Living in Maxvorstadt: student quarter with historical flair

Planned more than 200 years ago in the name of King Maximilian, this is how today’s trendy Maxvorstadt district came into being. The structure of the former garden city can still be seen today. The properties are characterised by the classicist style of the architects of the time and the street grid is constructed at right angles. This not only delights the many European tourists who are drawn here on the trail of German history, but also the 54,000 residents of the district.

Welcome to Munich: The capital of Bavaria

As one of the most important economic metropolises in Germany, Munich enjoys not only a good reputation, but also a lot of influx. With a population of around 1.7 million, Munich is now Germany’s third-largest city. The unemployment rate is low, the technology and science sector is booming, and the ever-growing automotive and aviation industries are constantly creating new jobs. Families, couples, students, entrepreneurs and investors – everyone feels at home in Munich.

Maxvorstadt: Map and location

Maxvorstadt is located in the northern part of Munich and inspires as a hotspot for art, culture and science. The hotel offers a range of services and amenities. It is also home to a variety of clubs, bars and restaurants. The hotel offers family rooms and non-smoking rooms. The hotel offers family rooms and non-smoking rooms.

Places of interest: Botanical Garden, Ludwig Church, Monuments & Co.

The district Maxvorstadt in the west of Munich can look back on a long and moving history. So you can find here not only architectural treasures, but also a variety of historical buildings of past years, memorials from the Nazi era, a variety of churches, as well as many monuments and museums.

Among the most famous sights of Maxvorstadt are:

• Old Botanical Garden
• Bavarian State Library
• White Rose Memorial
• German Theatre Museum
• Ludwigskirche
• St. Boniface
• Wittelsbach Fountain

Tour through Maxvorstadt: The most beautiful streets of the trendy quarter

Join us on our tour through the breathtaking Maxvorstadt!

Read more here! Munich: Most expensive streets

Königsplatz: Greek holiday feeling in Brienner Straße

Adalbertstraße: Noble quarter near the old northern cemetery

Akademiestraße: Renovated apartments in old buildings & existing properties

Richard-Wagner-Straße: Real estate designed by Leonhard Romeis

Real estate & prices per square metre in Maxvorstadt

Maxvorstadt is densely populated. This not only leaves little space for green areas and parks, but also for building land. While there are a few new buildings, the old existing properties with their historic flair make up the charm of the district. This is particularly noticeable in the prices per square metre.

Real estate as an investment: Buy an apartment or house

Space is scarce in Maxvorstadt. While families with children prefer the spacious properties in Bogenhausen, wealthy retired people the communities around Lake Tegernsee and successful entrepreneurs and investors the former artists’ quarter of Schwabing, the trendy district of Marxvorstadt is particularly appealing to young workers and well-heeled students. As a result, apartments are in particular demand here. At €10,100 per square metre, these are twice as expensive as houses.

Here’s the comparison:

• Buy a house: 5.050 €/m²
• Buy apartment: 10.100 €/m²

Rent a plot of land: High rents for old & new buildings

In hardly any other district of Munich are the rents for old and new buildings as similar as in Marxvorstadt. The reason for this is the rapid fluctuation in the district. Average rent levels have risen rapidly as a result of constant new lettings. Whereas 15 years ago a square metre of a house cost just under €14, it now quickly costs between €20 and €22.

Rent increase by 30% within 15 years

Conclusion: Living in Maxvorstadt

Living and living in Munich. Many dream of this! Especially Maxvorstadt inspires with its classicist buildings, long history and unique charm. Young professionals and wealthy students in particular are drawn here, settling in the areas around the university. Richard-Wagner-Straße, Akademiestraße and Adalbertstraße are also among the trendiest and most exclusive corners of the trendy quarter. Especially apartments are in demand here – after all, space is scarce in Maxvorstadt. This is particularly noticeable in the high prices per square metre. An experienced real estate agent not only accompanies you through the entire purchase process, but also advises you on the topics of taxes and real estate, renovation and modernization with craftsmen, architects & Co, as well as real estate valuation and off market.

Munich: Real Estate in Bavaria

Munich is the most populous city in Bavaria and the third largest municipality in Germany. With around 4,800 inhabitants per square kilometre, the Bavarian metropolis is also the most densely populated municipality in Germany. The figures confirm the population growth. More and more people want to live in the Bavarian metropolis. The proximity to the Alps and neighbouring Austria make Munich very attractive.

Real estate in Munich

Munich counts itself as one of the economic metropolises of Germany. It is also famous for its high quality of life and the surrounding nature. The hotel offers a range of services and amenities, including a restaurant, a dining area, a bar, a conference room and a business centre.

