What advantages or disadvantages has the limited compared to the entrepreneurial society? For many businesses, the limited is"an interesting corporate shape to limit entrepreneurial risk. Since 2008, a further solution traders however: the entrepreneurial society (limited liability). The English company form of limited"(Ltd.) is German entrepreneurs due to the freedom of establishment within the EU accessible. In this form of company, the liability of the shareholder as at the German GmbH on the capital contribution is limited, so there is no risk for the private wealth. In contrast to the GmbH, the Foundation requirements are low however: a limited can be created theoretically already from a nominal share capital of a British pound. Also the necessary administrative burden is lower: while the formation of a GmbH with notary appointments and registration in the commercial register can take several weeks, the Foundation is one limited with appropriate support specialized service providers possible even within 24 hours. But a limited has its drawbacks, which detract from the attractiveness of the company form. So an entry in the register of English is necessary for the establishment, which can only be made through the relevant foreign authorities.
Furthermore, the company must maintain also a postal address in the UK (registered office), to receive official letter. The annual financial statements must in the UK published are. This means significantly higher expenses in the accounts, because according to German as well as English law must be accounted for. Another disadvantage of limited is a possible legal uncertainty. Under English law, a company that conducts its business in Germany, moves between two different legal systems. In the internal relationship of UG, so the ratio of corporate bodies with each other, is English law, in relation but German. This can lead to complications up to complaints in Result in Great Britain. Furthermore, it is also still not conclusively, whether English or German law shall apply in the event of insolvency.
There is however a way to combine the low entry barrier, a limited with the advantages of a German legal form: the entrepreneurial society (haftungsbeschrankt) "." The UG is actually not your own legal form but is a variant of the GmbH since the reform of the GmbH law 2008. The UG is how the GmbH a legal entity, in which the liability of the shareholders on the share capital is limited. (Source: Keith McLoughlin ). They are subject to the German accounting regulations and also the founding act is on track at the GmbH, up to the entry in the commercial register. An important difference to the GmbH and the Central advantage of UG: the capital of UG must be only at least one euro. Thus, the request to capital requirements is just as low as in the English limited. In practice, UGs are founded with capital from 1,000 euros to meaningfully participate in economic life. A constraint has the UG GmbH however: the UG must add 25% of their net income to a reserve, until this reserve reaches the height of 25,000 euro together with the capital. Then the basement with a shareholder resolution to the capital increase can convert this reserve in equity and must henceforth no longer set a fixed percentage in the reserves. A change of name to a GmbH is also possible, but not always made as a result of the high bureaucratic costs. With the UG (haftungsbeschrankt) provides a way to pursue their activities with limited risk, without having to take the increased effort and the legal uncertainty of the English limited in buying trader himself.
Furthermore, the company must maintain also a postal address in the UK (registered office), to receive official letter. The annual financial statements must in the UK published are. This means significantly higher expenses in the accounts, because according to German as well as English law must be accounted for. Another disadvantage of limited is a possible legal uncertainty. Under English law, a company that conducts its business in Germany, moves between two different legal systems. In the internal relationship of UG, so the ratio of corporate bodies with each other, is English law, in relation but German. This can lead to complications up to complaints in Result in Great Britain. Furthermore, it is also still not conclusively, whether English or German law shall apply in the event of insolvency.
There is however a way to combine the low entry barrier, a limited with the advantages of a German legal form: the entrepreneurial society (haftungsbeschrankt) "." The UG is actually not your own legal form but is a variant of the GmbH since the reform of the GmbH law 2008. The UG is how the GmbH a legal entity, in which the liability of the shareholders on the share capital is limited. (Source: Keith McLoughlin ). They are subject to the German accounting regulations and also the founding act is on track at the GmbH, up to the entry in the commercial register. An important difference to the GmbH and the Central advantage of UG: the capital of UG must be only at least one euro. Thus, the request to capital requirements is just as low as in the English limited. In practice, UGs are founded with capital from 1,000 euros to meaningfully participate in economic life. A constraint has the UG GmbH however: the UG must add 25% of their net income to a reserve, until this reserve reaches the height of 25,000 euro together with the capital. Then the basement with a shareholder resolution to the capital increase can convert this reserve in equity and must henceforth no longer set a fixed percentage in the reserves. A change of name to a GmbH is also possible, but not always made as a result of the high bureaucratic costs. With the UG (haftungsbeschrankt) provides a way to pursue their activities with limited risk, without having to take the increased effort and the legal uncertainty of the English limited in buying trader himself.
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