German Charitable Entrepreneurial Company

The charitable entrepreneurial company is attractive for small charitable projects in Germany

In addition to the charitable LLC (gGmbH) and the charitable stock corporation (gAG), which are suitable for larger projects in Germany, the charitable entrepreneurial company (gemeinnützige Unternehmergesellschaft, gUG) has become increasingly important in recent years. It is particularly suitable for small enterprises and can be set up with a share capital of just EUR 1. The charitable entrepreneurial company is therefore often referred to as a "Mini-gGmbH" or "1-Euro-gGmbH". This means that the charitable UG does not have to raise the LLC's usual share capital of EUR 25,000 immediately. Instead, the charitable UG can accumulate the amount over the years.

However, actual 1 euro start-ups are rarely sustainable in practice. A certain minimum initial capital is necessary to prevent the charitable UG from falling into a state of insolvency immediately after its establishment.

Legal and tax advice for charitable UGs

We are happy to provide you with comprehensive support in setting up your charitable entrepreneurial company, e.g. by

  • drafting legally secure articles of incorporation
  • negotiations with the tax authorities on the tax-exempt status of your charitable UG
  • coordinating the incorporation with a notary public and
  • coordinating the registration of the company with the commercial register.

We also provide you with all required legal services (employment law, data protection law, corporate law, etc.) as well as comprehensive advice on (nonprofit) tax law, including bookkeeping and the necessary annual financial statement procedures.


Founding a charitable UG in Germany at a fixed price

In order to support you in setting up a German charitable entrepreneurial company, we prepared three different packages. We offer all of the following services in English or German.

Basic | EUR 4,995

  • 15-minute short initial call to clarify the facts and discuss our cooperation (if it turns out that chosen package is not suitable: rebooking to other package possible)
  • 1 hour telephone consultation for detailed discussion of the facts and circumstances as well as your wishes and goals
  • If Orientation Plus Package was booked in advance: Discussion of the statement and its results
  • Detailed guide for establishing the German corporation: i.e. description of the specific steps necessary for the establishment of the German charitable UG 
  • Drafting of bilingual (German/English) articles of association for the company to be founded based on the client's specifications, including 2 work loops (further work loops on an hourly rate basis or after upgrading to Founder Package or All inclusive Package)
  • Telephone conference to discuss the outcome (guideline/articles of association) and the next steps to be taken (max. 2 hours)
     
  • Fixed price: EUR 4,995 plus expenses and VAT

Founder | EUR 9,995

Includes all services of the Basic Package, as well as:

  • Assistance in the complete establishment of the company. This includes the following services:
  1. Making adjustments to the draft of the articles of association, if necessary (2 work loops incl. 2 telephone conferences of 1 hour; further work loops based on hourly rates)
  2. Request for a preliminary review of the final draft of the articles of association by the German tax authorities for the purpose of recognizing the UG as a tax-exempt organization (2 work loops; further work loops based on hourly rates)
  3. Providing the articles of association to the client's notary for notarizing;
  4. Preparation of a letter of attorney so that the managing director does not have to be present on site at the notary appointment
  5. Representation of the shareholder before the notary by a WINHELLER employee
  • After founding of the entity, request of determination letter (so called “determination of compliance with statute-related preconditions”) from the tax authorities according to Section 60a German Fiscal Code 
  • 1 hour final consultation by phone
     
  • Fixed price: EUR 9,995 plus expenses and VAT
  • Upgrade from Basic Package: EUR 6,995 plus expenses and VAT
    (Prices do not include notary fees, registration fees and translation fees)

All inclusive | EUR 16,995

Includes all services of the Basic Package and the Founder Package, as well as

  • Tax registration, opening balance sheet
  • Setting up nonprofit accounting plus 10% discount on nonprofit accounting in the first year and 5% in the second year after establishment
  • Setting up payroll accounting plus 10% discount on payroll accounting in the first and 5% in the second year after establishment
  • Managing director service contract (2 work loops) 
  • Business address (PO box) with postal service at our office for the first 12 months
  • Annual status consultation for the first 2 years
  • Discounts on the available add-ons (see below)
     
  • Fixed price: EUR 16,995 plus expenses and VAT 
  • Upgrade from Basic Package: EUR 13,995 plus expenses and VAT 
  • Upgrade from Founder Package: EUR 9,995 plus expenses and VAT
    (Prices do not include notary fees, registration fees and translation costs)

Add-ons

  • Recruiting by WINHELLER (at the price of 3 monthly salaries)
    Benefit from the years of experience of our HR team! We help you find the right personnel for your organization. 
  • Legal and tax advisory services at an hourly rate
    We are happy to offer you any additional legal or tax services at a fair rate, e.g. assistance in setting up a German bank account.
  • Business address with us (EUR 250 plus VAT per month)
    Register your Business address (PO box) with postal service at our office in Frankfurt/Main.

Contact us at +49 69 76 75 77 80 or info@winheller.com!


No package fits your needs? Your case is so individual that we cannot provide optimal coverage with our package offers? We are as individual and flexible as you need us to be: Of course, you are more than welcome to book us at our usual hourly rates right from the start in order to book individual services. Just get in touch with us!


Incorporation of your charitable entrepreneurial company for a fixed price

If you have decided to set up a charitable UG in Germany, we will take care of the entire incorporation process. We offer the setting up of your charitable UG at a reasonable all-inclusive price and will determine the exact amount during an initial consultation with you, in which we can get familiar with your charitable project.

Your attorney for German charitable UGs

Are you interested in incorporating a charitable UG? Our attorneys specializing in the law relating to charitable entrepreneurial companies are Attorney Uwe Müller and Attorney and Certified Foundation Consultant Alexander Vielwerth. The easiest way to contact us is by e-mail (info@winheller.com) or by telephone (+49 (0)69 / 76 75 77 80). We look forward to hearing from you.

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Juve AwardLegal 500 Germany 2019
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