Status of Limited Companies in Germany

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.

In its "Centros" decision, the European Court of Justice (ECJ) ruled that the German legal practice up to that point violated the European guaranteed freedom of establishment. Subsequently, the German Federal Court of Justice (BGH) confirmed this on March 13, 2003. An English Limited company is thus fully legally and commercially capable in Germany. Therefore, 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 particularly means that with a Limited, personal private liability is completely excluded.