The 5 types of German companies are?

1. German GMBH: A GmbH-Private limited liability company may be incorporated in Germany by at least one investor with a minimum share capital of EUR 25,000. The capital of the company can be presented in cash or in kind (in this case, the value of the assets must be specifically stated in the articles of association). One issue to consider is that the shares of GMBH Germany cannot be transferred to the public or registered on the stock market. The General Meeting of Shareholders is the meeting that ensures the management of GMBH. Day-to-day corporate decisions are decided by the company's directors, who are appointed by the AGM.

2. German AG: This applies to large companies as there is a possibility to increase the initial capital by registering shares on the stock market. The German AG requires a share capital of not less than 50,000 Euros. As in the case of an AG, members are only liable for the amount of their capital contribution. Management is ensured by a management board, which is regularly checked by a supervisory board consisting of at least three members. For this type of business, the accounts must be evaluated by a statutory auditor.

3. German limited partnership: consists of two types of partners: silent partners who must contribute to the capital of the entity and have limited liability to the extent of that contribution, and general partners who do not necessarily contribute to the capital of the entity but have unlimited liability for the debts of the entity as well as for who can claim profits. The general partner is the partner with decision-making power in a German limited partnership, whereas the silent partner cannot participate in any management decisions.

4. Sole proprietorship: If the entity faces bankruptcy, it is not protected in any way.

5. Branching out: Branching out is also a popular method of entering the German market, and many foreign investors choose branching out as the first step in their business development. A branch is not a legal entity, which is why the assets and liabilities of its branch belong to the parent company.