"Mini GmbH" (Limited Liability Entrepreneurial Company)

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The Mini-GmbH (Unternehmergesellschaft UG, haftungsbeschränkt) is not a separate legal form of company, but a GmbH which has a minimum capital of less than EUR 25,000 and where cash subscription is required. This means that it is possible to set up a company with limited liability in Germany with capital of only EUR 1.00.

In order to compensate the initial absence of capital the company has to retain a quarter of its annual profit until it has accumulated the minimum shareholder capital of an ordinary GmbH (which is EUR 25,000). The accumulated capital can then be converted into share capital and the Mini-GmbH altered into a standard GmbH.

For uncomplicated standardized formation of a Mini-GmbH model articles are provided. These articles must still be notarized, but for a reduced fee. Thus, establishment costs for a Mini GmbH are reduced to a total of around EUR 300.

Except for the abovementioned specific provisions the Mini-GmbH - by terms of law - is generally subject to the same duties and rights as the standard GmbH.



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Mr. Sherif Kotb
Head of Investment and Legal Consulting
 (+202) 3333 8477
 (+202) 3336 8786
sherif.kotb [at] ahk-mena.com

Correspondence: English/Arabic