The Joint stock company (Aktiengesellschaft, AG)

(Joint-stock company; public limited company; corporation)
Gesellschaft mit beschränkter Haftung (GmbH) 

To set up this kind of company there must be at least one person who may be the only shareholder of the company, too. A share capital of ? 50,000 is required; the shares may be (but need not be) listed on the stock exchange. Articles of association, authenticated by a notary, are needed to set up an AG. The company becomes legally existent as an AG when it has been entered into the Register of Companies. The name of the AG is usually taken from the purpose of the enterprise and it must contain the words "Aktiengesellschaft" or a common abbreviation of it (e.g. ?AG?).

An AG must have a board of directors (Vorstand) empowered to decide all matters relating to the operation and the management of the business. The board of directors is appointed by and responsible to the Supervisory Board (Aufsichtsrat). The shareholders of an AG exercise their power with regard to the company at regularly scheduled General Meetings (Hauptversammlungen).

Overview

LiabilityThe shareholder's liability is limited to his capital contribution.
Statutory capitalEuro 12,500.00
Corporate bodiesBoard of directors, supervisory board, shareholders' meeting
Financial StatementsMandatory
Income taxationEBIT - Trade tax on income of 12% - 21%
= Tax basis for corporation income tax
- Corporate income tax 26.375%
= Earnings after income taxes

Dividend withholding tax 20%, reduced to 0% - 15% by double tax treaties, can be 0% within EC.
Consultinghouse - Martin Wilke

Martin Wilke

Managing Director
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