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By Simone Janson (More) • Last updated on October 13.10.2008, XNUMX • First published on 13.10.2008/XNUMX/XNUMX • So far 4385 readers, 1234 social media shares Likes & Reviews (5 / 5) • Read & write comments
The Limited is the English form of the GmbH with the abbreviation Ltd. Such a foundation is also possible in Germany and is correspondingly popular, especially if you are working abroad.
Every fourth start-up in Germany should be a limited company! The Limited is popular because it Internet is advertised accordingly. The big, seemingly tempting advantage of a limited company is that, like a GmbH, liability is limited to private assets. But there are restrictions: As a director of a limited company, you have to be personally liable for certain breaches of duty. Because this limitation of liability only applies to contractual partners.
So it can help people who can not pay their bills anymore. The assertion, however, that self-employed persons could limit their liability for the consequences of mistakes is simply wrong: anyone who inflicts damage to another due to gross negligence is liable for this with his full private capacity - regardless of the legal relationship he has committed the mistake ,
After all, you do not need 25.000 € deposit capital, as with a limited company, but initially only 2 pounds. Nevertheless, the Limited is only worthwhile for those who already planned to green a limited company. For small entrepreneurs, a limited company still has some disadvantages:
The Limited is also used as an opportunity for entrepreneur and Boy Companys Applied. For start-ups and small companies was the Choice limited by the company form. Usually it remained with a risky GbR, the formation of a GmbH was simply too expensive. The most recent judgment of the Federal Court of Justice on company law now also helps less financially strong German companies to set up a so-called Euro-GmbH.
The European Court of Justice had already ruled in its judgment on November 05.11.02th, XNUMX that entrepreneurs who legally operate within the EU Society set up in order to circumvent domestic (anti-entrepreneurial) company law, act lawfully. The Federal Court of Justice confirmed this judgment on March 13.03.2003, XNUMX and thus recognized the legality and legal capacity of companies founded abroad. The judgment of the Federal Court of Justice (BGH) now allows GmbHs founded in other European countries to have legal capacity in Germany. The BGH thus bowed to the judgment of the European Court of Justice (ECJ). So far, Germany had opposed the
Companies from other EU countries are blocked from bringing legal action in Germany. But this violated the guaranteed European freedom of establishment and thus against EU law. The European Court of Justice passed a ruling that makes it more attractive to set up a company abroad. But who benefits, which disadvantages have to be taken into account and which tax peculiarities apply here? Entrepreneurs found a company within a state of the European Union, this type of company must also be recognized in the other EU states (so-called foundation theory).
Since there are significant differences in the minimum capital required in the individual Member States, especially when founding corporations, the establishment of a foreign company can be worthwhile. If you have to invest at least 25.000 EUR when establishing a German GmbH, it is only 7.500 EUR in France, 3.000 EUR in Spain and 2 Pound in the UK.
But this apparently cheap start-up also has disadvantages from a competitive point of view. customers and business partners are often suspicious when a limited or a société anonyme appears on the letterhead. Orders are preferentially awarded to German companies, with whom one can fight a legal dispute on German soil in case of doubt. The tax office also usually suspects a company behind an English 2-pound limited that only wants to shield its shareholders and protect profits from the German state by clever relocation. Frequent and, above all, more intensive checks are therefore pre-programmed.
Before founding a foreign company, one should definitely Conversation with one tax– or look for management consultants. Also important: Despite being founded abroad, such corporations are often used for corporation tax in Germany. The reason: According to Section 1 (1) of the Corporation Tax Act, a foreign corporation is already subject to unlimited tax liability in Germany if it has its management in Germany.
With less risk: In particular, start-ups and small and medium-sized companies benefit from the new legal situation. The founding act is thanks to the clear simpler company law in England is no longer associated with bureaucratic and time-consuming hurdles.
The start is faster, cheaper and safer. Because the biggest advantage: Personal liability is excluded with a Euro-GmbH. So far, young and smaller companies in particular could hardly afford to raise 25.000 euros of equity for a German GmbH. So it often stayed with a GbR, combined with high risk. Because as the owner of these companies, you are liable with your entire personal Wealth. By founding a limited company in England, you can now eliminate this risk. Without a large investment of capital. In fact, no more than 279 euros are necessary to turn a German sole proprietorship or GbR into a Euro-GmbH.
German companies can take advantage of the sometimes much lower hurdles that exist abroad for founding a GmbH and still yours Shops continue to operate in Germany. This repealed the case law that had been practiced for years and had prevented this. Every European can therefore set up a limited company in the UK, even if he only does so with the Objective makes to bypass the German (or other European) anti-business company law. It takes less than 2 weeks to set up your Limited (a one-day service is also possible).
Large companies regularly outsource operating risks to new companies and set up expensive GmbHs or AGs for this purpose. Nonetheless, these are Costs still low considering the risks compared to a “non-spin-off”! As a result of the judgement, start-ups and all small and medium-sized enterprises (SMEs) have the opportunity to set up their own companies, for example for high-risk business areas. This is among others useful, if you fear, for example, warnings from competitors or claims for damages.
Should your Company A being actually “charged” will not affect your other Limiteds. Or you use a Limited if you do not want to appear under your previous company name, for example to test a new business area or to expand a business area. It makes sense to outsource companies if you have high demands in one business area. Should these fail, this will not affect your other business areas. This protects your company and jobs from insolvency in the other business areas. A simple establishment of a holding structure (also with the holding of any previous company shares of a GmbH) is possible.
After all, you have to reckon with a series of sanctions if these regulations are not complied with. Anyone who does not meet the deadlines set by the English authorities will land fast on a so-called black list. In any case, fines of up to £5.000 will apply.
In the worst case, the Limited will simply be deleted by the authorities. She ceases to exist. Anyone who continues to work with a deleted Limited in Germany will inevitably get one Problems.
European law offers decisive advantages, in which more and more German entrepreneurs are participating. However, here it is even more important than in the rest of business life to ensure that everything is completed legally correct from the start, because founding a new company is a matter of trust and represents the basis for all future business. In order to ensure this, the choice of the founding partner is crucial Significance.
For these reasons, one should be warned against companies that offer limited company formations at a low price without pointing out the numerous obligations of such a company in England. If you want to set up a limited company, which often does not have the reputation and reputation in Germany Trust owns a limited liability company, it is important that you contact a reputable specialist who understands the requirements of English company law Eye has and have a trustworthy partner and properly manages the Limited in England.
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Simone Janson is publisher, Consultant and one of the 10 most important German bloggers Blogger Relevance Index. She is also head of the Institute's job pictures Yourweb, with which she donates money for sustainable projects. According to ZEIT owns her trademarked blog Best of HR – Berufebilder.de® to the most important blogs for careers, professions and the world of work. More about her im Career. All texts by Simone Janson.
Great article, is it normal that the menu items in the navigation overlap?
I also have such a limited foundation behind me and can only recommend it. It is really easier than in Germany.
The great, tempting advantage of a Limited is that liability is here, as in the case of a limited liability company, restricted to private assets.
Liability only with the paid-up capital but not with the private assets!
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