Are you looking to acquire a German UG (Unternehmergesellschaft) with an existing business license, but planning to change its business activity? This article provides an overview of the process and benefits of buying a UG in Germany with the intention of altering its business operations.
Understanding German UG
A UG is a type of German limited liability company that requires a minimum capital of €1. It is an attractive option for entrepreneurs due to its flexibility and limited liability protection. A UG can be used for various business activities, making it a versatile vehicle for starting or expanding a business in Germany.
Benefits of Buying an Existing UG
- Established Entity: An existing UG is already registered in the German Commercial Register, which can simplify the process of starting a business in Germany.
- Bank Account Opening: It can be easier to open a corporate bank account with an existing UG, as the bank can review the company’s history and existing financials.
- Credibility: An existing UG may be viewed as more credible by potential customers and partners compared to a newly formed company.
Changing the Business Activity of a UG
To change the business activity of a UG, the shareholders must pass a resolution to amend the company’s Articles of Association. The new business activity must be specified in the amended Articles. The change must then be registered with the Commercial Register.
The process involves:
- Drafting the amended Articles of Association.
- Notarization of the shareholders’ resolution.
- Filing the necessary documents with the Commercial Register.
- Payment of the registration fee.
Considerations for Buying a UG with a Change of Business Activity
When acquiring a UG with the intention of changing its business activity, it’s crucial to:
- Conduct Due Diligence: Review the UG’s existing liabilities, contracts, and financial situation.
- Understand the Costs: Consider the costs associated with buying the UG, changing its business activity, and registering the changes.
- Seek Professional Advice: Consult with lawyers and tax advisors to ensure a smooth transition.
Acquiring a German UG and changing its business activity can be a viable option for entrepreneurs looking to establish or expand their business in Germany. However, it requires careful planning and execution to ensure compliance with German laws and regulations.
This article provides a comprehensive overview of the process and benefits of acquiring a German UG with the intention of changing its business activity, which is very helpful for entrepreneurs looking to start or expand their business in Germany.