GmbH share capital and the bank account: the order of steps
A GmbH needs €25,000 of share capital, and at least half must be paid in before the company is registered. That puts the bank account in the middle of the formation process.
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Google suggests "germany company registration number", "check" and "fee" after "Germany company registration". For founders, the step that slows formation down is usually the share capital account.
The steps
- Draft and notarise the articles of association.
- Open an account for the company in formation and pay in the capital.
- The managing directors confirm the payment in the register application, filed by the notary.
- The commercial register enters the company.
- Register with the tax office, the transparency register and, if needed, for a VAT ID.
The capital rule
| Form | Minimum capital | Paid before registration |
|---|---|---|
| GmbH | €25,000 | At least €12,500 in cash, and a quarter of each share |
| UG (haftungsbeschränkt) | €1 | All of it |
Why the bank comes early
Only once the capital is paid can the directors truthfully confirm it to the register. A bank that is slow to open the formation account delays the whole company. Founders living abroad should start the account application as soon as the articles are notarised.
After registration
The GmbH can spend the capital on business purposes. It now needs a working account setup: SEPA for local payments and the tax office, and whatever it needs for clients and suppliers outside the euro area.
Paying into Germany: the local rail
| What | Detail |
|---|---|
| Local rail | SEPA Instant Credit Transfer |
| Run by | European Payments Council scheme, run by each bank |
| Settlement | Under ten seconds, 24/7 |
| Published fee | By the EU Instant Payments Regulation, no more than the bank charges for a standard SEPA transfer |
Source: European Payments Council: SEPA Instant Credit Transfer. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
Rivet opens accounts for registered companies, so it fits after the GmbH is entered in the register, not for the formation account. Then it gives the company EUR and GBP details on Growth and USD on every plan, with payouts to 120+ countries. Check our eligibility list for German companies. Rivet is not a bank; regulated partner institutions hold the funds. See German business bank accounts for non-residents.
Questions people ask
How much capital do I need to start a GmbH?
€25,000 of share capital. For cash contributions, at least €12,500 in total, and at least a quarter of each share, must be paid before the application to the register.
Where is the capital paid in?
Into a bank account opened for the company in formation (GmbH i.G.). The bank confirms receipt, which the directors use for the register application.
Can I use the capital after registration?
Yes. Once paid in and registered, the capital is the company's money and can be spent on business purposes.
What is a UG?
An Unternehmergesellschaft, a GmbH variant with capital from €1. It must set aside a quarter of annual profit until its capital reaches €25,000.
Sources
Alexia compares the accounts, cards and payment tools companies weigh before they switch, and writes Rivet's market guides for founders in a specific country. Prices in Alexia's comparisons come from each provider's own pricing page on the date given in the article, rules come from the regulator or tax authority that sets them, and every source is listed at the end.
More from Alexia M. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- germany company registration
- gmbh share capital
- stammkapital
- ug
- handelsregister
- notary
