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Guides: German law, clearly explained.

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Every guide reviewed by Dr. Georg Schröder, LL.M.

Company formation and corporate law

All 7 guides
Cover image “What is a GmbH?”: line drawing of the word GmbH on a gold background

What is a GmbH? Meaning and key features explained simply

GmbH stands for Gesellschaft mit beschränkter Haftung, a German limited liability company. It is a corporation and a legal entity in its own right, formed by one or more persons with at least €25,000 in share capital, of which at least €12,500 must be paid in before registration (Sec. 5 and 7 GmbHG). Once the GmbH is entered in the commercial register, only the company's assets are in principle liable for its debts (Sec. 13 (2) GmbHG).

11 min read
Cover image “What is a UG?”: line drawing of the word UG on a gold background

What is a UG? The UG (haftungsbeschränkt) legal form explained

The UG (haftungsbeschränkt), in full Unternehmergesellschaft (haftungsbeschränkt), is not a separate legal form but a variant of the GmbH under Sec. 5a GmbHG. It is formed with less than €25,000 share capital, arithmetically from €1, which must be paid in fully in cash before registration. In return, it must allocate a quarter of its annual net profit to a statutory reserve every year until the share capital has been increased to at least €25,000.

10 min read
Cover image “MoPeG: what has changed”: line drawing of three overlapping circles on a gold background

MoPeG: what the reform of German partnership law has changed

The MoPeG, the German Act on the Modernisation of Partnership Law, has applied to all partnerships since 1 January 2024, including existing ones. Since then, the GbR (civil law partnership) has expressly had legal capacity and can be entered in the new partnership register (eGbR). If a partner leaves, for example through death or termination, the partnership as a rule continues instead of being dissolved.

9 min read

Contracts and legal texts

All 3 guides
Cover image “Contract for work”: line drawing of a contract sheet with a tick on a light grey background

Contract for work: what it governs and how it differs from a service contract

Under a contract for work (Werkvertrag), the contractor promises a result, for example a repaired heating system, a finished website or an expert report, and the customer promises the remuneration (Sec. 631 BGB). Payment is due on acceptance, which for work on things also starts the two-year limitation period for claims for defects (Sec. 641, Sec. 634a BGB). Under a service contract, by contrast, only the activity is owed, not the result.

12 min read
Cover image “What belongs in T&Cs?”: line drawing of a section sign on a light grey background

What belongs in terms and conditions? Template, contents and typical mistakes

Terms and conditions (AGB) are not required by law. Anyone using a T&C template or writing their own needs above all these core contents: scope, conclusion of contract, prices and payment, delivery or performance, warranty and liability, information on withdrawal for consumers, and final provisions. The yardstick for every clause is Sec. 305 to 310 BGB: anything that unreasonably disadvantages the customer is invalid.

9 min read
Cover image “Legal texts for online shops”: line drawing of a shopping bag with a tick on a light grey background

What legal texts does an online shop need?

What legal texts does an online shop need? Mandatory are a legal notice (Impressum) and a privacy policy, and when selling to consumers also the cancellation policy with the model withdrawal form and the mandatory information in the ordering process. Terms and conditions are not mandatory, but customary. If texts are missing or defective, cease-and-desist letters from competitors and associations are likely.

11 min read
Portrait of Dr. Georg Schröder, LL.M.
The author

Dr. Georg Schröder, LL.M.

Dr. Georg Schröder is a lawyer and writes the guides of Recht 24/7. He explains legal questions so that you can follow them without legal training, and he reviews every guide before it is published.

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