Introduction
The decision to start a business is an important step on the road to self-employment. Many factors play a role in choosing the right legal form. In Germany in particular, founders have the options of an entrepreneurial company (UG) and a limited liability company (GmbH).
The UG is often seen as an entry-level variant to the GmbH, as it can be founded with a lower share capital. This makes it particularly attractive for founders with limited financial resources. On the other hand, due to its higher minimum capital and established reputation, the GmbH offers a solid basis for companies that want to build a professional structure right from the start.
In this article, we will carry out a detailed comparison between the UG and the GmbH to find out which legal form is better suited to the individual needs of founders. We will examine the advantages and disadvantages of each legal form and use case studies to illustrate in which situations a UG or a GmbH might be the better choice. We will also look at how the Niederrhein Business Center can support founders in setting up a UG or GmbH.
Overview of the article
This article explains in detail the advantages and disadvantages of establishing a UG (limited liability) compared to a GmbH. First, an introduction to the two company forms is given, followed by a detailed analysis of the specific characteristics, advantages and disadvantages of each form. A special focus is on the capital requirements, credibility, flexibility in company management as well as the risk and liability of both legal forms.
Furthermore, case studies are used to illustrate which form - UG or GmbH - is most suitable in various scenarios. The needs of start-ups, established companies, freelancers and small businesses are taken into account. Finally, it is explained how the Niederrhein Business Center supports founders in setting up a UG or GmbH and what advantages their modular packages offer.
The decision between a UG and a GmbH should always be made individually, based on the specific requirements and goals of the company. This article provides a comprehensive overview of the most important aspects that should be considered when making this decision.
What is a UG?
The Unternehmergesellschaft (UG) is a legal form for companies in Germany that is often seen as an alternative to the GmbH. The UG was introduced in 2008 to make it easier for founders with little start-up capital to enter into entrepreneurship. A key feature of the UG is the limitation of liability, similar to the GmbH.
In contrast to a GmbH, a UG can be founded with a lower share capital. The minimum share capital is only a symbolic amount of one euro. This makes the establishment of a UG particularly attractive for start-ups and small companies with limited financial resources.
The UG basically functions like a GmbH: It is a legal entity, is only liable with the company assets and thus offers protection for the private assets of the shareholders. The designation “entrepreneurial company (limited liability)” must always be included in the company name.
However, there are also some disadvantages to choosing a UG as a legal form. For example, part of the profit must be set aside in reserves until the share capital is increased and conversion to a regular GmbH is possible. In addition, the name “Unternehmergesellschaft” may be perceived by some business partners as less reputable than a “real” GmbH.
Overall, however, the UG offers a good opportunity for founders to become self-employed with manageable risk and to build up their company for the long term.
Definition and characteristics of a UG
An Unternehmergesellschaft (UG) is a legal form for companies in Germany that is often seen as an alternative to the GmbH. The UG was introduced in 2008 and allows founders to start with a smaller share capital. The minimum amount for founding a UG is 1 euro.
The characteristics of a UG are similar to those of a GmbH, but there are some important differences. A UG must have the addition “limited liability” in its company name to make it clear that liability is limited to the company’s assets. The share capital of the UG is divided into shares, similar to a GmbH.
A UG can appear on the market and do business like a GmbH. It must prepare balance sheets and be registered in the commercial register. The establishment of a UG requires a notarized partnership agreement and the payment of the share capital into a blocked account.
Despite the lower entry barrier, the UG offers its founders the advantage of limited liability and a reputable company image. It is important to note that the conversion of a UG into a GmbH is possible as soon as sufficient capital has been saved.
Advantages of founding a UG
Establishing an entrepreneurial company (UG) offers various advantages for founders. One of the main advantages is the low minimum investment required to establish a UG. Compared to a GmbH, a UG only requires a fraction of the share capital, which makes it easier to start your own business.
Another advantage of founding a UG is the limitation of liability. Similar to a GmbH, the shareholders of a UG are only liable for their investment and their private assets remain protected. This offers security and minimizes personal risk in the event of financial difficulties or insolvency.
The flexibility in management is another advantage of the UG. Compared to the GmbH, there are fewer formal requirements for management and administration, which reduces administrative effort and allows more entrepreneurial freedom.
