Change Your Business Structure in Germany

Change Your Business Structure in Germany

Updated on Monday 14th May 2018

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Change Your Business Structure in Germany

Many investors start their activity in Germany with a small scale business structure, but very often at some point a company may need to change its legal structure in order to accommodate new targets and objectives. The German Company Law (Gesellschaftsrecht) allows business owners to reorganize their enterprise by choosing that legal form which is most suitable with the new size and strategy of the company.

Our law firm in Germany assists foreign investors with the process of changing the business structure of an enterprise in this country.
The following video summarizes the possible legal structure changes in Germany:


When to change your business structure in Germany?

A good time for a change in the structure of a company is when the number of employees has risen or when the initial objectives for which the enterprise has been opened have been accomplished and the business is ready to enter another level. 
Most often, limited liability companies (Gesellschaft mit beschränkter Haftung - GmbH) intend at some point to enter the stock market and to become public. For example you could reorganize it into a Aktiengesellschaft (AG) (Joint-stock company or corporation). As a consequence the company will be opened to new business opportunities and future development. 
Similarly, a sole trader company whose profits have grown significantly may change into another legal form available in Germany. For example, by taking on a partner the company can become a general partnership and explore the new business opportunities provided by this new scheme. 
Our attorneys in Germany can familiarize you with the company legislation in this country so that you can easily change the legal entity of your company.

How to change your business structure in Germany?

One of the main requirements in order to change the business structure of your enterprise is to have a meeting of the board of the company in which to take a decision on the specific needs of the enterprise and the most suitable choice for a new legal form. If you have a sole proprietorship, you can take this decision by yourself, on the base of the local legislation and formal requirements. 
The dissolution of the previous business form is usually one of first steps done in the process of changing the legal structure of a company. Consequently a business owner can register a new legal form with the German Trade Register.
If you have decided to  change the business structure of your enterprise, don’t hesitate to contact our law firm in Germany for professional assistance.