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Status of Limited Companies in Germany

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In its "Centros" decision, the European Court of Justice (ECJ) ruled that the German judicial practice up to that point violated the European-guaranteed freedom of establishment. Subsequently, the German Federal Court of Justice (BG) confirmed this on 03/13/03. An English Limited company is thus fully legal and capable of doing business in Germany. An entrepreneur has the same right to open a branch in Germany as, for example, a Munich GmbH can open a branch in Hamburg. This also means, in particular, that personal private liability is completely excluded with a Limited.

Note: The content of this article has been partially outdated due to changes in the legal situation. Please also consider our more recent posts about the impact of Brexit