>None (statutory)<\/td>\n              <\/tr>\n              <tr>\n                <td>GmbH &amp; Co. KG<\/td>\n                <td>General-partner GmbH: unlimited liability as general partner, but only with the GmbH&rsquo;s corporate assets. Limited partners: liability under &sect;&sect;&nbsp;171 and 172 HGB up to the registered Haftsumme, subject to the payment and repayment rules. Additional personal liability from management, guarantees or breach of duty to be assessed separately.<\/td>\n                <td>No statutory minimum capital for the KG itself; the general-partner GmbH requires at least &euro;25,000 share capital.<\/td>\n              <\/tr>\n              <tr>\n                <td>UG (haftungsbeschr&auml;nkt)<\/td>\n                <td>In principle, liability for company obligations is limited to the company&rsquo;s assets.<\/td>\n                <td>From &euro;1 (&sect;&nbsp;5a GmbHG)<\/td>\n              <\/tr>\n              <tr>\n                <td>GmbH<\/td>\n                <td>In principle, liability for company obligations is limited to the company&rsquo;s assets.<\/td>\n                <td>&euro;25,000 (&sect;&nbsp;5 GmbHG)<\/td>\n              <\/tr>\n              <tr>\n                <td>AG<\/td>\n                <td>In principle, liability for company obligations is limited to the company&rsquo;s assets.<\/td>\n                <td>&euro;50,000 share capital (&sect;&nbsp;7 AktG)<\/td>\n              <\/tr>\n              <tr>\n                <td>PartG \/ PartGmbB<\/td>\n                <td>PartG: the partnership and, in principle, the partners are liable. For professional errors, only the partners involved in handling the relevant engagement are generally personally liable alongside the partnership. PartGmbB: for damages arising from professional errors, only the partnership is liable where the legally prescribed professional indemnity insurance is maintained. The limitation does not generally extend to other obligations such as rent, employment liabilities, taxes or ordinary contractual debts.<\/td>\n                <td>None (liberal professions only)<\/td>\n              <\/tr>\n            <\/tbody>\n          <\/table>\n        <\/div>\n\n        <h2 id=\"rf-capital\">Companies with limited liability &mdash; GmbH, UG and AG<\/h2>\n        <p>The <strong>GmbH<\/strong> is one of the most widely used corporate forms for business activity in Germany. It generally limits shareholder liability for company obligations to the company&rsquo;s assets and offers a flexible shareholder structure. It is suited to a broad range of projects &mdash; from a sole formation to a Mittelstand company with several shareholders. Further detail is available on the <a href=\"\/en\/gmbh-formation-germany\/\">GmbH formation<\/a> page.<\/p>\n        <p>The <strong>UG (haftungsbeschr&auml;nkt)<\/strong> under &sect;&nbsp;5a GmbHG offers liability limitation with low initial capital. It must allocate one quarter of its adjusted annual surplus to a statutory reserve. At formation, contributions in kind are excluded; the share capital must be paid in full in cash. The change to the GmbH designation is possible once the share capital has been formally increased to at least &euro;25,000. Further detail is available on the <a href=\"\/en\/ug-formation-germany\/\">UG formation<\/a> page.<\/p>\n        <p>The <strong>AG<\/strong> (Aktiengesellschaft) requires minimum share capital of &euro;50,000 (&sect;&nbsp;7 AktG), a management board, a supervisory board and a considerably more elaborate organisational structure. For start-ups and typical Mittelstand companies it is rarely the first step &mdash; but for companies planning a stock-exchange listing or seeking large investor circles it may become relevant.<\/p>\n\n        <h2 id=\"rf-partnerships\">Partnerships and sole traders<\/h2>\n        <p>The <strong>sole proprietorship<\/strong> (Einzelunternehmen) is the simplest form: no articles of association, no notarial execution, full personal liability. For freelancers and sole founders with limited risk exposure it is a common choice.<\/p>\n        <p>A <strong>GbR<\/strong> (Gesellschaft b&uuml;rgerlichen Rechts) is created where two or more persons agree to promote a common purpose in the manner defined by their agreement. The partnership agreement need not always be written and may arise through the parties&rsquo; conduct, but the mere existence of a shared interest does not automatically create a GbR. Since the MoPeG, the BGB expressly distinguishes between a legally capable GbR that participates in legal transactions in its own name and a non-legally capable internal partnership. The legally capable GbR can be registered as an eGbR in the partnership register. For obligations of a legally capable GbR, the partners are generally personally and jointly and severally liable under &sect;&nbsp;721 BGB.