Germany business bank account for a GmbH, UG or foreign branch

The capital account before Handelsregister registration

Germany business bank account describes a euro Geschäftskonto opened in the name of a GmbH, a UG, a partnership or the branch of a foreign company. It is often opened during incorporation so that it can receive the required share capital: at least half of the 25,000 euro minimum for a GmbH must be paid in before entry in the commercial register.

For a business bank account in Germany held by a GmbH, at least half of the 25,000 euro minimum capital must be paid in before entry in the commercial register. The bank therefore opens an account for the company in formation on presentation of the notarised articles and the managing director’s appointment.

UG haftungsbeschränkt: starting with one euro of capital

The UG is a GmbH variant that can be set up with nominal capital but must retain a quarter of its profits until it reaches 25,000 euros. Banks accept it while looking closely at its funding and business model.

Incorporation by notarial video call since 2022

Since August 2022 a GmbH can be formed online through a video call with a German notary, which helps foreign founders. The bank account itself still follows each institution’s identification rules, online or in a branch.

Branch of a foreign company: the Zweigniederlassung

A foreign company can register a branch in the Handelsregister instead of setting up a subsidiary. The bank then asks for the foreign register extract, translated and apostilled where needed, the decision to open the branch and the identity of the permanent representative in Germany.

Transparenzregister: reporting beneficial owners

Every German company with a company account in Germany must enter its beneficial owners, in principle those holding more than 25% of capital or voting rights, in the Transparenzregister. The bank compares that entry with its own findings and reports any discrepancy.

Gewerbeanmeldung, tax number and USt-IdNr

The business is registered with the trade office, which informs the Finanzamt. The tax office issues a tax number and, on request, the EU VAT identification number from the BZSt, which is essential for invoicing clients in other member states.

Corporate banking and international cash management

For subsidiaries of foreign groups, Deutsche Bank offers multi-currency accounts, cash pooling and trade finance. Opening requires a full KYC review of the parent company and its ownership chain up to the individuals.

Collections, SEPA and business-to-business direct debits

Companies collect through SEPA transfers, SEPA direct debits including the business-to-business scheme, and card terminals accepting girocard and international cards. Factoring is common in German industry to finance long customer payment terms.

Corporate tax, trade tax and dividend withholding

A GmbH pays 15% corporate income tax plus the solidarity surcharge and municipal Gewerbesteuer, about 30% in total. Dividends paid abroad bear 26.375% withholding, reducible under tax treaties and the EU Parent-Subsidiary Directive.

GoBD bookkeeping and record retention

The GoBD principles require traceable digital bookkeeping and retention of books and vouchers for up to ten years. The bank may ask for the annual accounts published in the company register when it periodically reviews the file.

How to open a Germany business bank account, step by step

Opening a Germany business bank account generally follows the creation of the company. The articles are drawn up before a notary, the managing director is appointed, and an account is then opened for the company in formation so that the required capital can be paid in. The bank issues a confirmation of payment, which the notary attaches to the application for entry in the Handelsregister. Once the company is registered, this account becomes the current business account.

In parallel, the business is registered with the competent office, which informs the Finanzamt, which in turn issues the tax number and, on request, the EU VAT number. The beneficial owners must also be entered in the Transparenzregister. The bank compares this information with the papers supplied and often requires every director and signatory to be identified, online or at a branch, according to its own rules.

For subsidiaries of foreign groups, allow a longer review: the institution checks the parent company and its ownership chain down to the individuals. In practice, timelines vary according to the bank, the complexity of the structure and the quality of the documents, and no opening is guaranteed in advance. Ask for the complete list of expected papers at your very first contact.

Documents to prepare for a business bank account in Germany

For a German company, prepare the notarised articles, the Handelsregister extract or, before registration, proof that incorporation is under way, the appointment of the managing director and the identity documents of every director and signatory. Add proof of the business address and, where available, the Transparenzregister entry. Perfect consistency between these documents avoids successive requests for clarification. These papers are the foundation of the file.

For a branch or subsidiary of a foreign group, you also need the foreign register extract, translated and apostilled where necessary, the decision to open the branch and the identity of the permanent representative in Germany. Attach a full ownership chart down to the individuals, because the bank examines the whole ownership chain before accepting the relationship, as it does for any international group.

Finally, prepare a simple description of the activity: products or services, customers, suppliers, countries from which flows come and expected volumes. For a UG, explain the funding and the business model, because banks look closely at companies with nominal capital. A business plan or customer contracts strengthen the credibility of the file, although they do not guarantee acceptance. This helps the German business account move forward smoothly.

Common mistakes with a company account in Germany

The first mistake is to postpone opening the capital account when registration depends on it. For a GmbH, at least half of the minimum capital must be paid in before entry, and the notary waits for proof of payment. Contact the bank as soon as the articles are being drafted so that the incorporation timetable is not delayed by the account opening.

The second mistake concerns foreign documents. A register extract that is untranslated, not apostilled or out of date forces you to start again, and founders lose weeks. Check with the bank which translations and legalisations it accepts, and make sure the Transparenzregister, the ownership chart and the declarations supplied are consistent, because the bank reports any discrepancy it notices. Every lost month delays the company account in Germany.

The third mistake is to neglect the accounting set-up. The GoBD principles require traceable digital bookkeeping and the retention of vouchers for up to ten years, and the bank may ask for the published annual accounts during a periodic review of the file. A company that keeps its books properly, answers requests for papers quickly and documents its flows goes through these checks more calmly.

Questions to ask the bank and checks to make before choosing

Before choosing, ask the bank about what matters for your business: multi-currency accounts, SEPA transfers and direct debits, including the business-to-business scheme, terminals accepting girocard and international cards, online banking with several approval levels and cash management services for a group. Ask for the tariff schedule in writing and compare it with your real volumes rather than with theoretical examples.

Also ask how the bank treats companies owned by foreign shareholders, which documents it requires for the ownership chain and what review period it announces in practice. A bank used to international founders will answer more clearly. Note the name of your contact and have the list of confirmed documents in writing so that you can follow the file without misunderstandings.

Finally, raise tax transparency in general terms. Banks collect information on the tax residence of the company and its owners under the CRS automatic exchange and the FATCA law. Check your obligations with the Finanzamt and the Handelsregister, then have your situation validated by a German notary or tax adviser before taking a final decision. Do not hurry, because a careful file saves time later.