German Subsidiary Setup
End-to-end guidance for international companies establishing a German subsidiary in the Freiburg or Baden-Württemberg region — from the choice of legal form to a fully operational, tax-registered entity.
- Local expertise — strony international focus due to our proximity to Switzerland and France
- Tax advisors, auditors and lawyers under one roof — one point of contact for the entire setup
- Personal advice and direct contact
Your Partner for German Subsidiary Setup
Are you planning to expand into Germany and establish a subsidiary?
Would you like to set up a GmbH or Kommanditgesellschaft (Partnership) efficiently — without losing track of the legal, tax and banking requirements?
Setting up a German entity touches corporate law, tax law and banking compliance at the same time. Errors in the choice of legal form, missing tax registrations or an incomplete beneficial-owner filing regularly cause delays of several weeks — and can prevent the new company from invoicing or operating. As an interdisciplinary partnership, KFK-Partner manages the entire process for you: from the initial structuring decision through notarized incorporation, commercial register entry and tax registrations to the corporate bank account and operational handover. Thanks to our location in Freiburg, close to the Swiss and French borders, we are particularly experienced with inbound investments from Switzerland, France and beyond.
You receive a single, coordinated team of tax advisors, auditors and lawyers — and a clear, transparent path to a German subsidiary that is compliant from day one.
Our Services
Legal form & group structure
We analyse your market-entry and growth goals and recommend the optimal legal form (GmbH, UG (haftungsbeschränkt), partnerships such as Kommanditgeselschaft or a holding structure). We address minimum capital (€ 25,000 for a GmbH, of which € 12,500 must be paid in), shareholder structure and the tax effects for your parent company.
Corporate bank account & capital
We coordinate the opening of the corporate bank account and the deposit of the share capital, including the KYC and beneficial-owner documentation that German banks require from foreign shareholders.
Notarized incorporation
A German GmbH must be incorporated before a notary (§ 2 GmbHG).
Commercial register & trade registration
We prepare and coordinate the entry in the commercial register (Handelsregister) — the point at which the entity legally comes into existence.
Tax registrations
We file the tax registration questionnaire (Fragebogen zur steuerlichen Erfassung) to obtain your tax number, and apply for the VAT identification number (USt-IdNr.) with the Federal Central Tax Office (BZSt.) as well as the registration for trade taxes (Gewerbeanmeldung) — so your subsidiary can invoice from the start.
Transparency register & compliance
We register the beneficial owners in the transparency register (Transparenzregister) and set up the recurring compliance obligations of a German entity, so deadlines are met from day one.
Cross-border tax issues
For Swiss, French and other foreign parent companies, we structure financing, profit repatriation and intra-group payments in a tax-efficient manner. Our services include German withholding tax matters on dividends and license payments, treaty and directive relief, and the preparation of exemption certificate applications with the Federal Central Tax Office.
We also review the relevant substance requirements under Section 50d(3) EStG and support clients in preparing robust documentation for the German tax authorities. This helps foreign shareholders and German subsidiaries reduce withholding tax exposure, avoid unnecessary tax leakage and ensure efficient cross-border cash flows.
Ongoing accounting, payroll & legal support
After handover we offer digital bookkeeping, payroll, annual financial statements and corporate legal support (managing-director appointment, employment contracts) — your single partner for the long term in Germany.
Optaining a Binding ruling (Verbindliche Auskunft)
Before implementing the structure, we can obtain a binding ruling (verbindliche Auskunft, § 89 (2) AO) for a clearly defined, not-yet-realised set of facts. Where no German tax nexus exists yet, the competent authority is generally the Federal Central Tax Office (BZSt), including its dedicated investor desk.
The ruling provides legal certainty and binds the tax office that later becomes responsible. We manage the application before implementation, assess the competent authority by tax type and coordinate the statutory fee procedure based on the tax amount at stake.
Our Process in Freiburg
Strategic foundation & decision
In a free initial consultation — in our Wilhelmstraße office or online — we analyse your goals and recommend the right legal form and structure, with a clear view of the tax consequences for your group.
Establishment & integrated tax setup
We manage the full formation: notarization via power of attorney, commercial register entry, bank account opening and all tax and compliance registrations (tax number, VAT-ID, transparency register) — without you travelling.
Handover & ongoing support
You receive an organised handover of all documents and a fully operational subsidiary — with the option of ongoing tax, accounting, payroll and legal support to secure your long-term success in Germany.
What Sets Us Apart
- Big Four background: all our tax advisors and CPAs bring Big Four experience and many years of practice.
- DATEV integration at scale: we connect larger accounting systems and ERP solutions to DATEV, taking over pre-coded (vorkontierte) data and processing it efficiently.
- Everything from one source: tax advisors, auditors and lawyers under one roof — one coordinated team handles your entire setup.
- Genuine cross-border focus: deep, hands-on experience with Swiss and French parent structures thanks to our border-region location.
- Certified Digital DATEV Firm: modern, paperless processes and secure, encrypted data exchange across borders.
- A long-term partner: we stay on board for ongoing accounting, payroll, financial statements and compliance well beyond the setup.