• Real Estate Munich

Living in Munich: Popular districts & residential areas

In no other German city is housing as expensive as here. Experts agree that a property in Munich in the right neighbourhood is a safe investment. But what does ‘right location’ mean in Munich and what kind of investment should one expect to make in order to buy a decent apartment or a luxurious house in the capital of Bavaria? We answer these questions here! To the overview: Living in Munich

• Bogenhausen
• Glockenbachviertel
• Haidhausen
• Maxvorstadt
• Nymphenburg
• Schwabing
• Lake Starnberg
• Tegernsee
• Grünwald

Sell, buy and live in Munich

More and more people want to live in the Bavarian metropolis. The proximity to the Alps and the neighbouring country Austria make Munich very attractive and also the individual districts have a lot to offer. While Lehel and the old town convince with their historical charm, the residential areas of Bogenhausen and Schwabing inspire with their variety of well-kept green spaces and parks. The vibrant Maxvorstadt and the elegant Nymphenburg are also among the most attractive places to live in Munich. Do you want to sell your apartment, your apartment building or your own property here? With our free guides on selling real estate in Munich, you are well prepared. To the overview: Selling real estate in Munich.

• Neuhausen-Nymphenburg
• Lehel
• Old Town
• Schwabing
• Bogenhausen
• Maxvorstadt

Joint stock company: formation, advantages and disadvantages

In the following, you will find out everything you need to know about setting up an AG. How do you become a shareholder of an AG? What are incomplete and complete companies? What are the advantages? What are the disadvantages? How do I set up a company? What is a company? Many questions – many answers! Plus everything you need to know about taxes and real estate trading.

If you’re considering forming a corporation, the first thing you need to know about is the formation process: Who can incorporate, when, at how many, what exactly… what are the differences and similarities between the various forms of corporate law? It is equally important to know the advantages and disadvantages of an AG: From profit distribution to saving taxes – an overview of the seven most important founding criteria for you.

What are the founding criteria?

1. Number of shareholders
2. Management
3. Foundation
4. Company name
5. Funding
6. Liability
7. Profit distribution

Corporation AG: Management according to HGB

In the entrepreneurial world, there are many different forms of business you can choose from. They are roughly divided into two categories, namely sole proprietorship and companies, which in turn are divided into incomplete companies – these include dormant companies and BGB companies – and complete companies – partnerships, corporations and some more.

The stock corporation – AG for short – is one of the so-called complete companies and, in contrast to incomplete companies, is not subject to the German Civil Code (BGB) but to the German Commercial Code (HGB). As a corporation, the AG has a more complex structure than other forms of corporate law, since – like a limited liability company (GmbH) – it cannot simply be founded informally, but rather certain formal requirements must be met in advance for the company to be founded. This essentially includes the notarial certification of the shareholders’ agreement.

Other typical corporations:

• European Company (Societas Europaea, abbreviated to SE)
• Partnership limited by shares (KGaA)
• Entrepreneurial company / UG (limited liability)
• Limited liability company (GmbH)

Together with the GmbH, the stock corporation is the best-known form of corporation. In Germany, it is primarily chosen as the legal form for listed companies and is considered the “big sister” of the limited liability company – not least because of the higher founding capital.

Legal form variant AG & Co KGaA – KGaA with general partner AG

Sometimes the AG also appears in combination with a partnership limited by shares (KGaA). Family businesses, for example, occasionally organise themselves as Aktiengesellschaft & Compagnie Kommanditgesellschaft auf Aktien – in short: AG & Co KGaA. In this case, they form a stock corporation in the legal sense – however, the general partner as a personally liable partner is not just any natural person, but specifically also a stock corporation. If the general partner is instead embodied by a GmbH, it is referred to as a GmbH & Co KGaA, and in the case of a Societas Europaea, as an SE & Co KGaA.

More about the individual hybrid forms:

• GmbH & Co KGaA – see limited liability company (GmbH)
• SE & Co KGaA – see Societas Europaea (SE)

Companies operating under the legal form variant of AG & Co KGaA have only existed since the end of the 1990s, following the unambiguous declaration of open legal issues by a court ruling of the Federal Court of Justice (BGF). The holding company of the well-known Hornbach Baumarkt AG, Hornbach Immobilien AG and Hornbach Baustoff Union GmbH has opted for the formation of an AG & Co KGaA, as have many other companies from a wide range of sectors: Ticketing & Live Entertainment, Medical and Security Technology, Adhesives, Cleaning Agents and Beauty Care, to name but a few.

Examples of AG & Co KGaA companies:

• CTS EVENTIM AG & Co. KGaA
• Drägerwerk AG & Co. KGaA
• Fresenius Medical Care AG & Co. KGaA
• Henkel AG & Co. KGaA
• HORNBACH HOLDING AG & Co. KGaA
• ProCredit Holding AG & Co. KGaA

CEWE Stiftung & Co. KGaA is a special case: In this company, the general partner is embodied by a foundation. In principle, the partnership limited by shares is possible in all conceivable combinations, as GUB Investment Trust KGaA points out as an example.

Continue reading here on the topic of setting up a family foundation:

• Establish a family foundation

Establishment & Formation of an AG – From Articles of Association to Registration

You want to found an AG and live your dream of independence in reality? No problem! Because for the foundation of a GmbH a natural – or legal – person is completely sufficient. If you want, you can be the sole founder of the company – called a shareholder – and thus automatically be the sole managing member of the board of directors. Such a one-person AG is often called a “small public limited company”. However, it is not possible to go it alone: a “small AG” must appoint at least three supervisory board members, which means that the smallest possible public limited company consists of four people.

The process of founding an AG can be divided into two phases, namely the internal formation of the AG and the external formation of the AG. While the first phase is basically a kind of preparatory phase or pre-foundation – in other words, it forms the basic framework for your public limited company – in the second phase you present your company to the public.

Phase 1 – Preparation & Basic Framework

You set up your public limited company internally. One of the most important steps is to draw up articles of association for your AG – also known as a shareholders’ agreement – which must later be certified by a notary public. For the formulation of the articles of association, all founding members must be fully present and the future executive board and the future supervisory board must also be present. At this first meeting it is decided how announcements are to be made in the company and how many board members are to be appointed.

Together you also decide on the company name – i.e. the name of your company as it is to be entered in the commercial register -, the registered office, the amount of share capital – 50,000 euros or more – as well as the nominal value and the number of shares, including details of the respective share type. From bearer shares to par value shares – find out more about the individual types of shares here:

• Types of shares – transferability, legal scope & share capital breakdown

The second step is the acquisition of the shares and the appointment of the bodies of a joint stock company, which must be notarized. The deposit of the securities itself can also take place after the notary appointment. Optionally, the auditor for the annual financial statements can already be appointed here. The supervisory board then appoints the management board of the public limited company as its first official act. At this point at the latest, the contributions must also be paid into the business account until at least a quarter of the share capital has been recorded.

Phase 2 – Entry in the Commercial Register

To complete the formation process for your public limited company, your company must be entered in the commercial register. This step equips the public limited company with its own legal personality and signals to the public that a new public limited company exists on the market. The founding members together with the supervisory board and executive board carry out the application for registration in the commercial register together. An overview of all supervisory and executive board members, various deeds and notarial certifications are required, the contribution of the shares must be documented and a price for the subsequent share issue must be defined.

After all documents and records have been submitted, the registration court assesses whether the formation of the public limited company has been carried out properly. In a final step, the entry is made in the commercial register and your public limited company is officially deemed to be established.

The foundation process at a glance

Here is an overview of all the steps up to the official, externally effective formation of your corporation:

• Phase 1 – Establishment in the internal relationship
  • Adoption of the Articles of Association (certified by a notary)
  • Share acquisition
  • Appointment of the AG bodies (notarized)
  • Appointment of the auditor, if applicable
  • Payment of deposits (min. 1/4 share capital)
• Phase 2 – External incorporation
  • Application for registration
  • Submission of documents & records
  • Assessment by the registry court
  • Entry in the register of companies

Entry in the Commercial Register: The most important applications for AG founders

The internal relationship determines the beginning of the company as the date contractually agreed between the shareholders. In the external relationship, however, the formation of the AG is dated on the first action on behalf of the company, i.e. at the latest with the binding entry in the commercial register. Registration costs you on average around 200 to 300 euros and is usually carried out by a notary.

As you are registered in the commercial register as a shareholder of an AG, you can officially trade under a company name – just like a shareholder of a GmbH. This means that your company has a company name, i.e. an official name, which you can freely design together with the other shareholders. It doesn’t matter whether it’s a personal company, a real company, a fancy company or a mixed company… As long as the name is in line with the prohibition of misleading people and bears the suffix “AG”, almost anything is allowed.

Tax ID, Trade Licensing Office, Articles of Association & Notary Public

You will first receive a tax identification number – tax ID for short – from your local tax office, which serves as a basic prerequisite for all other formalities and applications. The registration of your AG as a company or commercial enterprise is carried out by the Trade Licensing Office for a processing fee of approximately 10 to 65 euros.

According to the law, there is no obligation to make additional contributions for stock corporations, in contrast to cooperatives with and without limited liability, just as there is for general partnerships (Offene Handelsgesellschaften, OHG) or limited partnerships (Kommanditgesellschaften, KG). In the case of shares with restricted transferability, however, it is possible to stipulate in the articles of association that the shareholders are to make recurring payments – excluding cash payments. The precise ancillary obligations of shareholders are explained in the German Stock Corporation Act (AktG).

Excerpt from the law – § 55 AktG:

(1) If the transfer of shares is subject to the consent of the company, the articles of association may impose on shareholders the obligation to make recurring non-cash contributions in addition to the contributions to the share capital. In doing so, they must determine whether the payments are to be made against payment or free of charge. The obligation and the scope of the benefits shall be stated in the shares and interim certificates.
(2. The statutes may lay down contractual penalties in the event of failure to fulfil the obligation or failure to fulfil it properly.

Excerpt from the law – § 180 AktG:

(1) A resolution imposing ancillary obligations on shareholders shall require the consent of all shareholders concerned in order to be effective.

(2) The same shall apply to a resolution by which the transfer of registered shares or interim certificates is made subject to the consent of the Company.

Equity capital: 50,000 Euro Share capital & reserves

The share capital of a joint-stock company is called capital stock, because it forms the basis for the equity capital of the joint-stock company. The share capital is defined as the sum of all contributions and is given the term “subscribed capital” in the balance sheet. A prerequisite for registration in the commercial register is the payment of the required share capital of at least 50,000 euros into the business account. This means that twice as much share capital is required for the formation of a public limited company as for the formation of a private limited company, where 25,000 euros is sufficient as share capital. A return of the share capital to the shareholders is not permitted.

Excerpt from the law – § 57 AktG:

(1) Shareholders may not be repaid their contributions. The payment of the purchase price in the case of a permissible acquisition of treasury shares shall not be deemed to be a return. Sentence 1 shall not apply in the case of payments which are made in the event of the existence of a control or profit and loss transfer agreement (§ 291) or which are covered by a fully-fledged claim for consideration or restitution against the shareholder. Sentence 1 also does not apply to the return of a shareholder loan and payments on receivables from legal acts that correspond economically to a shareholder loan.
(2) Interest may neither be promised nor paid to shareholders.
(3) Prior to the dissolution of the Company, only the distributable profit may be distributed among the shareholders.

The second pillar of equity is the capital reserves. This includes all amounts that are added to equity, for example by means of a premium – alternative designation: issue premium or premium – i.e. the amount by which securities are priced above their nominal value. If shares are issued, the premium must be allocated to the capital reserves and thus contributes to the equity capital shown in the balance sheet. In addition, there are the revenue reserves, which are made up of the statutory reserves, the reserves under the articles of association and other reserves.

Caution: Reserves and provisions are not the same thing: Reserves are amounts of money that are saved for security or emergencies. Reserves, on the other hand, represent future liabilities and therefore do not count as equity under any circumstances!

Dividend & Reserve Accumulation

The distribution of profits takes place differently in the joint-stock company Kraft legal form than in other forms of corporate law. As a share trading business, the shares are understood as profit shares, whereby one share corresponds exactly to one profit share. The shareholders of an AG therefore also do not receive a profit distribution, as is the case with the general partnership (OHG), the limited partnership (KG) and optionally also the limited liability company (GmbH), they rather receive so-called dividends. The distribution of dividends is decided by the general meeting.

In addition, the German Stock Corporation Act (AktG) requires stock corporations to form legal reserves until ten percent of the share capital is reached. For this purpose, five percent of the net income for the year is added to the statutory reserves each year – after adjustment of the net income for any losses carried forward from previous years. The same applies to the capital reserve, where contributions must also be made until the ten percent mark is reached.

Other revenue reserves are possible within the framework of the adoption of the annual financial statements by the Management Board and Supervisory Board. The allocation may amount to a maximum of half of the net income for the year; higher amounts are only permitted if the Articles of Association allow this. Further contributions may be made to the reserve if a corresponding resolution has been passed at the Annual General Meeting.

AG Organs: Management Board, Supervisory Board & Annual General Meeting

A joint stock company consists of several organs. These bodies are divided into:

1. The Board,
2. The Supervisory Board and
3. Annual General Meeting.

The Management Board deals with the day-to-day business and other matters of the company and represents the stock corporation externally. The Supervisory Board is a legally prescribed self-monitoring body that appoints and monitors the individual members of the Management Board and, in case of doubt, also removes them. Furthermore, it is responsible for the written reporting of the annual financial statements as well as for annual reports. The Annual General Meeting acts as the decision-making body of the stock corporation.

Liability of an AG – internal relationship & external relationship

In the event of a loss, the stock corporation as a legal entity under private law is, to a certain extent, subject to a limitation of liability, because the liability burdens – with a few rare exceptions – exclusively the business assets of the company. In the external relationship, therefore, only the share capital is liable for any losses. In the internal relationship, however, the liability claim can vary depending on the governing body of the AG.

• Liability in the external relationship with the AG: through share capital
• Liability in the internal relationship with the AG: by the executive bodies

If you want to know in detail how a limitation of liability for shareholders, management board and supervisory board affects the internal relationship, read more here:

• Limitation of liability for AG bodies

Advantages: Limitation of liability, financial independence & Co

After presenting the typical features of a public limited company, you have certainly already recognised the advantages that this legal form offers you: The high initial capital also makes the AG a reputable legal form, which can be an advantage especially in matters of company financing. Financial institutions are therefore often willing to issue good loans and business partners and customers gain more security due to the good credit rating.

At the same time, the financial risk remains relatively low, as the liability claims are limited to the share capital and the AG shareholders cannot be held liable externally with their private assets. Plus: As a listed legal form, stock corporations are financially independent through the IPO.

• Respected legal form
• High credit rating
• More security for banks, business partners & customers
• Low financial risk due to limitation of liability
• Financial independence through IPO

Disadvantages: Share capital, formal incorporation & GewSt

The disadvantages that the formation of an AG can bring with it are also quickly located: On the one hand, the high share capital of at least 50,000 euros is an obvious problem for many start-ups. Also the social adhesion measures itself accordingly on at least 50,000 euro. The foundation may not take place informally, but is subject to extensive formalities and specifications. Banks can easily leverage the exemption from liability if, despite high creditworthiness, they aim for a directly enforceable guarantee from the shareholders. Last but not least, the AG is subject to trade tax and, depending on the purpose of the company and how it is handled, has to pay further taxes.

• High share capital required
• Liability based on share capital
• No informal incorporation
• Banks may require directly enforceable guarantees
• High trade tax levies

Evaluation: Low-risk legal form for large companies

After comparing the advantages and disadvantages, it becomes clear that the formation process is significantly more complex and extensive than is the case, for example, with a civil law partnership (GbR) or even a limited liability company (GmbH). In addition to the formal formation, the appointment of the individual bodies of an AG is also obligatory and the formation process as a whole is very time-consuming. It is rather difficult for small to medium-sized companies to raise the necessary share capital. For larger companies, however, the legal form of an AG may be a good option for expanding and gaining an international foothold.

A public limited company makes particular sense if business projects are planned that are exposed to a high level of risk, as the shareholders can protect themselves well through limitations of liability in the external relationship and optionally also in the internal relationship and their private assets remain unaffected. Fast-growing companies can also benefit from the formation of an AG.

Immobilien AG: Holding, trading, managing, letting

You don’t think the idea of an AG is bad at all and are now asking yourself how you can combine your capital company with the real estate business? A real estate company is a company that serves the financing, development, realization, leasing or marketing of real estate – starting with a single property up to a real estate portfolio in the three- or multi-digit range. The management of real estate property or third-party real estate on behalf of third parties can also be handled by a real estate company.

• Real Estate AG / REIT-AG

Taxes for AG shareholders: corporate income tax, trade tax, VAT, capital tax & income tax

As a shareholder of a public limited company, you need to know about some types of tax, because when you set up your company, you receive income from your business and must of course also pay tax on this. In accordance with tax law, sales tax must therefore naturally be paid, insofar as the AG does not only carry out tax-free sales. Profit distributions to the shareholders of an AG are also subject to capital gains tax – for natural persons in the company, income tax is of course also due.

The following applies to all corporations: They are subject to corporate income tax. The payment of trade tax is also obligatory for an AG, even if all founding members were freelancers, because by virtue of its legal form it is always regarded as a commercial enterprise.

• Corporate income tax (KSt)
• Income tax (ESt)
• Capital gains tax (KapESt)
• Value added tax (VAT)
• Trade tax (GewSt)

Here’s the entire list:

• Taxes in Germany

Attention: As already mentioned, the obligation to pay corporation tax and trade tax does not apply to REIT real estate companies as soon as the real estate company fulfils the legal requirements!

You can find out what taxes you can expect with a real estate corporation here:

• Save taxes on real estate

Conclusion: Public limited company – For whom is it worthwhile?

The formation of a public limited company requires a large amount of capital and an equally large amount of administrative work. For this reason, an AG is more worthwhile for large companies which, on the one hand, have the corresponding financial resources and, on the other hand, are already characterised by a certain routine in business processes and legal issues. Start-ups with monetary reserves and real estate investors are given an attractive opportunity by an AG to realise their dreams and entrepreneurial goals.

In the real estate industry, stock corporations are a stable legal form for the purpose of real estate preservation, real estate management as well as trading with and brokering real estate portfolios. If you are already trading within the meaning of the REITG, you can expect significant tax benefits. Real estate stock corporations are worthwhile for a variety of people of different professions: From builders to financiers to real estate fund shareholders, the real estate corporation can contribute significantly to stable cash flow and capital growth.

Tip: Apart from the stock exchange, a public limited company without a stock exchange listing is particularly suitable for families to jointly manage existing real estate portfolios.

Comparison: Sole proprietorship, one-man GmbH, small AG or entrepreneurial company?

If you plan to set up your business on your own, you can choose between different legal forms of business: On the one hand, there is the classic sole proprietorship, in which you act as a freelancer or registered trader, or set up a small business. Alternatively, you can choose between the one-man limited liability company and the entrepreneurial company – often referred to as a “mini-GmbH” – or set up a small public limited company.

You can find out more about the different legal forms for solo founders here:

• Sole proprietorship (EU)
• One-man limited liability company – see GmbH
• Entrepreneurial company / UG (limited liability)

Sole proprietorship & one-person GmbH

Basically, there is not much difference between the two legal forms of a sole proprietorship and a single-member company, because in both cases you are the sole shareholder with sole power of management and sole power of representation. However, the decisive difference arises in the form of the liability issue: As a registered businessman (e. Kfm.) or registered businesswoman (e. Kff.) you are liable without limitation, directly and jointly and severally – as the sole shareholder of a one-person GmbH, on the other hand, you are liable exclusively for the business up to the amount of the capital contribution you have made.

Are you a sole proprietor yourself and no longer want to bear the enormous liability risk? Then you should think about converting your sole proprietorship into a one-person limited liability company. The change of form is easily accomplished, but can make a huge difference in case of losses! In order to avoid personal liability, as part of the registered traders (e. K.) you only need a notarial certificate confirming a value of at least 25,000 euros for your business and submit this to the commercial register together with the opening balance sheet. The sole proprietorship is practically brought into the GmbH as a contribution in kind.

Entrepreneurial company & small public limited company

Alternatively, you can consider setting up an entrepreneurial company (UG). Often referred to as a “small GmbH” or “mini-GmbH”, this legal form of company is a sub-form of the conventional limited liability company, but unlike the “normal” GmbH, it only requires a single euro as share capital. It is therefore particularly attractive for solo founders who do not have 25,500 euros in their bank account. Without the share capital of a GmbH, however, your image with the banks could be lower and your chances of getting a good loan could decrease.

The so-called “small AG” is primarily intended for individual shareholders who wish to keep their public limited company within a small group of people. Apart from the individual shareholder, who also equally assumes the role of the management board, only three other persons are required to be appointed as supervisory board members. However, the formation of a public limited company, regardless of its size, is very time-consuming and more cost-intensive than the other common forms of corporate law. Therefore, a one-person limited liability company or an entrepreneurial company may be more suitable if you intend to found your company on your own. Alternatively, you might also consider setting up a sole proprietorship.

AG: Special case real estate and more

1. Real estate stock corporation (REIT-AG)
2. Real estate shares: List of companies
3. Legal forms: List

Real estate stock corporation (REIT-AG)

Real estate stock corporation / REIT-AG – You don’t find the idea of a stock corporation bad at all and are now wondering how you can combine your capital company with the real estate industry? A real estate company is a company that serves the financing, development, realization, leasing, or marketing of real estate – starting with a single property up to a real estate portfolio in the three or multi-digit range. The management of real estate property or third-party real estate on behalf of third parties can also be handled by a real estate company.

• Real estate stock corporation (REIT-AG)

Real estate shares: List of companies

Real Estate Shares – Not everyone can afford real estate as a capital investment. Through real estate shares, however, everyone can participate in the real estate market and invest money. The share prices of the big players are rising year after year. Vonovia, Deutsche Wohnen, Dream Global, CBRE and Patrizia are a few of the best known active companies in Germany. In addition, there are more than 25 other companies. We have an overview of the most popular real estate stocks for you as an investor. But first a look at the risks of a stock, the stock market, for beginners and beginners. Now to the list and more on the real estate market, your investment options and all prices at a glance, here in the article on real estate stocks.

• Real Estate Stocks

Legal forms in Germany

Legal forms – What types of company are there? If you want to start your first company, then choosing the ideal legal form is one of the first steps in the process of setting up a company. Whether it’s a special real estate company or a start-up, I’ve summarized all the types of companies in Germany for you here.

