Germany is a popular destination for foreigners due to its strong economy‚ rich culture‚ and high standard of living. If you’re a foreigner planning to start a business in Germany‚ you may be interested in forming a UG (Unternehmergesellschaft)‚ also known as a “mini-GmbH.” One of the key steps in setting up a UG is to buy a shelf UG‚ which is a pre-registered company that has not conducted any business activities.
What is a Shelf UG?
A shelf UG is a company that is registered with the German Commercial Register but has not started operating. It is called a “shelf” company because it is considered to be “sitting on a shelf‚” waiting to be purchased and used by a new owner. Shelf UGs are often used by foreigners who want to start a business in Germany quickly‚ as they can save time and avoid the complexities of registering a new company.
Benefits of Buying a Shelf UG
- Fast establishment: Buying a shelf UG allows you to start your business immediately‚ as the company is already registered.
- Simplified administrative process: The seller will typically handle the necessary paperwork and formalities‚ making the process easier for the buyer.
- Established credit history: Although the shelf UG has not conducted any business‚ it has a registered existence‚ which can be beneficial when applying for credit or opening a bank account.
How to Buy a Shelf UG in Germany
To buy a shelf UG in Germany‚ you can follow these steps:
- Find a reputable provider: Look for a reliable provider of shelf UGs‚ such as a law firm or a company formation service.
- Choose a suitable shelf UG: Select a shelf UG that meets your needs‚ taking into account factors such as the company’s name‚ registered office‚ and share capital.
- Purchase the shelf UG: The seller will transfer the ownership of the shelf UG to you‚ and you will become the new managing director and shareholder.
- Notarize the sale: The sale of the shelf UG must be notarized by a German notary public.
Things to Consider When Buying a Shelf UG
While buying a shelf UG can be a convenient way to start a business in Germany‚ there are some things to consider:
- Due diligence: Make sure to conduct thorough research on the shelf UG and its history.
- Costs: The cost of buying a shelf UG can vary depending on the provider and the company’s characteristics.
- Tax implications: Be aware of the tax implications of buying a shelf UG‚ as there may be tax liabilities or benefits to consider.
Alexander Braun, Corporate Solutions Manager
Expert in German company structures, business registration procedures, and corporate support services. Works with international clients interested in establishing businesses in Germany.