<\/p>\n        <p>The <strong>OHG<\/strong> (Offene Handelsgesellschaft) is the commercial partnership for partners with unlimited liability (&sect;&sect;&nbsp;105 et&nbsp;seq. HGB) &mdash; all partners are personally and unlimitedly liable. The <strong>KG<\/strong> (Kommanditgesellschaft) separates general partners (Komplement&auml;r, unlimited personal liability) from limited partners (Kommanditist, whose direct liability to creditors is in principle limited to the registered Haftsumme and who bears no further external personal liability to the extent the agreed contribution has been made, though liability may revive under &sect;&sect;&nbsp;171 and 172 HGB if the contribution is repaid) &mdash; a flexible form for family-owned and Mittelstand structures.<\/p>\n        <p>The <strong>GmbH &amp; Co. KG<\/strong> combines both: the GmbH acts as the personally liable general partner, but its liability is confined to its own corporate assets. Natural persons participating as limited partners remain subject to the statutory Haftsumme rules, including the risks arising from unpaid or repaid contributions. Additional personal liability risks &mdash; for example arising from management activities, guarantees or breach of duty &mdash; remain to be assessed separately. This structure is widespread in the German Mittelstand and in family-owned companies; it is legally complex and requires careful tax structuring.<\/p>\n        <p>The <strong>PartG<\/strong> (Partnerschaftsgesellschaft) is available to members of the liberal professions within the meaning of the applicable professional and partnership law &mdash; such as doctors, lawyers, tax advisers and architects. The partnership and, in principle, the partners are liable; for professional errors, only the partners involved in handling the relevant engagement are generally personally liable alongside the partnership. The <strong>PartGmbB<\/strong> (Partnerschaftsgesellschaft mit beschr&auml;nkter Berufshaftung) enables a limitation of liability for damages arising from professional errors, provided the legally prescribed professional indemnity insurance is maintained. The limitation does not generally extend to other obligations such as rent, employment liabilities, taxes or ordinary contractual debts. The PartGmbB is available only where the applicable professional law permits this structure and prescribes the required professional indemnity insurance. Both forms are not available to commercial founders.<\/p>\n\n        <h2 id=\"rf-mopeg\">MoPeG 2024 and the GbR register<\/h2>\n        <p>The Partnership Law Modernisation Act (MoPeG) has been in force since 1 January 2024. Since that date, the BGB expressly distinguishes between a legally capable GbR that participates in legal transactions in its own name and a non-legally capable internal partnership (&sect;&sect;&nbsp;705 et seq. BGB, new version). The legally capable GbR can be registered as an eingetragene Gesellschaft b&uuml;rgerlichen Rechts (eGbR) in the partnership register. Registration is generally voluntary. It is, however, a legal precondition for certain register-dependent transactions: a right may be entered for a GbR in the land register only if the GbR is registered in the Gesellschaftsregister, and a GbR can also be entered or changed in a GmbH shareholder list only if it is registered.<\/p>\n        <p>An existing GbR does not have to register merely because the MoPeG entered into force. Registration should, however, be reviewed before a real-estate transaction, the acquisition or transfer of GmbH shares or another transaction requiring an entry or amendment in a public register.<\/p>\n\n        <h2 id=\"rf-advice\">Advice rather than a template<\/h2>\n        <p>Standard forms are available online for almost every legal form. What they do not provide: an assessment of which form suits the specific project, shareholder structure, liability profile and tax position. And above all: the provisions for disputes, succession and exit that are typically absent precisely when they are needed.