With the UG (haftungsbeschränkt), the legislator has created an attractive and comparatively inexpensive alternative to the GmbH for founders. Theoretically, one euro is enough as a contribution, but you should still think carefully about how much share capital you need to have available for company formation.
The company formation of a UG (haftungsbeschränkt) is particularly interesting for new entrepreneurs on a tight budget. You can easily set up a UG online, using the model articles of association and €5,000 share capital, the fees for the notary are relatively low at €190 for one shareholder and €260 for two or three shareholders. A further €152 is incurred for the costs of the registry court. In addition, unlike a GmbH, you do not have to raise share capital of €25,000 from the outset. Theoretically, you can set up a UG (haftungsbeschränkt) with just one euro of share capital - hence the name "1-Euro-GmbH". However, what sounds tempting is almost impossible to implement in practice.
Ensure solvency
Too little share capital can quickly lead to major problems. For example, if a company only has one euro of share capital at company formation, only one euro is available to settle the first liabilities. In mathematical terms, the company would therefore already be insolvent if it bought a pack of printer paper. And this can also have legal consequences for the managing director, who would have to initiate insolvency proceedings in this case. It is therefore strongly recommended that the share capital is selected in line with the anticipated needs of the company.
How much share capital makes sense?
Notaries generally require a share capital of at least 500 euros. How high the share capital should really be cannot be generalized and depends heavily on the type of company. If you have to make expensive advance payments from the very first order, you also need correspondingly high company assets. Less capital-intensive sectors can calculate a little more tightly in terms of the capital contribution.
In any case, possible start-up difficulties and cyclical fluctuations should be considered, and buffers for unforeseen events should also be planned for.
Conclusion: If the share capital is too low, the company runs the risk of slipping into insolvency at a very early stage.
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Found a UGincluding advice on your company formation
