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Remote Incorporation

Incorporating a GmbH remotely is possible. It is not simple.

Foreign founders assume the hard part is the decision. It isn't.

7 minUpdated April 16, 2025

The German GmbH has a reputation for paperwork, and it earns it. But the paperwork is manageable. What catches foreign founders and companies off guard is something different: a series of procedural requirements that are unfamiliar, non-negotiable, and impossible to shortcut. Each one is a potential delay. None of them is obvious until you are already inside the process.

The good news is that none of them requires you to be in Germany. The less good news is that "remote" means something specific here, and it demands preparation that most guides do not mention.

The notary reads the deed. Out loud. In German.

German law requires that articles of association for a GmbH be notarised. This is widely known. What is less widely understood is what notarisation actually involves: the notary reads the entire incorporation deed aloud to the parties present. This is not a formality that can be waived or accelerated. It is a legal requirement, and it takes as long as it takes.

A foreign shareholder who cannot attend in person — which is most of them — can send a representative under a power of attorney. This is standard and entirely acceptable. What is not acceptable is a power of attorney that has been signed at home, witnessed by a colleague, and emailed over as a PDF. The PoA must itself be notarised and apostilled in the country where it is signed. For a US company, that means a notary public and a state-level apostille. For a UK company, it means a solicitor notary and a Foreign, Commonwealth and Development Office apostille. For many other jurisdictions, it means discovering that the local notarisation process takes two to three weeks and costs more than expected.

The appointment cannot be scheduled until the PoA is in hand. The incorporation cannot proceed until the appointment has taken place. This single requirement, overlooked by those who assume they can sort the paperwork afterwards, is responsible for more delayed timelines than any other step.

The shareholder must prove it exists — and who speaks for it

If the shareholder is a company rather than an individual — the common case when a foreign business is setting up a German subsidiary — it must prove two distinct things to the German notary's satisfaction: that it exists as a legal entity, and that the person signing the power of attorney was authorised to do so.

These are separate documentary requirements, and both must be met.

Existence is established through official corporate documents, notarised and apostilled. A US corporation, for example, will typically provide its deed of incorporation with a state-level apostille. A Delaware company obtains this from the Delaware Division of Corporations; the apostille is then added by the relevant state authority. The document confirms the company is duly incorporated and in good standing.

Authority is a separate matter. The person who signed the PoA on behalf of the shareholder must prove they had the power to do so. This is typically established through a notarised and apostilled certificate from the relevant company secretary, confirming the signatory's authority and their position within the company at the time of signing. It is not enough to assert authority in the PoA itself; the authority must be independently evidenced.

Some German notaries can streamline this step. Under section 21 of the Federal Notary Code (BNotO), a notary may certify to the commercial register that the existence and due representation of a foreign shareholder have been established to their satisfaction, substituting their professional confirmation for the full document chain. Whether this is available depends on the individual notary and the jurisdiction of the foreign shareholder. It is worth asking about early.

One further practical point that is consistently underestimated: all documents may need to be submitted as original physical copies in Germany. Scanned PDFs and digital apostilles are often insufficient. Where translation is required, bilingual versions — with the German text treated as authoritative — are strongly preferred over translated-only documents. Preparing documents in this format from the outset avoids the need to redo them later.

The bank account is not an administrative formality

Once the articles of association have been notarised, the GmbH exists as a legal entity. It cannot be registered, however, until its share capital has been paid in. The share capital cannot be paid in until the GmbH has a bank account. The bank account requires passing a KYC process that German banks apply with considerable rigour to newly incorporated entities with foreign shareholders.

This is the step that surprises clients most in its duration. Established German banks often decline non-resident applications outright. The fintech alternatives — Penta, Qonto, Deutsche WirtschaftsBank and others — have broadened access, but KYC for a foreign-owned GmbH still involves document submission, beneficial ownership declarations, and waiting periods that can run to several weeks. One bank's internal escalation process, requiring additional documentation about the shareholder's source of funds, can add material time to a timeline that was already running.

The Handelsregister registration, the step that makes the GmbH fully operative and limits its shareholders' liability, cannot happen until the share capital is confirmed as received. Everything waits on the bank.

The managing directors must appear in person. Somewhere.

This is the requirement that generates the most disbelief. Every person appointed as managing director of the new GmbH must personally sign a declaration confirming that they are not subject to any legal disqualification from holding the role. This declaration cannot be signed by a representative. There is no power of attorney workaround. The managing director must sign it themselves, in front of a notary, and the signature must be notarised and apostilled.

There is one significant piece of flexibility: the signing does not have to happen in Germany. A managing director based in New York can attend a notary public in New York. One based in London can attend a notary solicitor in London. The resulting document is apostilled locally and submitted to the German notary handling the registration. What cannot be altered is the timing: the declaration must be signed on or after the date on which the incorporation deed was notarised. A declaration signed in anticipation is invalid and must be redone.

For a GmbH with two managing directors based in different countries, this means coordinating two separate notary appointments in two jurisdictions, both timed to follow the German notary appointment, both requiring apostilles that arrive before the Handelsregister submission can be made. The logistics are not intractable. They are also not something most founders have encountered before.

What a realistic timeline looks like

A well-prepared remote incorporation — documents gathered in advance, PoA notarised and apostilled with authority properly evidenced, bank application submitted immediately after the notary appointment, managing directors briefed on their personal signing obligation — can be completed in one to two weeks from the notary appointment. A poorly prepared one, where each of these steps is discovered in sequence rather than anticipated in parallel, can take months.

The difference is almost entirely a function of knowing what is coming. The German incorporation process is not designed to obstruct foreign founders. It is designed around assumptions about domestic shareholders and locally present directors that simply do not hold for most international clients. Understanding that gap in advance is the preparation that matters.

To understand costs and realistic timelines once you've confirmed the procedural requirements, review Part D: Costs and Timeline.

If you are considering incorporating a GmbH from abroad, we offer a fixed-fee remote incorporation service designed for exactly this situation.

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