In addition, a UG can serve as a precursor to conversion to a GmbH. As the company grows and more capital becomes available, the UG can be converted to a GmbH to benefit from the advantages of a full-fledged limited liability company.
Overall, the establishment of a UG offers founders with limited capital and willingness to take risks an attractive opportunity to start their own company and grow it gradually.
Disadvantages of founding a UG
Establishing an Unternehmergesellschaft (UG) offers many advantages, but there are also some disadvantages that founders should consider. One of the main disadvantages is the image and credibility associated with a UG. Compared to a GmbH, a UG can be seen as less reputable because it is often associated with a lower share capital.
Another disadvantage of founding a UG is the stricter legal requirements compared to a GmbH. A UG must contribute at least 25% of its profits to the legal reserve each year until the minimum share capital for conversion to a GmbH is reached. This can lead to financial restrictions and affect the flexibility of the company.
Furthermore, a UG can involve higher liability risks. Since the share capital is lower than in a GmbH, founders are personally more liable and their private assets could be at risk in the event of debts or insolvency.
In addition, the term “entrepreneurial company (limited liability)” itself can be perceived as negative, as it indicates limited liability and could possibly raise doubts about the financial stability of the company.
Despite these disadvantages, many founders consciously decide to set up a UG because of the lower capital requirements and the possibility of converting to a GmbH later. It is important to carefully weigh up all the advantages and disadvantages and to take into account individual needs and the long-term goals of the company.
What is a GmbH?
The GmbH, short for limited liability company, is one of the most popular legal forms for companies in Germany. It is characterized by its limited liability, which means that the partners are only liable up to the amount of their contributions. This offers the shareholders a certain level of protection for their private assets.
To establish a GmbH, at least one shareholder and a share capital of 25.000 euros are required. The share capital is divided into shares held by the shareholders. The GmbH is managed by managing directors, who can either be shareholders or external persons.
A GmbH has its own legal personality and can therefore enter into contracts, own property and sue or be sued in court. This makes it a separate legal entity, independent of its shareholders.
The establishment of a GmbH requires a notarized partnership agreement and registration in the commercial register. The GmbH must regularly prepare and publish balance sheets and pay taxes.
The advantages of a GmbH include the limited liability of the shareholders, the professional image towards customers and business partners as well as the possibility of long-term planning and security of the company's existence.
However, founding a GmbH also entails certain costs, both during the establishment and during ongoing operations. It is also subject to certain legal requirements and regulations.
Flexibility in management is another advantage of a GmbH. The organizational structure can be customized to meet the needs of the company. This makes it possible to make decisions efficiently and run the company in an agile manner.
Overall, the GmbH as a legal form offers many advantages for entrepreneurs, especially when it comes to liability issues and a professional image towards customers and partners. Through careful planning and implementation, a GmbH can provide a solid foundation for long-term business success.
Definition and characteristics of a GmbH
A GmbH (limited liability company) is a legal form for companies that is popular in many countries. The GmbH is characterized by its limited liability, which means that the shareholders are only liable up to the amount of their contributions. This offers the shareholders a certain degree of protection for their private assets.
The establishment of a GmbH requires a minimum capital, which in Germany is 25.000 euros. This capital is divided into shares held by the shareholders. A GmbH must have one or more managing directors who represent and manage the company.
The GmbH has its own legal personality, which means that it can enter into contracts and appear in court independently. This enables the GmbH to act independently of its shareholders and to enter into long-term business relationships.
The obligation to keep accounts and to disclose annual financial statements are further characteristics of a GmbH. These transparency regulations serve to disclose the company's financial situation and strengthen the trust of customers and business partners.
Overall, the GmbH as a legal form offers many advantages such as limited liability, clear organizational structure and credibility on the market. This makes it a popular choice for companies of different sizes.
Advantages of establishing a GmbH
Establishing a GmbH offers entrepreneurs a number of advantages. One of the main advantages is the limitation of liability, which protects the personal assets of the shareholders. In the event of debts or insolvency, the company is only liable with the company assets, not with the private assets of the shareholders.
In addition, the GmbH legal form gives the company a professional image and increases trust among customers, suppliers and business partners. The designation “GmbH” signals stability and seriousness, which can have a positive effect on business.
