More founders, consultants and established SMEs are now asking a practical question: how do you actually register and run a German entity while still based in Australia? The interest spans tech founders testing product-market fit, e-commerce sellers chasing EU customers, solo consultants, and Australian companies formalising an EU presence.
This guide walks through eligibility, structure choice, registration steps, tax obligations and realistic costs, so you know what's involved before you commit capital or time.
Key Takeaways
- Australians can own 100% of a German GmbH or UG with no local director residency requirement
- GmbH (€25,000 capital) and UG (from €1) suit most foreign founders, depending on credibility needs
- Registration requires notarisation, trade office sign-up and Handelsregister entry
- The Germany-Australia tax treaty caps dividend withholding at 5-15%, avoiding double taxation
- Managing the business locally requires a residence permit; remote incorporation via a representative does not
What Australian Entrepreneurs Must Know Before Starting
Germany's process is bureaucracy-heavy but predictable. Once you understand the sequence, it's a checklist exercise rather than a guessing game.
Visa and Residency Considerations
As non-EU citizens, Australians need a self-employment residence permit (Aufenthaltserlaubnis) to live in Germany and actively run a business there. This isn't optional if you plan to manage operations on the ground.
That said, incorporation itself doesn't require relocation. German company law treats shareholder nationality and residence as irrelevant, meaning you can form a GmbH or UG remotely through a local notary and representative without a visa in hand.
The residence permit application, when you do need it, generally requires:
- A detailed business plan showing commercial viability
- Evidence of secured financing (capital or loan commitment)
- Proof the venture benefits the German economy or meets regional demand
- Adequate pension provision if you're over 45
Australia-Side Considerations
Setting up in Germany doesn't switch off your Australian obligations. The ATO still expects disclosure of foreign business interests. Australia's controlled foreign company (CFC) rules can also attribute a German entity's income back to you as an Australian resident, depending on ownership and control.
The Germany-Australia Double Taxation Agreement, in force since 2016, is the mechanism that stops you paying tax twice on the same profit. Under the treaty, German withholding tax on dividends is capped at 5% where an Australian company directly holds at least 10% of voting power for the required period, or 15% in other cases. Those caps only apply if the holding structure and paperwork are set up correctly.
Two Operating Models
Most founders choose one of two paths:
| Model | How it works | Best for |
|---|---|---|
| Remote Setup | Incorporate via notary and local representative; operate from Australia | Testing the market, e-commerce, consultants with EU clients |
| Relocate & Operate | Move to Germany under a self-employment permit; manage day-to-day | Founders needing hands-on presence, hiring locally |
In practice, most Australian founders start remote. If revenue and demand justify it, they relocate later, once the business case is proven rather than theoretical.
Why Germany Makes Strategic Sense for Australian Businesses
Germany isn't just a large market on paper. World Bank data puts Germany's 2025 GDP at roughly USD 5.05 trillion, ranking among the world's top three economies. That scale, paired with EU membership, changes what a single registration can unlock.
Key advantages for Australian businesses:
- Single market access through the EU One Stop Shop VAT scheme — one registration for cross-border B2C sales instead of filing in each EU country
- Manufacturing and automotive strength, aligning with Australian export sectors already familiar with these supply chains
- Central location bordering nine countries, useful for distribution across the continent rather than serving Germany alone
- Skilled labour via Germany's dual vocational education system, which produces technically trained staff at scale
- Innovation infrastructure, with a 11th-place WIPO Global Innovation Index 2025 ranking and Forschungszulage R&D tax incentives available even without profits
None of this guarantees success. It does mean the operating environment rewards businesses that plan for scale rather than a single-market play.
Business Structures Available to Australian Entrepreneurs
Structure choice shapes your liability exposure, capital outlay and how German partners and banks perceive you. Getting this wrong early is expensive to unwind.
GmbH (Recommended for Most Founders)
The GmbH is Germany's standard limited liability company. It requires €25,000 minimum share capital, with at least €12,500 payable at registration. One shareholder is sufficient, and there's no nationality restriction on ownership or on the managing director (Geschäftsführer) role.
The GmbH only becomes a legal entity once entered into the Commercial Register, not before. Until then, limited liability doesn't exist.
UG (Mini-GmbH)
The UG (haftungsbeschränkt) lowers the entry barrier, starting from as little as €1 in capital. It's popular with bootstrapped startups for that reason alone. Two trade-offs come with it:
- No in-kind contributions are allowed at formation, only cash
- 25% of annual profit must go to statutory reserves until the UG can convert to a full GmbH
Many founders treat the UG as a stepping stone, not a permanent structure.
