Why set up a Ltd.??

The Limited can be established within 24 hours and is immediately capable of limited liability actions. This means that English liability protection applies even without registration in the German commercial register. A share capital of only 1.50 Euros is sufficient. There is no need to provide proof of capital contribution. Even an in-kind contribution by providing services is possible.  

By establishing a corporation, business assets can be protected, for example, by retaining vehicles or tools in the personal ownership of the entrepreneur while the purely operational business is conducted by the company.  

Many things are easier via a Ltd. because everything happens without a notary and within a few days: capital increases, changes of shareholders, the establishment of a new managing director.  
When several entrepreneurs want to join forces for specific contracts, this can be set up extremely quickly and with little effort. The business model from the island also makes it significantly easier to incorporate investors into larger companies and the merger of several small companies. A capital increase or the transfer of shares is completed at the Companies House within a few days, providing the investor with legal certainty that they are truly involved in the company.  
Investors can also be easily involved with a limited partnership contribution. Small companies often cannot raise the share capital for a GmbH. Here, the Ltd & Co KG offers an alternative. Since no loans are given based merely on the legal form, banks or leasing companies will only finance vehicles for a Ltd if, for example, they receive a personal guarantee from the owner.  

These advantages apply especially in non-European international transactions. Particularly in Asia, the GmbH is almost unknown, and the Limited is a required legal form.  

For many small and medium-sized enterprises, establishing a holding structure is also appealing. Setting up such a structure with German corporations often lacks the necessary share capital, and the founding costs are significant. With the cost-effective establishment of the Limited, such a structure can be quickly and inexpensively set up, for example, to benefit from the tax privileges of holding companies, or to outsource certain operational risks.  

Last but not least, the Ltd. & Co. KG serves as a genuine German partnership company.  

A special advantage for craftsmen is the exemption from the mandatory craftsman's insurance, as the craft is carried out in the form of a corporation.  

Of course, there are also obligations and risks in the Ltd. However, if the Ltd Director acts according to the rules of a proper businessman and complies with the annual mandatory reports in England, full personal liability protection is also maintained in times of crisis.  

Ltd-Verband (Guest)