Free guide · 21 pages

Setting up a GmbH from India:
8 steps, and where founders get stuck.

A practical breakdown of the statutory sequence, and the points where non-resident founders lose the most time. Below is the outline; the full guide goes through every step with document lists, realistic timelines and the FEMA/ODI decision tree.

How we know this
Statutory provisions are cited so you can check them yourself. Figures we describe as verified come from documents in our own files. Anything drawn from our own casework is marked as what we see, not presented as a general rule. Where we cannot support a claim, we leave it out rather than repeat what other guides assert. Rules, fees and bank policies change; verify the current position before you rely on anything here.

What the guide covers

  • All eight statutory steps in order, from the registered address through the notary, the bank and the capital, the commercial register, the trade office, the tax office and the transparency register, each with a document list and a realistic timeline.
  • A chapter on the FEMA / ODI decision tree for moving share capital out of India, with the routes for individuals and for corporate investors.
  • Two things rarely disclosed, with countermeasures for each.
  • A final pre-launch checklist and an authority directory with the offices you will actually deal with.
  • 24 pages. Written from formations we have handled, with the German provisions cited so you can check them.

The eight steps at a glance

The order is fixed by law. Almost all delay comes from starting in the wrong place, so it is worth reading once even if you have founded companies before.

Building the company

  1. Registered address in Germany. The articles name the Sitz, the municipality (§ 3(1) Nr. 1 GmbHG); the full German business address goes into the registration filing (§ 8(4) Nr. 1 GmbHG). In practice you need it from the start, because the notary prepares the filing at the same appointment.
  2. Articles, either the statutory Musterprotokoll or articles drafted for your case, plus the name check with the chamber.
  3. Notary appointment, booked in Germany. Every shareholder and every managing director must attend, or be represented by a power of attorney that is either notarially certified or executed at a German embassy or consulate. The law expressly contemplates the consular route: under § 8(3) GmbHG the required instruction may be given by a foreign notary or by a consular officer.
  4. Bank account and capital. Open the business account and pay the share capital in. The managing directors then declare in the filing that the money is at their free disposal (§ 8(2) GmbHG). The notary needs the bank confirmation to prepare that declaration, and the court may ask for the payment slips if it has serious doubts. Getting the confirmation back to the notary is the step people forget, and nothing moves without it.
  5. Handelsregister, the notary files with the Amtsgericht. The registration number exists only after this.

Making it operational

  1. Gewerbeanmeldung, the trade registration at the municipality.
  2. Finanzamt, the Fragebogen zur steuerlichen Erfassung, which produces the tax number.
  3. Transparenzregister, the beneficial owners. Since 2021 every GmbH has to file, there is no longer an exemption, and it is the step most often missed.

Only if they apply to you

  • USt-IdNr., the VAT identification number, if you trade within the EU.
  • EORI, the customs number, if you import or export outside the EU. Free, but allow three to four weeks.
Subsidiary or your own company? The sequence is the same, the paperwork is not.

If the shareholder is an Indian company, the German notary and the register court have to see that the parent exists and who is entitled to sign for it. That means a current extract from the Indian register, the certificate of incorporation, the constitutional documents (MoA and AoA), and a resolution of the board or the shareholders authorising the investment and appointing whoever signs. Current matters: a register extract that is several months old is regularly refused. All of it apostilled through the Ministry of External Affairs and translated by a sworn translator, and the originals travel by courier.

If you found as a private individual, none of that applies. A passport is enough.

Who can found it, and who is allowed to sign

Three answers that are more generous than founders expect, in short. The guide works through each of them with the provisions.

  • One person is enough. A GmbH may be founded by one or more persons (§ 1 GmbHG). A single shareholder can hold all the shares and be the managing director at the same time. There is no upper limit either, and several managing directors are possible.
  • The managing director need not live in Germany and needs no residence permit. The law requires a natural person with full legal capacity and no disqualifying convictions (§ 6(2) GmbHG). The residence question returns later at the tax office, which looks at where the company is actually managed from, not at the register court.
  • Prokura. Independently of ownership and management, the company can register a Prokurist who may sign what the operation of the business entails (§ 49(1) HGB). That means contracts signed here instead of couriered to India and back. The limit is tax: under § 34(1) AO the tax obligations stay with the managing directors.

Where the delays really happen

Not evenly across the eight steps. Four of them account for almost all the lost time, and they are not the ones people prepare for.

High risk

  1. Bank onboarding without a German residence permit for the managing director. Many banks will only open an account for a company that already exists in the register, which is impossible before the capital is paid in.
  2. The capital remittance from India. India issues the company number first and pays in afterwards; Germany does the reverse. The Indian bank asks for a number that cannot exist yet.
  3. The document chain, notarisation, state attestation, MEA apostille, sworn translation, and the originals travelling by courier.
  4. Finanzamt substance queries, where the office asks how and from where the company is actually managed.

Usually straightforward

  1. The notarial act itself, particularly with an English-speaking notary.
  2. Gewerbeanmeldung.
  3. Transparency register.
  4. VAT identification number.
  5. EORI, free, though it takes three to four weeks, so apply early.

Two things rarely disclosed

The guide devotes a chapter to these because they are the ones nobody mentions until they happen.

One

The substance barrier. For an internationally structured company the tax office may ask for more information where the business activity, the management arrangements or the economic circumstances are unclear, and may issue a further questionnaire on actual management. This is the tax office establishing the company's circumstances, not a special rule for foreign founders. The guide sets out the countermeasures: a tangible pipeline of signed letters of intent or draft supplier contracts, local accounting representation with power of attorney, and contracts for space, IT and logistics.

Two

The capital remittance pipeline. Moving share capital out of India runs under RBI controls. For resident individuals the LRS facility may apply, subject to the ODI framework, and the LRS limit does not by itself determine whether an overseas equity investment is permitted. For a corporate investor the Indian company typically obtains a UIN from the RBI through its AD bank. Expect the Indian bank's review to take one to three weeks after the German notarisation, because it will usually want the finalised notarial deed before releasing the wire. Confirm the route, the forms and the reporting with your AD-I bank before any funds move.

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What this guide is not

It is not legal or tax advice, and it says so on page one. In Germany advice of that kind is reserved to admitted Rechtsanwälte and Steuerberater under the RDG and the StBerG, and we keep to that line carefully.

It is also not a promise that your case will run like the standard one. The exact procedure depends on the ownership structure, where the founders are resident, the business activity and the source of funds. On the Indian side in particular, the investment and remittance structure should be checked with an Authorised Dealer bank and, where appropriate, a FEMA or ODI professional. The guide names the questions to ask rather than answering them for a case it has never seen.

Written by Christoph Schuler
Founder, Business Center Reutlingen. Fifteen years in international automotive at Daimler, two of them living in Bengaluru.

Published 29 August 2026

Business Center Reutlingen provides administrative and organisational support and introduces you to licensed professionals. We do not give legal or tax advice, in Germany only admitted lawyers (Rechtsanwälte) and tax advisors (Steuerberater) may do so.

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