Our Firm in Freiburg
KFK Partner has been firmly anchored in the Freiburg business landscape for many years and supports medium-sized and family-owned companies — as well as international groups entering the German market — in their most important decisions. Our team combines the expertise of tax advisors, auditors and lawyers under one roof, which allows us to handle the legal, tax and audit dimensions of a subsidiary setup from a single source. At our office in Wilhelmstraße 20, clients benefit from short distances and personal support.
Thanks to our long-standing presence in Freiburg, we know the local economy, banks and authorities very well and use these contacts for our clients. At the same time we are internationally networked and, due to our position close to the Swiss and French borders, particularly experienced with cross-border structures. Our digital orientation lets us run the formation process efficiently — remotely where helpful — without neglecting personal advice. We see ourselves as long-term partners and remain available well beyond the day your subsidiary is registered.
Your Advantages
Setting up a German subsidiary in Freiburg benefits considerably from local expertise and regional knowledge. Freiburg’s economy — a mix of traditional SMEs, innovative technology companies and a strong university environment — combined with its cross-border location to Switzerland and France, regularly brings international aspects that must be addressed when structuring an inbound investment. Knowledge of the local banking landscape and authorities can be decisive for how quickly a new entity becomes operational.
We know how the local commercial register, tax office and banks work in practice, which lets us anticipate requirements, prepare complete filings and identify potential problems early. The result is a subsidiary that is compliant, bankable and ready to operate — with one coordinated team handling corporate law, tax and audit throughout.
The Biggest Mistakes When Investing in Germany
Starting without a stratgic pre-analysis
Risk: The wrong legal from or holding structure looks in the tax disadvantages that are expensive and awkward to unwind later.
Our safeguard: We runa a 360° structuring analysis before anything is notarized.
Founding without a German power of attorney
Risk: Management is forced to travel for notary and bank appointments; dates expire and timelines slip.
Our safeguard: A notarized, apostilled power of attorney lets us handle the entire formation on your behalf.
Registering with the tax office too late
Risk: Without a tax number and VAT-ID you cannot invoice — and German B2B e-invoicing has been mandatory since 2025.
Our safeguard: We file the tax questionnaire in parallel with incorporation and set up compliant e-invoicing.
Hiring a tax advisor without cross-border expertise
Risk: Advice that ignores treaty relief, transfer pricing or substance leads to costly corrections and reputational damage.
Our safeguard: Our international tax team — with Big Four background — handles inbound structures daily.
Forgetting the transparency register filing
Risk: Beneficial owners must be filed in the Transparenzregister; omissions and late filings carry fines.
Our safeguard: Beneficial-owner registration is a fixed, non-negotiable step in our setup process.
Ignoring withholding tax and substance on profit repatriation
Risk: Dividends to a foreign parent face 26.375% withholding tax unless treaty/directive relief and the substance requirements of § 50d(3) EStG are secured — and intercompany terms must meet § 1 AStG.
Our safeguard: We structure repatriation, design arm's length intercompany terms and document substance from day one.
FAQ
How long does the setup typically take?
The timeline depends on the legal form, the completeness of your documents and the processing times of the notary, commercial register, bank and tax office. We streamline every step to make the entity operational as quickly as possible. We will give you a realistic estimate for your specific case in an initial strategy call.
What tax registrations does the subsidiary need?
After incorporation we file the tax registration questionnaire (Fragebogen zur steuerlichen Erfassung) to obtain the tax number, apply for the VAT identification number (USt-IdNr.), and register the beneficial owners in the transparency register. Only with these in place can the subsidiary invoice and operate properly.
How are profits repatriated to my foreign parent company?
Dividends from a German subsidiary are generally subject to withholding tax (25% plus solidarity surcharge). Relief is often available under the EU Parent-Subsidiary Directive or an applicable double taxation agreement — for example with Switzerland — provided the substance requirements of Section 50d(3) EStG are met. We structure the financing and profit repatriation efficiently and ensure proper documentation.
Do you also handle accounting and compliance after setup?
Yes. We offer digital bookkeeping, payroll, annual financial statements, tax returns and corporate legal support on an ongoing basis — so you have a single, trusted partner for the long term in Germany.
How do you structure your fees?
Fees for tax advisors in Germany follow the statutory schedule (Steuerberatervergütungsverordnung) where applicable; formation projects are typically scoped transparently after an initial consultation.
You receive a clear overview of expected costs before we begin.
Can we get binding certainty on the German tax treatment before we invest?
Before you implement the structure, we can obtain a binding ruling (verbindliche Auskunft, § 89 (2) AO) on a clearly defined, not-yet-realised set of facts. As long as you have no tax nexus in Germany yet, the competent authority is not a local tax office but the Federal Central Tax Office (BZSt) and its dedicated investor desk („Investorenstelle“), under § 89 (2) sentence 3 AO.
The ruling binds the tax office that later becomes responsible, giving you legal certainty on how your German entity will be taxed. Key points we manage for you: the application must be filed before the transaction is carried out (once contracts are signed, the door closes); competence is assessed separately per tax type (income/corporate tax via the BZSt, VAT often via a local office once you are registered); and a statutory fee applies, based on the tax amount at stake.
Contact us!
Wir freuen uns auf Sie!
Kontaktieren Sie uns via Telefon, E-Mail oder das Kontaktformular.
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