<\/p>\n        <p>We advise on the choice of legal form &mdash; as a preliminary step before formation, but also for existing companies reviewing their structure. In German and English.<\/p>\n\n        <p class=\"anwalt-hinweis\">Advice is provided by <a href=\"\/en\/firm\/alexander-kagan\/\">Alexander Kagan<\/a>, admitted as a German Rechtsanwalt and a member of the Hanseatic Bar Association Hamburg (Hanseatische Rechtsanwaltskammer Hamburg).<\/p>\n\n        <p class=\"page-disclaimer\">The content of this page is general information only and does not constitute legal advice. The choice of legal form depends on the circumstances of the individual case.<\/p>\n\n      <\/div><!-- \/.service-prose -->\n\n      <aside class=\"page-toc-sidebar\" aria-label=\"Page contents\">\n        <div class=\"page-toc-box\">\n          <div class=\"page-toc-title\">Contents<\/div>\n          <nav aria-label=\"Page contents\">\n            <ol class=\"page-toc-list\" role=\"list\">\n              <li><a href=\"#rf-factors\" class=\"page-toc-link\">What determines the choice<\/a><\/li>\n              <li><a href=\"#rf-comparison\" class=\"page-toc-link\">Legal forms at a glance<\/a><\/li>\n              <li><a href=\"#rf-capital\" class=\"page-toc-link\">Companies with limited liability<\/a><\/li>\n              <li><a href=\"#rf-partnerships\" class=\"page-toc-link\">Partnerships and sole traders<\/a><\/li>\n              <li><a href=\"#rf-mopeg\" class=\"page-toc-link\">MoPeG 2024<\/a><\/li>\n              <li><a href=\"#rf-advice\" class=\"page-toc-link\">Advice rather than a template<\/a><\/li>\n            <\/ol>\n          <\/nav>\n        <\/div>\n      <\/aside>\n\n      <\/div><!-- \/.service-layout -->\n    <\/div><!-- \/.container -->\n  <\/section>\n\n  <section class=\"section-related\" aria-label=\"Related topics \u2014 choice of legal form\">\n    <div class=\"container\">\n      <div class=\"section-label\">Related topics<\/div>\n      <h2>Choice of legal form &mdash; related services and detail pages<\/h2>\n      <div class=\"related-grid\">\n        <a href=\"\/en\/company-formation\/\" class=\"related-card\">\n          <span class=\"related-card-topic\">Overview<\/span>\n          <span class=\"related-card-title\">Company Formation &amp; Corporate Law<\/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\">GmbH<\/span>\n          <span class=\"related-card-title\">GmbH formation in Germany<\/span>\n          <span class=\"related-card-arrow\"><\/span>\n        <\/a>\n        <a href=\"\/en\/ug-formation-germany\/\" class=\"related-card\">\n          <span class=\"related-card-topic\">UG<\/span>\n          <span class=\"related-card-title\">UG (haftungsbeschr\u00e4nkt) formation<\/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\">International<\/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\/for-entrepreneurs-founders\/\" class=\"related-card\">\n          <span class=\"related-card-topic\">For founders<\/span>\n          <span class=\"related-card-title\">For entrepreneurs and founders<\/span>\n          <span class=\"related-card-arrow\"><\/span>\n        <\/a>\n        <a href=\"\/en\/corporate-law-germany\/\" class=\"related-card\">\n          <span class=\"related-card-topic\">Corporate law<\/span>\n          <span class=\"related-card-title\">Corporate law in Germany<\/span>\n          <span class=\"related-card-arrow\"><\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/section>\n\n  <section class=\"faq-section faq-section--surface\" aria-labelledby=\"faq-heading-rf\">\n    <div class=\"container\">\n      <div class=\"section-label\">FAQ<\/div>\n      <h2 id=\"faq-heading-rf\">Frequently asked questions on the choice of legal form<\/h2>\n      <ul class=\"faq-list\" role=\"list\">\n\n        <li class=\"faq-item\">\n          <button class=\"faq-question\" aria-expanded=\"false\">\n            <span>Which legal form do most founders in Germany choose?<\/span>\n            <span class=\"faq-icon\" aria-hidden=\"true\">+<\/span>\n          <\/button>\n          <div class=\"faq-answer\">\n            <p>There is no single legal form that is appropriate for most founders. The GmbH is one of the most widely used forms where limitation of liability and a separate corporate structure are important. The UG may be considered where initial capital is limited, while a sole proprietorship or partnership may be appropriate for simpler structures with a different liability and tax profile. The right choice depends on the specific situation.