GRP Rainer Rechtsanwälte: Experience in choosing the right corporate form
Choosing the right corporate form can contribute significantly to the success of a business. GRP Rainer Rechtsanwälte has the requisite experience in setting up companies.
GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London conclude: Company law recognizes many types of company, each with their own advantages and disadvantages. Particularly when establishing a new business, the choice of corporate form can prove to be a decisive factor, even contributing to the company’s success or lack thereof. The law firm GRP Rainer Rechtsanwälte Steuerberater has a great deal of experience in the field of company law. Its competent lawyers can assist in finding the appropriate corporate form.
To this end, the first thing that needs to be done is to clarify the company’s objectives and how best to achieve these. This is the basis on which the right corporate form ought to be chosen. German company law recognizes various types of company, including both partnerships and corporations such as the Gesellschaft bürgerlichen Rechts (GbR) [partnership organized under Germany’s Civil Code] and the Aktiengesellschaft (AG) [stock corporation]. Due to the principle of freedom of establishment within the EU, it also encompasses corporate forms from foreign legal systems. The Gesellschaft mit beschränkter Haftung (GmbH), a type of private limited company in Germany, is undoubtedly one of the more well-known and popular corporate forms. One reason for this is the low risk of liability for shareholders and managing directors. This aspect can be as significant as a company’s capital expenditure or liability for taxation.
A number of factors need to be taken into account and borne in mind when setting up a company. In order to find the best solution, it is a good idea to obtain interdisciplinary advice spanning across a wide range legal fields. GRP Rainer Rechtsanwälte Steuerberater is able to provide this advice from a single source and arrive at a solution together with the client that fulfils the latter’s wishes.
After coming to a decision on the corporate form, it is then necessary to flesh out and draft the agreements in detail. Rights and obligations need to be defined and competences delineated. The more precisely agreements are drawn up, the lower the risk of legal disputes emerging among the shareholders at a later stage that have the potential to jeopardize the company’s very existence.