Not every Australian entrant needs a GmbH or UG. If you already operate from Australia, a branch or sole registration can create a German footprint with less formation overhead.
Branch Office and Sole Proprietorship
- Branch office: Liability stays with the Australian parent—there is no separate German legal entity. Fits firms that want a German presence without a new subsidiary.
- Sole proprietorship / freelancer: Works for solo consultants with minimal formalities. Non-EU founders should confirm residence-permit implications before relying on this route.
How to Register a Business in Germany from Australia — Step by Step
Registration blends online submissions with mandatory notarisation and, in most cases, at least some in-person steps. Preparing documents in advance saves weeks.
Step 1 – Choose Structure, Reserve a Name, and Draft the Business Plan
Select your entity type, check name availability with the local Chamber of Commerce (IHK), and write a detailed business plan. This plan does double duty: it's your operational roadmap and a required document for any residence permit application later.
Step 2 – Notarise Documents and Open a German Bank Account
GmbH and UG founding documents (Articles of Association) must be notarised by a German notary. German law requires notarisation for formation. Once that is done, deposit the share capital into a German business bank account before registration can proceed.
A one-person GmbH example from IHK Stuttgart is a useful benchmark (not a fixed quote), plus VAT and expenses:
- €125 — drafting and notarising the articles
- €62.50 — register application
- €25 — structured-data transmission
Step 3 – Register with the Trade Office and Commercial Register
Notify the local Gewerbeamt before starting commercial operations to get your trade licence (Gewerbeschein). Fees are municipality-specific: Berlin charges around €26 for an individual trade, while Stuttgart's example lists about €60.
For GmbH/UG structures, entry into the Handelsregister (Commercial Register) is mandatory. This step is what makes the company a separate legal entity, distinct from you personally.
Step 4 – Register for Tax via ELSTER
After trade registration, submit the Fragebogen zur steuerlichen Erfassung through Germany's ELSTER portal. This gets you a Steuernummer (tax number) and, where applicable, a VAT number. Standard VAT sits at 19%, with a reduced 7% rate for specified goods.
Step 5 – Secure Visa/Residency and Necessary Licences
If you plan to manage operations locally rather than remotely, apply for the self-employment residence permit at this stage. Also check whether your industry needs sector-specific licensing. Some activities in Germany require more than a standard trade registration.
Costs and Ongoing Compliance
Initial setup costs typically include:
- Notary and Commercial Register fees (roughly €470–€730 for a €25,000 cash GmbH, depending on the notarial route)
- Trade office registration fee (municipality-dependent, often €25-€60)
- GmbH minimum capital of €25,000 (€12,500 payable upfront), or from €1 for a UG Ongoing compliance adds up over the year:
- Compulsory IHK chamber membership fees (Frankfurt tiers from around €180 for lower-earning companies)
- Bookkeeping and annual financial statements under German accounting law (HGB)
- Mandatory insurances, including statutory accident insurance within about a week of starting
- Monthly or quarterly VAT filings, plus annual corporate income tax, solidarity surcharge and municipal trade tax Coordinating German registration with Australian ATO reporting gets complicated quickly. VJM Global handles that dual-jurisdiction work end to end. The firm provides entity formation, tax compliance, accounting and payroll for both markets—German VAT pre-returns, corporate tax and Bundesanzeiger filings alongside Australian GST and BAS reporting. One advisory relationship keeps both sides aligned and lowers the risk of a compliance gap between jurisdictions.
Frequently Asked Questions
How much money is required for a business visa in Germany?
There's no fixed statutory minimum. You need to show sufficient financing for living costs and business viability, backed by a credible business plan and financing evidence.
What are the requirements for a foreigner to start a business in Germany?
You need a business plan, proof of financing, and the standard company registration steps. Non-EU citizens who plan to manage the business locally also need a residence permit.
Is it easy for an Australian to move to Germany?
Australians need a visa or residence permit as non-EU citizens, so the move is not automatic. With proper preparation and a solid business case, the process is manageable.
What is the best business to start in Germany?
Consulting, engineering, e-commerce and manufacturing-adjacent services tend to suit Australian founders, given existing trade strengths and Germany's industrial base.
Is it cheaper to live in Germany or Australia?
Australia generally runs higher on everyday expenses and notably higher on rent. Check current cost-of-living indices before you relocate, as figures shift over time.
Who pays 42% tax in Germany?
Germany's progressive income tax reaches 42% once taxable income crosses roughly €69,879 (2026 bands). That rate applies to individuals, not as a flat corporate rate.
