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Legal Form Finder
Which legal form fits you?
Sole proprietorship, GbR, UG or GmbH? Answer 4 questions and get the right legal form for you, with all the facts on liability, capital and costs.
In 60 seconds 6 legal forms compared No sign-up
Are you founding alone or as a team?
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All legal forms at a glance
| Legal form | Share capital | Liability | Notary | Cost (approx.) |
|---|---|---|---|---|
| Einzelunternehmen | No minimum capital | Unlimited | No | approx. €32 (trade registration in Bremen) |
| Freiberufler | No minimum capital | Unlimited | No | effectively €0 (registration with the Finanzamt) |
| GbR | No minimum capital | Unlimited | No | approx. €20 to €60 per partner |
| UG (haftungsbeschränkt) | From €1 (must build reserves up to €25,000) | Limited | Yes | approx. €400 to €500 (standard protocol, excluding share capital) |
| GmbH | €25,000 (at least €12,500 paid in) | Limited | Yes | approx. €600 to €800 (standard protocol, excluding share capital) |
| GmbH & Co. KG | €25,000 for the general-partner GmbH | Limited | Yes | approx. €1,150 to €1,500 (+ €25,000 share capital) |
Finding the right legal form: what matters
Your legal form determines liability, taxes, bookkeeping effort and your company's image. Rule of thumb: if you're starting alone and want it simple, a sole proprietorship (Einzelunternehmen) is the fastest. If you want to protect your personal assets, choose a UG or GmbH. And if you're founding as a team, a GbR or GmbH gives you the right tools. The final decision has tax and legal consequences, so I'll review your case in detail in the initial consultation.
Common questions about legal forms
GmbH or UG: which is better?
The GmbH (German limited liability company) needs €25,000 in share capital (at least €12,500 paid in), is seen as reputable and has good creditworthiness. The UG (haftungsbeschränkt), the “mini-GmbH”, can start from as little as €1, but must set aside 25% of its profit until it reaches €25,000. Both protect your personal assets. With little starting capital, the UG is a good entry point that you can later convert into a GmbH.
Do I need a notary for every legal form?
No. A sole proprietorship (Einzelunternehmen), freelancer (Freiberufler) and GbR can be set up without a notary. A UG, GmbH and GmbH & Co. KG must be notarised and entered in the commercial register (Handelsregister).
What's the difference between a trade (Gewerbe) and a liberal profession (Freiberuf)?
Freelancers (Freiberufler) practise a “liberal profession” under § 18 EStG (e.g. doctors, lawyers, designers, IT consultants): no trade registration (Gewerbeanmeldung), no trade tax, no mandatory IHK membership. All other activities are commercial (gewerblich) and require a trade registration.
Which legal form is cheapest?
The cheapest and fastest way to start is as a sole proprietorship (Einzelunternehmen) or freelancer (Freiberufler): no notary, no share capital. Limited-liability forms (UG/GmbH) cost more to set up, but in return they protect your personal assets.
Can I change my legal form later?
Yes. A change is possible, for example from a sole proprietorship to a GmbH, or from a UG to a GmbH. But it involves effort and cost, so it pays to choose the right form from the start.
All details as of 2025/2026 and without guarantee: for orientation, not legal or tax advice.
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