Germany
We prepare the corporate income tax and trade tax returns of German GmbH and UG companies owned from India. We have no office in Germany. Our team in India does the work. Formation and share transfers go through a German notary, and audits are done by German audit firms.
Checked against the sources on 14 November 2026. Each figure links to the authority that published it.
Germany at a glance
- Tax on company profits
- About 30% in total: corporate income tax of 15%, a 5.5% solidarity surcharge on that tax, and trade tax set by the municipality1
- VAT
- 19% standard rate, 7% reduced rate2
- GmbH share capital
- €25,000, with at least half paid in before registration3
- UG share capital
- Less than €25,000, paid in cash in full4
- Managing director
- Need not live in Germany. The company needs a German business address3
- Annual tax returns
- Due by 31 July of the following year, filed through ELSTER5
- Annual financial statements
- Sent to the Company Register within 12 months of the balance sheet date6
- Authorities
- The local tax office, the commercial register at the local court and the Company Register
Checked against the sources on 14 November 2026.
What we do in Germany
- Prepare the corporate income tax and trade tax returns
- Keep the filing calendar, including the date for sending the annual financial statements to the Company Register
- Arrange the formation of a GmbH or UG with a German notary
- Prepare the ODI and APR filings in India when the shareholder is Indian
What a GmbH or UG files each year
| Filing | With | When |
|---|---|---|
| Corporate income tax, trade tax and VAT returns | Tax office | By 31 July of the year after the tax year. The date can be extended. Returns are filed electronically through ELSTER.5 |
| Annual financial statements | Company Register | Within 12 months of the balance sheet date. A micro company submits only its balance sheet, and a small company its balance sheet and notes.6 |
A company registered late in the year still files for that year. Our note on the short first year gives the dates.
How company profits are taxed
Corporate income tax is 15%, and a solidarity surcharge of 5.5% is added to that tax. Trade tax is charged by the municipality. A base rate of 3.5% is multiplied by a local multiplier, which cannot be lower than 200% and averages a little over 400%. Together the taxes come to about 30% of profit.1
The corporate income tax rate is set to fall by one percentage point a year for five years, starting in 2028.1
GmbH or UG
A GmbH needs share capital of €25,000, and at least half must be paid in before the company is registered. The articles are notarised, which can be done online, and the company is entered in the commercial register.3
A UG is a GmbH with less than €25,000 of capital. The capital is paid in cash in full, and the company keeps back a quarter of each year’s profit until its reserves reach €25,000.4
If the shareholder is in India
A GmbH or UG owned by an Indian company or resident is an overseas direct investment under FEMA. Form FC goes to the bank before the first remittance, and an Annual Performance Report (APR) is due by 31 December each year.7, 8
When the Indian investor controls the company, the APR is based on audited financial statements, whatever German law requires of a company that size.8 Plan the German year-end accounts and the audit for the APR together.
The Indian steps are set out on our page for Indian businesses with a company abroad.
Questions we are asked
Does the managing director have to live in Germany?
No. The company does need a business address in Germany.3
Can a company be formed without a notary?
No. The articles of a GmbH or a UG have to be notarised. A UG can use model articles, which lowers the notary’s fee.3, 4
Sources
- Germany Trade and Invest, Corporate taxation in Germany.
- Germany Trade and Invest, Value-added tax.
- Germany Trade and Invest, Setting up a GmbH.
- Germany Trade and Invest, Mini-GmbH (limited liability entrepreneurial company).
- Germany Trade and Invest, Tax declarations.
- Bundesanzeiger Verlag, Disclosure of annual financial statements in the Company Register. The publisher operates the Company Register.
- Reserve Bank of India, Foreign Exchange Management (Overseas Investment) Directions, 2022. A.P. (DIR Series) Circular No. 12, 22 August 2022.
- Reserve Bank of India, Foreign Exchange Management (Overseas Investment) Regulations, 2022. Notification No. FEMA 400/2022-RB, 22 August 2022.