Hello Hans,
Good day. I am planning to have my house roof redone, I have already received several offers from roofing companies. Now to my question, what does the UG haftungsbeschränkt behind the company name mean?????
This form of founding is often chosen by start-ups or new entrepreneurs and is initially nothing bad.
Since 01.11.2008, the law for the modernization of GmbH law and to combat abuses (MoMiG) has been in force. Since that time, it has been possible for founders to establish an Unternehmergesellschaft, called Mini-GmbH. The Unternehmergesellschaft (Mini GmbH) represents a subform of the traditional GmbH. The most significant difference lies in the amount of share capital. While the Unternehmergesellschaft GmbH requires a share capital of 25,000 euros, the Mini GmbH - Unternehmergesellschaft only requires 1 euro - hence the designation 1 euro GmbH.
If the share capital is fully paid in, the Mini GmbH can be entered in the commercial register. The managing director of the Unternehmergesellschaft must certify the payment of the share capital at the time of registration in the commercial register. This new Unternehmergesellschaft can be founded with capital as low as 1 euro but must accept certain restrictions such as:
[*]A provision of 25% of the annual profits must be set aside until the 25,000 share capital is reached. Afterwards, the Unternehmergesellschaft can be continued as a regular GmbH.
[*]The admissibility of contribution in kind and the possibility of half contributions have been abolished. The share capital must be paid in full in cash before the company is registered.
Liability of the Unternehmergesellschaft
The Unternehmergesellschaft - Mini GmbH - represents a separate legal entity and can therefore be sued independently. This creates a strict separation between the private person of the founder and the new Unternehmergesellschaft. As a rule, the founder does not personally liable for the liabilities of the Unternehmergesellschaft if he has properly fulfilled his obligations. If the Unternehmergesellschaft cannot pay its liabilities, insolvency must be filed. A recourse to the private assets of the founder is excluded as long as one has complied with the duties as shareholder and managing director of an Unternehmergesellschaft.
Kind regards