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Europe's largest economy with strong industrial base
Region
WESTERN EUROPE
Corporate Tax
30%
Setup Time
2 weeks
Currency
EUR
Germany, the EU's largest economy, offers access to sophisticated markets and industrial excellence. The country's robust legal framework and company registration processes support substantial business setup for companies seeking European leadership positioning.
With a population of 84 million, Germany provides diverse living from financial hub Frankfurt to tech center Munich to cultural Berlin. German is the official language, with English common in business. Quality of life is high with excellent infrastructure.
Healthcare is excellent through mandatory insurance covering comprehensive care. Safety is good with moderate crime rates. The cost of living varies by city, with Munich expensive and eastern cities more affordable.
The engineering culture and economic stability attract international professionals.
Corporate tax combined with trade tax creates effective rates of 30-33% depending on municipality. Personal income tax reaches 45% plus solidarity surcharge. VAT applies at 19% standard rate. The tax burden is substantial but supports excellent infrastructure.
The Euro provides currency stability. Germany's manufacturing excellence, export orientation, and central EU position drive global competitiveness. The "Mittelstand" of medium-sized companies exemplifies business model success.
Company registration requires notarization and commercial register entry. The GmbH (limited liability company) is the standard vehicle, requiring EUR 25,000 minimum capital (EUR 12,500 at formation). Foreign ownership faces no restrictions.
Company formation takes 2-4 weeks typically. At least one managing director is required. Annual financial statements must be filed with the commercial register, with audit requirements for larger companies.
BaFin (Federal Financial Supervisory Authority) regulates crypto custody and trading under banking law. A crypto license is required for regulated crypto activities. Germany was among the first EU countries to establish clear crypto regulation.
The framework provides legal certainty for established business models, with substantial compliance requirements.
The Interstate Treaty on Gambling regulates online gambling across German states. The gambling license framework includes sports betting and online slots/poker under the new regime. The common regulatory authority provides federal coordination.
The regulated market is substantial but highly compliance-intensive.
Bureaucracy and regulatory compliance create substantial administrative burden. Labor costs and social contributions are high. The German language is often necessary for effective business despite English proficiency.
Banking access is excellent through major German and international banks. Professional services are world-class. Germany's industrial reputation provides strong business credibility.
Germany suits manufacturing, technology, and businesses seeking premier European market access for their business setup.
Local: GmbH
Local: AG
Local: KG
Local: Zweigniederlassung
| Corporate Tax Rate | 30% |
| Personal Income Tax Rate | 45% |
| VAT / Sales Tax | 19% |
| Capital Gains Tax | 0% |
| Withholding Tax | 25% |
| Reduced Corporate Tax Available | No |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | EXCELLENT |
| Financial Privacy | LOW |
| Currency Controls | NONE |
| Local Bank Account Required | Yes |
| Non-Resident Bank Account Allowed | No |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | Yes |
| AML Officer Required | Yes |
| MLRO Required | Yes |
| Compliance Officer Required | No |
| Data Protection Officer Required | Yes |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $125,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF Travel Rule / EU MiCA compliant |
| Business Plan Required | 3-year business plan with financial forecasts, strategy, and business model description required |
| Personnel Required | CEO, AML Officer/MLRO (and deputy), Compliance Officer, IT Security Officer |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | BaFin maintains public register of licensed CASPs |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Federal Financial Supervisory Authority (BaFin) |
| Licensing Fee | $50,000 |
| Licensing Fee Details | BaFin application fees €10,000-€50,000 depending on license type, plus legal/advisory costs €50,000-€200,000. Annual supervision fees up to €500,000 based on business complexity |
| Permitted Business Models | Crypto custody, Trading platform operation, Exchange services, Order execution, Portfolio management, Transfer services |
| Permitted Activities | Custody and administration of crypto assets, Operating trading platforms, Exchange of crypto for fiat/crypto, Execution of client orders, Advice and portfolio management, Transfer services |
| Restricted Activities | Non-compliant stablecoins (e.g., USDT), Privacy coins subject to AML scrutiny |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |
| Derivatives Allowed | Yes |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $5,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Comprehensive business plan with player protection concepts, AML policies, technical security documentation |
| Personnel Required | Managing Director, AML Officer, Responsible Gambling Officer, Technical Manager |
| Insurance Required | Yes |
| Insurance Details | Security deposit of €5 million required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | GGL whitelist publicly available at https://www.ggl-behoerde.de |
| Renewal Period | 5 years initial, 7 years renewal |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Quarterly |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Joint Gambling Authority of the Federal States (Gemeinsame Glücksspielbehörde der Länder - GGL) |
| Licensing Fee | $185,000 |
| Licensing Fee Details | Initial application fee €185,000, plus 5.3% tax on player stakes. Annual supervision fees based on gross gaming revenue |
| Permitted Business Models | B2C online sports betting, Virtual slot machines, Online poker |
| Permitted Activities | Sports betting, Virtual slots, Online poker. Online casino table games (roulette, blackjack) regulated at state level with limited licenses |
| Restricted Activities | Social betting, Financial betting, Secondary lotteries prohibited. Lotteries subject to state monopoly. €1 maximum stake on slots, €1,000 monthly deposit limit |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $350,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | PSD2/FATF compliant |
| Business Plan Required | Comprehensive multi-year business plan with financial projections, risk assessments, and operational details |
| Personnel Required | Managing Director(s), Compliance Officer, AML/MLRO Officer, IT Security Officer |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | BaFin maintains public registry of authorized payment and e-money institutions |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Federal Financial Supervisory Authority (BaFin) and Deutsche Bundesbank |
| Licensing Fee | $8,515 |
| Licensing Fee Details | BaFin authorization fee €6,150 (single service) to €8,515 (multiple services). EMI license requires €350,000 initial capital; Payment Institution requires €125,000 (full services) or €20,000 (money remittance only). Annual supervision fees based on total assets |
| Permitted Business Models | Electronic Money Institution (EMI), Payment Institution (PI), Account Information Service Provider (AISP), Payment Initiation Service Provider (PISP) |
| Permitted Activities | E-money issuance, Payment account management, Direct debits, Credit transfers, Card payments, Money remittance, Payment initiation, Account information services |
| Restricted Activities | Deposit-taking and lending require full banking license. Investment services require separate MiFID license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |