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Corporate Finance and Investment: Seminar 3 & 4 Dr. Martin T. Holi Jacobs University 2019

This document summarizes different types of legal entities under German law that are available for businesses. It discusses sole traders, partnerships like OHG, limited liability companies like GmbH and UG, and public limited companies like AG. For each type it provides a brief overview of capital requirements, liability, registration needs, governing laws and typical structures. Statistics on recent registrations of different legal entities in Bremen are also presented. The document appears to be from a seminar on corporate finance and investment taught by Dr. Martin Holi at Jacobs University in 2019.

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Dally Kun
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50 views10 pages

Corporate Finance and Investment: Seminar 3 & 4 Dr. Martin T. Holi Jacobs University 2019

This document summarizes different types of legal entities under German law that are available for businesses. It discusses sole traders, partnerships like OHG, limited liability companies like GmbH and UG, and public limited companies like AG. For each type it provides a brief overview of capital requirements, liability, registration needs, governing laws and typical structures. Statistics on recent registrations of different legal entities in Bremen are also presented. The document appears to be from a seminar on corporate finance and investment taught by Dr. Martin Holi at Jacobs University in 2019.

Uploaded by

Dally Kun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Corporate Finance

and Investment
Seminar 3 & 4
Dr. Martin T. Holi
Jacobs University 2019
Corporate Finance
Corporate Law

Legal Entities
(Rechtsformen)

Dr. Martin Holi (Corporate Finance and Investment) 2


Legal Entities
Overview

Legal Entities
(German Law)

Limited
Sole Traders Partnerships Mixed Forms Companies Others

BGB-Gesellschaft / UG / GmbH / Ltd. Gesellschaft mit Verein


Freiberufler / GbR beschränkter Haftung (Associations)
Gewerbetreibende (civil-law corporations) & Co. KG (GmbH) Limited

Unternehmer-
Stiftungen
eingetragene Offene Handels- gesellschaft
(Foundations)
Kaufleute gesellschaft (OHG) (haftungsbeschränkt)
(e.Kfm. / e. Kff.) General Partners

Aktiengesellschaft
Genossenschaften
Kommandit- (AG)
(Coops)
gesellschaft (KG) Public Company
General & Limited
Partners
Foreign law entities
(e.g. UK Limited)

Dr. Martin Holi (Corporate Finance and Investment)


3
Corporate Finance
Sole Trader

• No capital requirements
• Business registration required (32€ in Bremen)
• Unlimited liability (high risk)
• Operating under the founders’ names
• Trading name possible (Geschäftsbezeichnung)
• Majority of German businesses

Dr. Martin Holi (Corporate Finance and Investment)


4
Corporate Finance
Partnerships: OHG

• No capital requirements
• Business registration required (32€ in Bremen)
• Unlimited liability (high risk)
• Operating under the founders’ names
• Trading name possible (Geschäftsbezeichnung)
• Majority of German businesses

Dr. Martin Holi (Corporate Finance and Investment)


5
Corporate Finance
GmbH

• Gesellschaft mit beschränkter Haftung


• Limited liability company
• Minimum share capital requirement: 25.000 €
• One to unlimited shareholders
• Court registration required
• dedicated law: GmbHG
• starting capital can be spend,
it is not a capital reserve!
Dr. Martin Holi (Corporate Finance and Investment)
6
Corporate Finance
UG (haftungsbeschränkt)

• UG (haftungsbeschränkt)
• sub-form of GmbH (§5a GmbHG)
• Minimum capital requirement: 1 €
• Response to UK-Limited relocating to Germany

Dr. Martin Holi (Corporate Finance and Investment)


7
Corporate Finance
GmbH / UG Formation

• Shareholders’ agreement
• Share capital (formation by cash or in kind)
• Corporate name (firm)
• Company headquarter
• Statutes
• Executive organs (Geschäftsführer)
• Notary certification
• Court registration
Dr. Martin Holi (Corporate Finance and Investment)
8
Corporate Finance
AG

• Aktiengesellschaft (AG)
• Public limited company
• Minimum share capital requirement: 50.000 €
• One to unlimited shareholders
• Board of Directors, Supervisory Board and General
Meeting
• Court registration required, dedicated law: AktG
• Required for stock exchange listing
Dr. Martin Holi (Corporate Finance and Investment)
9
Corporate Finance
Registration (1. HY 2014) in Bremen

Kffm /
Vereine (40) Kffr.
(43)

GmbH & Co. KG (94)


GmbH (325)

Unternehmergesellschaft
(94)

GmbH (325) Unternehmergesellschaft (94) GmbH & Co. KG (94)


Vereine (40) Kffm / Kffr. (43) OHG (7)
Partnerschaftsgesellschaft (5) KG (2) AG (2)
Rechtsform aus. Rechts (2) Genossenschaft (1) SE (1)

Dr. Martin Holi (Corporate Finance and Investment)


10

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