<\/p>\n          <\/div>\n        <\/li>\n\n        <li class=\"faq-item\">\n          <button class=\"faq-question\" aria-expanded=\"false\">\n            <span>What is the key difference between GmbH and UG?<\/span>\n            <span class=\"faq-icon\" aria-hidden=\"true\">+<\/span>\n          <\/button>\n          <div class=\"faq-answer\">\n            <p>Share capital. The GmbH requires at least &euro;25,000 (&sect;&nbsp;5 GmbHG), the UG allows a start from &euro;1 (&sect;&nbsp;5a GmbHG). In return, the UG must allocate one quarter of its adjusted annual surplus to a statutory reserve and is limited to cash contributions at formation. The GmbH may have stronger market acceptance where banks, investors or business partners attach importance to the higher stated share capital and established corporate profile. Further detail is available on the <a href=\"\/en\/gmbh-formation-germany\/\">GmbH formation<\/a> and <a href=\"\/en\/ug-formation-germany\/\">UG formation<\/a> pages.<\/p>\n          <\/div>\n        <\/li>\n\n        <li class=\"faq-item\">\n          <button class=\"faq-question\" aria-expanded=\"false\">\n            <span>What is a GmbH &amp; Co. KG?<\/span>\n            <span class=\"faq-icon\" aria-hidden=\"true\">+<\/span>\n          <\/button>\n          <div class=\"faq-answer\">\n            <p>A GmbH &amp; Co. KG is a limited partnership whose personally liable general partner is a GmbH. The GmbH bears unlimited general-partner liability, but only with its own corporate assets. The limited partners remain subject to the statutory Haftsumme and contribution rules under &sect;&sect;&nbsp;171 and 172 HGB. The structure can avoid unlimited personal liability of a natural person in the typical arrangement, but it requires separate corporate, partnership and tax structuring.<\/p>\n          <\/div>\n        <\/li>\n\n        <li class=\"faq-item\">\n          <button class=\"faq-question\" aria-expanded=\"false\">\n            <span>Can I change the legal form later?<\/span>\n            <span class=\"faq-icon\" aria-hidden=\"true\">+<\/span>\n          <\/button>\n          <div class=\"faq-answer\">\n            <p>Many legal forms can later be reorganised. A registered GbR or commercial partnership may, where the statutory requirements are met, change legal form under the Umwandlungsgesetz. In other cases, an asset transfer, contribution or other restructuring may be required. Each route has corporate, tax, liability and cost consequences. Early advice is recommended before any such step.<\/p>\n          <\/div>\n        <\/li>\n\n        <li class=\"faq-item\">\n          <button class=\"faq-question\" aria-expanded=\"false\">\n            <span>What changed for the GbR under MoPeG 2024?<\/span>\n            <span class=\"faq-icon\" aria-hidden=\"true\">+<\/span>\n          <\/button>\n          <div class=\"faq-answer\">\n            <p>Since 1 January 2024, the BGB expressly distinguishes between a legally capable GbR that participates in legal transactions in its own name and a non-legally capable internal partnership (&sect;&sect;&nbsp;705 et seq. BGB, new version). The legally capable GbR can be registered in the partnership register as an eGbR. Registration is generally voluntary but is a legal precondition for certain transactions, including real-estate entries and changes to a GmbH shareholder list.<\/p>\n          <\/div>\n        <\/li>\n\n        <li class=\"faq-item\">\n          <button class=\"faq-question\" aria-expanded=\"false\">\n            <span>Why should I involve a lawyer for the choice of legal form?<\/span>\n            <span class=\"faq-icon\" aria-hidden=\"true\">+<\/span>\n          <\/button>\n          <div class=\"faq-answer\">\n            <p>Standard forms cover the standard case &mdash; not the decision between legal forms, not whether articles of association cover specific risks, and not the provisions for dispute, succession or exit. We advise on the choice of legal form as a strategic decision in conjunction with corporate-law drafting. Tax questions should be addressed with a tax adviser.<\/p>\n          <\/div>\n        <\/li>\n\n      <\/ul>\n    <\/div>\n  <\/section>\n\n  <section class=\"section-cta\">\n    <div class=\"container\">\n      <div class=\"cta-inner\">\n        <div class=\"section-label\">Request a consultation<\/div>\n        <h2 class=\"cta-heading\">Are you deciding between GmbH, UG, GbR or another legal form and want to put that decision on a sound legal basis?