Checked against the sources on 14 November 2026.
A GmbH or UG that takes the calendar year as its financial year, and starts in the autumn, has a first year of a few weeks or months. It is tempting to fold so short a year into the next one. German law does not allow it.
Why the first year cannot be stretched
The Commercial Code says a financial year may not be longer than twelve months.1 A company that begins on 1 October 2026 cannot draw up its first accounts to 31 December 2027. Its first year ends on 31 December 2026, unless its articles set a different year end.
The United Kingdom works differently. A UK company’s first accounts usually cover more than twelve months.2 A founder who has set up a company there should not expect the same in Germany.
What the short year still needs
- Tax registration. The company completes the tax registration questionnaire through ELSTER within one month of being established.3, 4
- An opening balance sheet, drawn up when the business begins.1
- Annual financial statements for the short year, made up of a balance sheet and a profit and loss account. They are drawn up within three months of the year end, or within six months by a small company.1
- Tax returns for the short year. The corporate income tax, trade tax and VAT returns are due by 31 July of the following year and are filed through ELSTER.3
- Disclosure. The financial statements go to the Company Register within twelve months of the balance sheet date. A micro company sends only its balance sheet.5
A company is small if it stays within two of three limits: a balance sheet total of €7.5 million, turnover of €15 million and 50 employees. It is a micro company if it stays within two of these: €450,000, €900,000 and ten employees.1
The dates for a company that starts on 1 October 2026
| When | What |
|---|---|
| On starting | Opening balance sheet.1 |
| Within one month | Tax registration questionnaire through ELSTER.4 |
| 31 March 2027 | Annual financial statements for October to December 2026. A small company has until 30 June 2027.1 |
| 31 July 2027 | Corporate income tax, trade tax and VAT returns for 2026.3 |
| 31 December 2027 | Financial statements for 2026 sent to the Company Register.5 |
| 31 December 2027 | Annual Performance Report to the RBI, where the shareholder is Indian.6 |
If the shareholder is in India
The share capital is sent before the company is registered. A GmbH needs €25,000 of capital, and at least half is paid in before registration.7 Form FC therefore goes to the Indian bank, and the UIN is allotted, before the money is due in Germany.8, 6
The Annual Performance Report (APR) is due by 31 December. Where the foreign company’s year ends on 31 December, it is due by 31 December of the next year. The short year to 31 December 2026 is therefore reported by 31 December 2027, on audited financial statements when the Indian investor controls the company.6
So the short year needs an audit for the APR, whatever German law asks of a company that size. Tell the German accountant at the start, so that the year-end accounts and the audit are planned as one job.
What we do for German companies is on our Germany page. Dates for all nine countries are in the filing calendar.
Sources
- Federal Ministry of Justice, Commercial Code (Handelsgesetzbuch), English translation. Sections 240, 242, 264, 267 and 267a.
- GOV.UK, Your limited company’s first accounts and Company Tax Return.
- Germany Trade and Invest, Tax declarations.
- German Federal Portal, Register a company or self-employed activity for tax. Updated 20 April 2026.
- 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) Regulations, 2022. Notification No. FEMA 400/2022-RB, 22 August 2022.
- Germany Trade and Invest, Setting up a GmbH.
- Reserve Bank of India, Foreign Exchange Management (Overseas Investment) Directions, 2022. A.P. (DIR Series) Circular No. 12, 22 August 2022.