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How Do You Start a Business in Germany as a Foreign Company?
Foreign companies typically establish a GmbH in Germany in 8-10 weeks, with bank account opening taking a further 2 weeks-3 months months. Alternatives include Non-Resident Payroll (NRP) for direct employment without an entity or Employer of Record (EOR) as a short-term bridge while entity setup is in progress.
Timeline
8-10 weeks for GmbH entity setup; 2 weeks-3 months for bank account
Requirements
Shareholders documents, registered address, local tax registration
Options
GmbH entity, NRP or EOR depending on your needs
GoGlobal Support
Berlin office, local banking partnerships, end-to-end setup
Key Facts
Choose Your Path to Germany
What Are My Options for Setting up a Business in Germany?
Option 1
Option 2
Comparison Table
EOR vs NRP vs Entity
| Factor | EOR (Germany) | NRP (Germany) | German Entity (GmbH/UG) |
| Speed to hire | Fast (4-6weeks) | Medium (4-6 weeks) | Slow (2-6 weeks) |
| Setup effort | Very low | Medium | High |
| Upfront cost | Low | Low–medium | High |
| Ongoing cost | Predictable per person | Lower fees, more admin | Higher at first, cost-effective at scale |
| Who is the employer? | EOR | You | You |
| Can you sell locally? | Yes (with limits) | Usually no | Yes |
| Best for team size | 1–10 people | 1–5 people; longer-term direct employment | 5+ people |
| Best for | Quick entry | Quick entry, market test | Long-term presence |
What’s Involved in Starting a Business in Germany?
- GmbH Establishment: Complete setup including notary, registration, articles of association
- Berlin Domiciliation: Registered address and mail handling services
- Local Director Services: Nominee director or guidance on appointing your own
- Company Secretarial: Ongoing compliance and regulatory filings
- Bank Account Opening: Leverage our partnerships with banks for faster processing
- Dormancy/Liquidation: Exit support when needed
- Payroll Registration: Wage tax number (if available) and employer registration with statutory social insurance carriers
- Monthly Payroll Processing: Gross-to-net calculations, payslips and monthly wage tax filings
- Social Insurance Administration: Contributions across health, pension, unemployment, long-term care and statutory accident insurance
- Non-Resident Payroll (NRP): Social insurance registration and wage tax exception application
- Year-End Reporting: Annual wage tax certificates and statutory contribution statements
- Works Council Interface: Payroll data handling and co-determination requirements for companies with 5+ employees
FAQs
Starting a Business in Germany: Frequently Asked Questions
Do I need a local director for a GmbH in Germany?
No, a local director is not legally required. However, some banks prefer to see local representation. GoGlobal can provide nominee director services or help you appoint someone from your team.
What's the difference between NRP and EOR in Germany?
NRP registers your company as the direct employer with German social security authorities without entity setup. Your employees work under your company name, which is better for employer branding and you avoid entity establishment costs. EOR means employees work under GoGlobal’s entity. NRP is ideal for 1–5 employees when you want direct employment without full entity commitment.