<\/h2>\n        <p class=\"cta-body\">Briefly describe your project using the enquiry form. We will assess which legal form may be suitable for your situation and whether we can take on the matter.<\/p>\n        <p class=\"cta-body page-meta\">Please do not send original documents or extensive attachments with an initial enquiry.<\/p>\n        <div class=\"cta-actions\">\n          <a href=\"\/en\/contact\/?topic=choice-of-legal-form\" class=\"btn btn-primary btn-lg\">Request a consultation<\/a>\n          <a href=\"\/en\/services\/\" class=\"btn btn-ghost btn-lg\">All services<\/a>\n        <\/div>\n      <\/div>\n    <\/div>\n  <\/section>\n\n\n<\/main>\n\n\n\n<script type=\"application\/ld+json\">\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@graph\": [\n      {\n        \"@type\": \"Service\",\n        \"@id\": \"https:\/\/kaganlegal-germany.com\/en\/choice-of-legal-form-germany\/#service\",\n        \"name\": \"Choice of Legal Form Germany \u2014 Legal Advice\",\n        \"description\": \"Legal advice on choosing the right business form in Germany \u2014 GmbH, UG, GbR, KG, OHG, GmbH & Co. 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The UG must allocate one quarter of its adjusted annual surplus to a statutory reserve and is limited to cash contributions at formation. The GmbH may have stronger market acceptance where banks, investors or business partners attach importance to the higher stated share capital.\"\n            }\n          },\n          {\n            \"@type\": \"Question\",\n            \"name\": \"What changed for the GbR under MoPeG 2024?\",\n            \"acceptedAnswer\": {\n              \"@type\": \"Answer\",\n              \"text\": \"Since 1 January 2024, the BGB expressly distinguishes between a legally capable GbR and a non-legally capable internal partnership (\u00a7\u00a7 705 et seq. BGB, new version). The legally capable GbR can be registered in the partnership register as an eGbR. Registration is generally voluntary but is a legal precondition for certain transactions, including real-estate entries and changes to a GmbH shareholder list.\"\n            }\n          },\n          {\n            \"@type\": \"Question\",\n            \"name\": \"Can I change the legal form later?\",\n            \"acceptedAnswer\": {\n              \"@type\": \"Answer\",\n              \"text\": \"Many legal forms can be reorganised. A registered GbR or commercial partnership may, where the statutory requirements are met, change legal form under the Umwandlungsgesetz. In other cases, an asset transfer, contribution or other restructuring may be required. Each route has corporate, tax, liability and cost consequences.\"\n            }\n          }\n        ]\n      },\n      {\n        \"@type\": \"BreadcrumbList\",\n        \"@id\": \"https:\/\/kaganlegal-germany.com\/en\/choice-of-legal-form-germany\/#breadcrumb\",\n        \"itemListElement\": [\n          {\n            \"@type\": \"ListItem\",\n            \"position\": 1,\n            \"name\": \"Home\",\n            \"item\": \"https:\/\/kaganlegal-germany.com\/en\/\"\n          },\n          {\n            \"@type\": \"ListItem\",\n            \"position\": 2,\n            \"name\": \"Company Formation & Corporate Law\",\n            \"item\": \"https:\/\/kaganlegal-germany.com\/en\/company-formation\/\"\n          },\n          {\n            \"@type\": \"ListItem\",\n            \"position\": 3,\n            \"name\": \"Choice of Legal Form Germany\",\n            \"item\": \"https:\/\/kaganlegal-germany.com\/en\/choice-of-legal-form-germany\/\"\n          }\n        ]\n      }\n    ]\n  }\n  <\/script>\n","protected":false},"excerpt":{"rendered":"<p>02 Home &middot; Services &middot; Company Formation &amp; Corporate Law &middot; Choice of Legal Form Choice of Legal Form for a German Business The choice of business form is one of the most consequential decisions in setting up a company. It determines liability, capital requirements, tax structure, external profile and governance for years ahead. Alexander [&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-80","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/kaganlegal-germany.com\/en\/wp-json\/wp\/v2\/pages\/80","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=80"}],"version-history":[{"count":0,"href":"https:\/\/kaganlegal-germany.com\/en\/wp-json\/wp\/v2\/pages\/80\/revisions"}],"wp:attachment":[{"href":"https:\/\/kaganlegal-germany.com\/en\/wp-json\/wp\/v2\/media?parent=80"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}