• Legal forms: List

Company types in detail:

• Sole proprietorship
• Registered businessman / registered businesswoman (e. K.)
• Civil law partnership (GbR)
• General partnership (OHG)
• Limited partnership (KG)
• Entrepreneurial company (UG)
• GmbH: Limited liability company
• Real estate GmbH / Asset management GmbH
• Real estate stock corporation (REIT-AG)
• Societas Europaea (SE)
• Foundation / Family Foundation

One-person limited liability company: corporation for 1 person

The formation of a limited liability company requires at least one person. One-person companies tend to be the exception, but from a purely legal point of view, mono-corporate one-person companies are certainly permissible in the case of the GmbH as well as the Aktiengesellschaft (AG). In the case of a limited liability company, the term “one-person GmbH” – alternatively also “one-man GmbH” or “Einmann-GmbH” – is often used.

Other GmbH models with special features:

• Two-person limited liability company
• No-Person-GmbH

Emergence of solo founders – self-decision, exit & e. K.

The one-person GmbH can come into being in three ways: Either you consciously decide to become a solo founder, or you were originally in a two-person GmbH or multi-person GmbH and have been reduced to a one-person company by the withdrawal of the other shareholder(s). Alternatively, you are a registered trader and have the necessary share capital to change your legal form to a one-person GmbH.

Tip: If you basically do not want to manage your GmbH alone and divide the capital burden among several heads, but still want to decide alone on the structure and wording of the articles of association, you can form a one-man GmbH in the first step and take on any number of additional shareholders in the second step. The decisions you make in the pre-incorporation phase then automatically apply to the new shareholders as well.

Special features of the one-person GmbH: § 181 BGB and § 3 GmbHG

With a one-man limited liability company, you are automatically the sole shareholder and take the position of managing director. You also participate in the shareholders’ meetings in a so-called personal union. Apart from that, the same rules and laws apply to you as to companies with several shareholders. This also means that you must form all the corporate bodies prescribed for a GmbH – for example, the supervisory board. For this reason, it is particularly important that as sole managing director of a single-member company, you exempt yourself from the single standard “insichgeschäft” (section 181, see above) laid down in the German Civil Code.

In the case of a one-person GmbH, the shareholders’ agreement does not have to be notarised prior to registration in the commercial register and is therefore usually quite short, taking into account the minimum content required by the Limited Liability Companies Act (GmbHG). However, you need a non-receivable unilateral declaration of intent to complete your registration, and this in turn must be certified by a notary.

Excerpt from the law – § 3 GmbHG:

(1) The memorandum and articles of association shall contain:

1. The company name and registered office,
2. The object of the company,
3. The amount of the share capital,
4. The number and nominal amounts of the shares that each shareholder takes over in return for a contribution to the share capital (nominal contribution).

(2) If the company is to be limited for a certain period of time or if other obligations towards the company are to be imposed on the shareholders in addition to the payment of capital contributions, these provisions must also be included in the company statutes.

Establish a GmbH: Legal form and alternatives

1. No-person GmbH: inheritance, gift, termination
2. Two-person GmbH: Founder Duo
3. Limited liability company (GmbH)
4. Special case: Real estate GmbH
5. Legal forms: List

No-person GmbH: inheritance, gift, termination

No-Person GmbH – The model for a GmbH without shareholders! By appointing new shareholders or leaving existing shareholders, the limited company model you choose can easily change. Whether it’s a one-person company, a two-person limited company or even a company that operates without shareholders at all…. In each case, there are specifics that you should be aware of as they deviate from the norm of the traditional limited liability company.

• No-Person-GmbH

Two-person GmbH: Founder Duo

Two-person GmbH – The GmbH model for founding duos! By appointing new shareholders or leaving existing shareholders, the GmbH model you choose can easily change. Whether it is a one-person company, a two-person GmbH or even a company that operates without any shareholders at all… In each case, there are specifics you should be aware of as they deviate from the norm of the traditional limited liability company.

• Two-person limited liability company

Limited liability company (GmbH)

Limited Liability Company (Gesellschaft mit beschränkter Haftung, GmbH) – The limited liability company is a German legal form that is founded by at least one person and managed by at least one shareholder. As the name already indicates, this corporate legal form is characterized by a limitation of liability for its shareholder(s).

• Limited liability company (GmbH)

Special case: Real estate GmbH

Immobilien GmbH / Vermögensverwaltende GmbH / Immobiliengesellschaft – In this article you will learn the basics about real estate companies. Who would think of founding a limited liability company when buying a house or a condominium? Admittedly, this makes no sense for owner-occupation, but it does for renting.