Another advantage is the flexibility in company management. In a GmbH, different company shares can be allocated to investors or employees, which makes it easier to raise capital and retain employees in the long term.
The GmbH structure also enables a clear internal organization with managing directors and shareholders, which can lead to more efficient decision-making processes. In addition, the GmbH offers a certain degree of anonymity, since not all shareholders have to be publicly known.
Overall, the formation of a GmbH offers numerous advantages in terms of liability protection, image building, flexibility and internal organization. This makes it an attractive legal form for many entrepreneurs.
Disadvantages of founding a GmbH
Establishing a GmbH offers many advantages, but there are also some disadvantages that entrepreneurs should consider. One of the main disadvantages is the higher bureaucratic effort compared to other types of company. Establishing a GmbH requires the creation of a partnership agreement, notarization and registration in the commercial register, which costs time and money.
Another disadvantage is the required share capital of at least 25.000 euros when founding a GmbH. This capital must actually be paid in, which can represent a financial hurdle for many founders. In addition, a GmbH is subject to double-entry bookkeeping, which means additional administrative effort.
The limited liability, which is an advantage of the GmbH, can also prove to be a disadvantage. Banks and suppliers often require personal guarantees from the shareholders to cover the risk. This can lead to personal assets being at risk.
Another disadvantage is the high costs for tax advice and annual financial statements for a GmbH compared to other types of company. Regular audits by a tax advisor and the preparation of annual financial statements mean additional expenses for the company.
Despite these disadvantages, many entrepreneurs still decide to set up a GmbH because of the advantages such as limited liability and image building. It is important to carefully consider all aspects and seek professional advice in order to make the right decision.
Comparison between UG and GmbH: Advantages and disadvantages in detail
When deciding between establishing a UG (limited liability) and a GmbH, entrepreneurs must consider a variety of factors in order to choose the legal form that is most suitable for their company. Both the UG and the GmbH have specific advantages and disadvantages that need to be analyzed.
A key aspect in this comparison is the capital requirement. While a minimum share capital of just one euro is required to establish a UG, a GmbH requires a share capital of at least 25.000 euros. This makes the UG particularly attractive for founders with limited financial resources, as they can start with lower initial investments.
In terms of credibility and image, the GmbH often has an advantage over the UG. The GmbH is often seen as more reputable in the business world, which can have a positive effect on the trust of customers, suppliers and investors. This can play a role, especially in international business relationships.
Flexibility in company management is another point that founders should consider. The UG offers more scope for entrepreneurial decisions and adjustments, as it is subject to less strict legal requirements than a GmbH. This enables founders to react more quickly to changes in the market.
On the other hand, with a UG, the risk in terms of liability is the main concern. Since the share capital is lower than with a GmbH, the shareholders are personally liable with their private assets up to the amount of the share capital. With a GmbH, on the other hand, liability is usually limited to the company assets, which increases the personal protection of the shareholders.
Other aspects such as tax treatment, administrative effort and long-term planning should also be taken into account in the decision-making process. Ultimately, the choice between a UG and a GmbH depends on the individual needs of the company as well as the long-term goals and risk appetite of the founders.
It is therefore advisable to seek comprehensive advice from experts before founding a company in order to examine all relevant aspects and make well-founded decisions. Both a UG and a GmbH offer opportunities and challenges - ultimately it depends on which legal form best suits the individual situation of the company.
Capital requirements when setting up a company
The capital requirement when starting a company is a crucial aspect that presents founders with important financial decisions. When choosing between a UG (limited liability) and a GmbH, the financial requirements play a central role.
The UG, with a minimum share capital of just 1 euro, offers a low entry barrier for founders. These low capital requirements make it particularly attractive for start-ups and small companies with limited financial resources. The UG enables founders to set up a company inexpensively and quickly become active on the market.
In contrast, establishing a GmbH requires a minimum capital of 25.000 euros. This higher capital requirement can be challenging for many founders, as it means that more financial resources must be provided up front. However, the GmbH offers the advantage of an established legal form with a higher reputation and trust among business partners.
It is important to note that capital requirements include not only the registered capital, but also ongoing operating costs and potential investments must be taken into account. Sound financial planning is essential to ensure that the business has sufficient funds to successfully grow and achieve long-term success.
