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What is the cost of a limited liability company?

09/12/2023 | By: FDS

The costs of setting up and running a limited liability company (GmbH) can vary depending on the country, legislation and individual conditions. Here are some of the typical cost items that may be incurred in the formation and operation of a limited liability company:

Formation costs:

Notary fees:

The formation of a GmbH requires the notarization of the articles of association by a notary public. The costs for this service can vary depending on the country and the capital of the GmbH. Registration costs:

The GmbH must be registered in the commercial register, which may involve fees.

Stock capital:

A GmbH requires a minimum share capital, which may vary depending on the country. In Germany, for example, the minimum share capital is 25,000 euros.

Advisory fees:

It may be advisable to seek legal and tax advice to ensure that the GmbH is properly formed and managed. These consulting costs vary depending on the service provider. Office expenses:

Rent for business premises, office equipment, ongoing operating costs, etc.

Personnel costs:

Salaries and social security contributions for employees, if applicable.

Taxes and duties:

The limited liability company is subject to various taxes such as corporate income tax, business tax and sales tax, depending on its activities and income.

Bookkeeping and accounting costs:

Costs for bookkeeping, financial statements and possibly the services of a tax advisor. Insurances:

Depending on the type of business, various insurances may be necessary, e.g. liability insurance, business interruption insurance, etc.

Other costs:

Marketing and advertising, royalties, patent costs (if applicable), and other operating expenses. It is important to note that the exact costs will depend on several factors, including the country in which the limited liability company is incorporated, the specific industry in which it operates, the number of employees, and the individual business situation. It is recommended to seek professional advice to obtain accurate information on the costs of establishing and operating a limited liability company in your region.

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