Can the money for capitalizing the company be used or is it gone for good?
Yes, the money can be used after funding the company but this needs to be carefully structured. The capital for your company has left you for good and is now with your company – like giving it to your sister. You can use the funds for everyday needs of the company. It's not permissible to simply return it to the shareholder if you want avoid personal liability.
Do I have to have a German bank account?
Not all, you can take any bank you want - important is only the IBAN number. The law does not explicitly mention the requirement of a bank account but practically you cannot work without one. Latest, paying a German authority requires cashless payment. Depending on your nationality, it can be more or less easy to open an account. FinTechs providing online bank accounts or pure online banks are opening more and more. We have compiled a list of banks that you can choose from.
For which nationalities is it difficult to open a business bank account?
Typically such countries which are know for shadow business will experience problems when living abroad and wanting to open an account over here. Unfortunately, American citizens belong to this category.
American citizen have an issue to open a business account in Germany? Come on, this cannot be true! In the States, we have constantly learning who great the US is.
Why can't you open an account for my company?
Well, we love to serve and take care of you but when dealing with a bank, we would be collaborating with a third party on which we have no influence. Besides, you will have certain needs and expectations that you wish to have met. All this is beyond our abilities. Besides all that, you yourself have to establish a good banking relationship if at any time you might want a loan or other kind of support.
Gosh, I am stunned! This stupid bank turned me down. Can't I insist that they take my company?
We regret your disappointment but such is life. No-one has the right to demand from any bank that they provide with an account. The only exception is for the so-called P-Account but that is only for private persons – not business.
Why do you to collect and cover the fees of the authorities during remote founding? This makes your offer seem so very expensive.
Simple! We want to take care of you and expedite the proceedings. Payments inside Germany arrive faster. We will argue with them if the fees are incorrect – without charging you. One less detail for you to worry about. Especially the notary will be pleased to learn that his payment is secured and will jump to serve you via me. Otherwise, both notary and Commercial Registry will each expect payment first before implementing anything. It's simply more difficult to sue a person for fees when living abroad...
I just realized for opening my GmbH, I can also pay the funding capital in half. That's awesome! But tell me, when do I have to pay it up?
It can happen that you never have to pay it up! You know, there only three situations when that money will be demanded:
- when the shareholders call it in,
- when the bankruptcy manager stretches out his hand,
- when winding up the company, insufficient funds exist.
Does my start-up company have to give me a contract of employment immediately as shareholding director? We have not yet converted any money. I still have savings and can therefore be well prepared for the near future.
If you are asked this by the tax office, this is not bad at all. The authority just wants to know "whether" or "whether not". There is no obligation that you have to be employed at all. When you should give yourself an employment contract is an economic question, for which you should short-circuit with your tax consultant.