What you should know about the Gbr (partnership under civil law)

Gbr (partnership under civil law) important basic data

Is it a non-domicile company?

The Gbr is not a non-domicile company, but a German form of company in which the founders are liable with their private assets.

Is this legal form internationally recognized?

The Gbr as a company form is less common internationally and therefore may not be recognized in all countries.

What are the rules for dissolution or liquidation?

The dissolution or liquidation of a Gbr can be complex and depends on various factors, such as the number of shareholders and the ownership of assets. It is advisable to consult a lawyer or legal advice.

What are the requirements regarding the company structure and the managing directors?

A Gbr must have at least two shareholders. Each partner can become a managing director and the company structure is flexible.

What accounting and reporting obligations exist?

A UG has accounting and reporting obligations like any other corporation. This includes keeping proper accounts, preparing annual financial statements and complying with disclosure and publicity obligations.

Is it a legal entity and does it have limited liability?

The Gbr is not a legal entity and has no Limitation of liability. The shareholders are liable with all their private assets.

How high should the share capital be?

There are no requirements for the share capital of a Gbr.

What does the foundation cost?

The formation of a Gbr is inexpensive as it does not require notarization. Small fees for commercial law registrations may be incurred.

Is such a company subject to corporation or trade tax? If yes, what is the percentage?

A Gbr is generally not subject to corporation or trade tax. However, the shareholders pay income tax on the profits of the Gbr.

How high is the VAT allowance for online trade, services and trade in tangible goods?

For the Value added tax in Germany there is no general tax-free amount. However, the small business regulation stipulates that small businesses with an annual turnover of less than €22,000 are exempt from the Value added tax are exempt.

Are any other taxes due?

In addition to the shareholders' income tax, further tax obligations may arise depending on the company's activities (e.g. trade tax, property tax, etc.).

Is the company's income included in the managing director's income? If not, do the directors and employees only have to pay personal income tax on their own income?

In the case of a Gbr, the profits of the company are attributed to the partners and taxed as part of their income. The partners pay income tax on their total income, including the profits from the Gbr. Employees pay income tax on their earned income, while the Gbr as an employer pays social security contributions.