Trustee Company Lawyer in Germany

The Advantages of the Trustee Company in Germany

Although the concept of trusts is not formally recognised in German law, options such as creating a trustee company are available. This company is established to act similarly to a trustee and therefore will not engage in commercial activity. The directors and shareholders of the trustee company will make the decisions for the trust. It is advisable to create a separate company with the sole purpose of acting as a trustee. This ensures that there are no disputes between the goals of a previously established company and the goals of the trustors. Although this means of creating a trust is more expensive, as a GmbH company is generally established, and there is a degree of maintenance involved with keeping the company active, there are also several advantages to this type of arrangement.

Firstly, the trustee company will have limited liability as a limited company. Should any legal dispute arise, the company will be treated as a distinct legal person rather than involve the individuals involved. Assets outside of the trust arrangement will not be targeted in such conflicts. Similarly, should the individual designing the trust face a legal battle, the assets within the trustee company cannot be reached during that legal conflict.

Secondly, there will be a clear separation between the assets within the trust and the private holdings of the individual, which are not part of the trust. This clear distinction can be crucial in avoiding future inheritance disputes from arising.

Thirdly, wealth management and inheritance matters are made more straightforward. The trust’s beneficiary can be transferred into the position of manager of the company at the appropriate time.

The additional security provided by the trustee company arrangement makes it an attractive option to be pursued. Our German business lawyers will support you in establishing the company and with its inherent legal requirements.

Our Services in the Establishment of Companies in Germany

Should the decision be made to incorporate a trustee company in Germany, our corporate lawyers will oversee all of the legal requirements in establishing the company. Our lawyers have advised entrepreneurs worldwide on the necessities for founding a GmbH and provided comprehensive guidance throughout the process. There are no limits regarding nationality or residence in setting up a GmbH in Germany. Even if you are based abroad, our legal team can do the heavy lifting with establishing the company.

Our team will support you in the drafting of the articles of association, which outlines the following information: the business name, the goal of the company, its registered office, share capital, the identity of the shareholders and the respective shares held. At least one shareholder is required as one-person GmbHs are possible under German law. Following the drafting of the articles of association, our team will then oversee their notarization. After these crucial steps, our lawyers will cover the legal formalities, such as registering the company with the required bodies such as the trade office and the commercial registry. The GmbH in Germany requires a start-up share capital of €25,000, while the nominal value must be €1. Before registration, at least 25% of the cash contribution and the total non-cash contribution (where applicable) must be paid.

During the establishment of the trustee company, it is vital to inform the tax authorities about the actual economic owner’s identity for legal compliance reasons. To the rest of the business world, the trustees can remain as the face of the company.

Once the trustee company is established, we will remain your legal partner in Germany. Our lawyers will keep you informed of any legal and tax developments in Germany and ensure that your company is legally compliant. By allowing our lawyers to oversee the legal requirements, you can be reassured that your company is in good hands.