The choice between a UG and a GmbH should therefore be well thought out and based on individual financing needs and long-term company goals. A precise analysis of capital requirements and a clear financial strategy are crucial for a successful start to self-employment. It is advisable to seek professional advice in order to make well-founded decisions regarding capital requirements when setting up a company.
In addition, founders should consider alternative financing options such as loans, grants or investors to cover their capital needs and build their company successfully. A solid financial basis is an essential building block for the long-term success of a company.
Credibility and image
The credibility and image of a company play a crucial role in the business world. It is particularly important to consider these aspects carefully when founding a UG (limited liability) or GmbH.
A GmbH is often considered more prestigious than a UG. This is mainly due to the higher share capital requirement for establishing a GmbH compared to a UG. A higher share capital can encourage potential investors and business partners to have more confidence in the company's financial stability.
On the other hand, a UG can offer flexibility as it can be founded with a lower starting capital. This can be attractive for founders who do not have sufficient financial resources to form a GmbH but still want to start a business.
However, it is important to note that the image of a company does not only depend on the legal form chosen. Other factors such as the quality of products or services, the marketing concept and customer service also play an important role in how the public perceives it.
Ultimately, the decision between a UG and a GmbH should not be based solely on the aspect of credibility. It is advisable to carefully weigh up all the pros and cons and choose the legal form that best suits the individual needs of the company.
A professional appearance and a strong brand can contribute to the success of a company, regardless of the legal form chosen. Communication with customers, suppliers and partners should be transparent and trustworthy in order to have a positive impact on the image.
In addition, certifications, awards or partnerships can help to strengthen a company's reputation. A clear positioning in the market and a consistent image in all areas of the company also contribute to credibility.
Overall, it is important to continuously work on improving the company's image and credibility. By presenting a professional image to the outside world, companies can build trust and create long-term relationships with their stakeholders.
Flexibility in corporate management
Flexibility in management is a critical success factor for companies in a constantly changing business world. Flexible leadership enables organizations to adapt quickly to new market conditions, develop innovative solutions and deal effectively with challenges.
One of the key strengths of flexible management is the agility of the company. Flexibility enables companies to respond quickly to changes and take advantage of new opportunities. This can help to gain competitive advantages and ensure sustainable competitiveness.
In addition, flexibility promotes efficiency in the company. By making processes flexible, resources can be used optimally. Efficient use of resources not only helps to save costs, but also increases the productivity and performance of the company.
A flexible management culture creates space for innovation and creativity. Employees are encouraged to contribute new ideas and develop innovative solutions. This often leads to new products, services or business models that move the company forward.
Furthermore, flexibility helps to minimize risks. The ability to adapt quickly means companies are better prepared for unforeseen events or crisis situations. Flexible management makes it possible to take action quickly and keep the company on track.
Overall, flexibility in corporate management is a key to the long-term success of organizations. It enables companies to adapt to market challenges, drive innovation and ensure sustainable competitiveness.
Flexibility also means being open to change and being willing to rethink traditional ways of thinking and try new approaches. This adaptability can help companies remain successful even in turbulent times.
Another aspect of flexibility in company management is promoting a positive work culture. When employees see that their managers are open to change and actively support it, they feel motivated and committed. This not only increases job satisfaction, but also employee loyalty to the company.
In addition, flexible leadership enables the development of strong relationships both internally and externally. Internally, it promotes teamwork and communication at all levels of the company. Externally, flexible leadership can help to establish or expand partnerships with other organizations and strengthen customer relationships.
In a time of constant change, flexibility in corporate management is essential for the long-term success of a company. By being able to act flexibly and adapt, organizations remain competitive and are able to make the best possible use of opportunities and successfully manage risks.
Risk and liability
The decision between a UG (limited liability) and a GmbH is closely linked to the aspects of risk and liability. When founding a UG, the shareholders are generally only liable for their investment, which represents a clear limitation of personal liability. This offers founders a certain level of security and protects their private assets from the company's debts. However, in certain cases, piercing the corporate veil of liability can occur if gross negligence or unlawful acts can be proven.
