The EU Mobility Package has made it increasingly difficult for Polish road carriers to transport goods in other European Union countries. Many carriers are forced to reduce their operations due to the inability to meet the new rules on cabotage and cross-trade.

Many companies decide to transfer part of their operations to Germany due to the possibility of obtaining unlimited access to transport services on this market. Business activity in Germany can be conducted in the form of a sole proprietorship, general partnership, limited partnership, limited liability company and other forms. The company we recommend the most is a limited liability company – Gesellschaft mit beschränkter Haftung – GmbH.

The establishment of a company takes place by concluding a articles of association, and if it is a company established by one partner, by means of a founding act. They should always be in the form of a notarial deed. From August 2022, it is also possible to establish a GmbH via the Internet. A limited liability company (GmbH) is established as a result of entry in the commercial register and is a capital company whose partners’ liability is limited. It has legal personality and EUR 25,000 must be contributed to the share capital to be established. Registration takes place at the district registry court in whose district the company has its registered office. It is also important to have a title to the seat, e.g. a lease agreement. It is obligatory to appoint a management board consisting of at least one member.

Please note that employees of a company registered in Germany will be subject to German employment law, their salary will be subject to contributions and tax according to German social security rules. The income of the GmbH is subject to 15% CIT. In addition, you have to pay a solidarity surcharge – 0.825%. Dividend taxation is 25%.

It is assumed that the cost of establishing a company is up to 1000 Euro, including i.a. court fees and notary fees. In addition, any remuneration for lawyers coordinating the establishment of the company should be added.

Establishing a company is not the end of formalities. As in Poland, you need to obtain a transport license for domestic or international transport. An application for this type of permit can be submitted to local government offices and these licenses are issued there. The license is granted for a period of 10 years and entitles you to carry goods within Germany without being restricted by the Mobility Package.

Establishing a business in Germany is recommended to transport companies that perform the majority of transport in Germany on behalf of German forwarders and their customers in this country, e.g. wholesalers, production plants, distributors, etc. This will allow unlimited access to the market. performing transports on behalf of German freight forwarders.

BTLA LEGAL, as part of the GERMAN DESK team, offers legal advice on setting up a business in Germany and coordinates the incorporation of companies.