• Real estate company

Here you will find all the legal forms that can be chosen as a founder in Germany and a guide with a checklist:

Legal forms: List

Legal forms – What types of company are there? If you want to start your first company, then choosing the ideal legal form is one of the first steps in the process of setting up a company. Whether it’s a special real estate company or a start-up, I’ve summarized all the types of companies in Germany for you here.

• Legal forms: List

Organs of a GmbH – management, control & resolution

A limited liability company can only function if all its bodies work together. This requires a high level of trust and an equally high level of reliability for the individual shareholders.

Managing Director – The Management Body

A GmbH has at least one managing director who, according to his employment, is characterised by a management authority in the internal relationship and a power of representation in the external relationship. This can be one of the GmbH shareholders – one then also speaks of shareholder managing directors – but does not have to be. The term of office is not limited in time.

Supervisory Board – The supervisory body + Labour Director

The composition of the supervisory board is prescribed in different legal sources depending on the number of employees of a company. A supervisory board consists of both members of the company – i.e. the shareholders – and employees, with all members of the supervisory board having the same rights and obligations.

If the company has fewer than 500 employees, the law does not require the establishment of a supervisory board. In this case, the GmbH may decide for itself whether or not a supervisory body appears to make sense for the company from a situational point of view.

One-Third Participation Act for more than 500 employees

If there are more than 500 employees, the One-Third Participation Act (DrittelbG) comes into play. This limits the supervisory board to a minimum of three and a maximum of 21 council members. The size of the supervisory board is directly related to the size of the company. As the name of the law suggests, one third of the supervisory board must be made up of employees, who are elected as employee representatives by the entire workforce in a ballot.

Montan Co-Determination Act for more than 1,000 employees (coal and steel industry)

Coal and steel companies with more than 1,000 employees are subject to the Coal and Steel Co-Determination Act (Montan-MitbestG). Companies that are active in mining and the iron and steel producing industry are considered to be part of the coal and steel industry. The supervisory board is formed on an equal footing between the employer side and the employee side. In addition, the so-called “neutral man” is appointed. As a rule, the supervisory board consists of eleven members – depending on the share capital, it can be expanded to 15 or 21 members if necessary. Furthermore, there is a requirement to appoint an equal member to the Board of Management as Director of Labor Relations. All members of the Supervisory Board are elected at the Company’s Annual General Meeting, taking into account the proposals made by the Works Council.

Co-determination Act for more than 2,000 employees

In the case of more than 2,000 employees, on the other hand, the German Co-Determination Act of 1976 (MitbestG) applies. Accordingly, the supervisory board is composed of equal numbers of employees and shareholders. The shareholders’ side provides the chairman of the supervisory board, who may make use of his double vote in the event of a stalemate. In addition, an equal member must be appointed to the management board to take the position of labor director. Depending on the size of the company, between twelve and 20 supervisory board members may be appointed according to the MitbestG. If the GmbH does not have more than 8,000 employees, the election takes place directly; in all other cases, the election is conducted by secret ballot and is subject to the principles of proportional representation.

Shareholders’ meeting – The decision-making body

A shareholders’ meeting is convened by registered letter from the managing director(s). During the meeting, the GmbH shareholders can discuss and vote on important matters of the company, which is why the shareholders’ meeting is also defined as a decision-making body. Each shareholder receives votes in proportion to his share in the company. Thereby, the shareholder is granted one vote per 50 Euros.

Establish a GmbH: Legal form and alternatives

1. Limited liability company (GmbH)
2. Special case: Real estate GmbH
3. Legal forms: List

Limited liability company (GmbH)

Limited Liability Company (Gesellschaft mit beschränkter Haftung, GmbH) – The limited liability company is a German legal form that is founded by at least one person and managed by at least one shareholder. As the name already indicates, this corporate legal form is characterized by a limitation of liability for its shareholder(s).

• Limited liability company (GmbH)

Special case: Real estate GmbH

Immobilien GmbH / Vermögensverwaltende GmbH / Immobiliengesellschaft – In this article you will learn the basics about real estate companies. Who would think of founding a limited liability company when buying a house or a condominium? Admittedly, this makes no sense for owner-occupation, but it does for renting.

• Real estate company

Here you will find all the legal forms that can be chosen as a founder in Germany and a guide with a checklist:

Legal forms: List

Legal forms – What types of company are there? If you want to start your first company, then choosing the ideal legal form is one of the first steps in the process of setting up a company. Whether it’s a special real estate company or a start-up, I’ve summarized all the types of companies in Germany for you here.

• Legal forms: List