In contrast, the GmbH also offers limited liability, whereby the shareholders are only liable up to the amount of their contributions. Personal liability is therefore limited, which represents protection of private assets. Nevertheless, managing directors must be careful not to act with gross negligence, as they can otherwise be held personally liable.
Another important aspect is the risk involved in business operations. With both the UG and the GmbH, there is an entrepreneurial risk that the company could fail or that financial difficulties could arise. In such cases, limited liability can protect private assets, but entrepreneurs must still weigh up the economic risks and take appropriate measures.
Before starting a company, it is advisable to find out in detail about the legal framework and possible risks and liability issues. Professional advice from experts can help to assess the individual situation and choose the right legal form according to your own risk profile. Ultimately, a sound understanding of risk and liability is crucial for the long-term success of a company.
Case study: The choice between UG and GmbH in different scenarios
The choice between a UG (limited liability) and a GmbH depends largely on the individual circumstances. This can be illustrated in a case study:
A young start-up company that has developed an innovative app is faced with the decision of which legal form to choose. Due to limited financial resources and the desire to be present on the market quickly, the founder decides to set up a UG. With just 1 euro in share capital, he can have the company officially registered and start selling immediately.
On the other hand, there is an established family business in the construction industry. The long-standing managing director is planning to hand over the business to the next generation and wants to limit liability. For reasons of credibility and stability, he chooses the GmbH as the legal form. The higher capital contribution and the reputable image fit well with the tradition and size of the company.
A freelance graphic designer who has previously worked as a sole proprietor is now considering whether she should expand her business. Since she wants to remain flexible and does not want to take any major financial risks, she decides to set up a UG. The ease of setting up and lower costs make this legal form attractive for self-employed people like her.
In each scenario, it is important to consider the specific requirements, goals and risk appetite. Both the UG and the GmbH offer advantages and disadvantages, which can be weighted differently depending on the situation. A thorough analysis and, if necessary, professional advice are crucial for making an informed choice between the two legal forms.
Scenario for start-ups
Start-ups often face the challenge of choosing the right legal form for their company. When deciding between a UG (limited liability) and a GmbH, various factors must be taken into account. In the scenario for start-ups, aspects such as capital requirements, credibility, flexibility and liability play an important role.
The UG offers start-ups the advantage that it can be founded with a lower share capital. This enables young entrepreneurs to start a company with comparatively little equity. This is often a decisive factor, especially in the initial phase, as many founders do not have a lot of financial resources.
On the other hand, the GmbH can have a more professional and serious impression on potential investors or business partners. The higher minimum deposit when founding a GmbH signals stability and reliability, which can be an advantage, especially in the B2B sector.
In terms of flexibility, the UG offers young entrepreneurs more leeway in the design of their partnership agreements. This enables start-ups to make individual arrangements and react more quickly to changes in the market. A GmbH, on the other hand, is subject to stricter legal requirements and regulations.
Another important aspect is liability: In a UG, the shareholders are only liable for their capital contribution, whereas in a GmbH, liability is limited. This can be a decisive criterion for start-ups, especially in high-risk industries or with innovative business models.
Overall, start-ups should carefully consider which legal form best suits their individual needs. The choice between UG and GmbH depends heavily on the company's long-term goals, capital requirements, image, and desired flexibility and liability regulations.
Scenario for established companies
An established company that has been successfully operating on the market for some time faces different challenges and decisions than a start-up or a small business owner. When choosing between founding a UG (limited liability company) and a GmbH, established companies have to consider various factors.
One of the main aspects for established companies is long-term planning and strategic orientation. A GmbH generally offers greater credibility and seriousness towards business partners, customers and investors. This can be particularly important for companies that have already entered into partnerships with larger companies or operate internationally.
Another important point is liability: while with a UG (limited liability) personal liability is limited to the share capital, a GmbH offers the advantage of limited liability. For established companies that may take greater financial risks or enter into long-term contracts, this can be a decisive factor.
Flexibility in company management also plays a role. A GmbH usually has a clearly defined organizational structure with managing directors and shareholders. This can be an advantage for established companies that prefer clear hierarchies and responsibilities.
Overall, established companies should carefully consider their individual needs, long-term goals and legal requirements when choosing between a UG and a GmbH. Advice from experts such as the Businesscenter Niederrhein can help make the right decision and ensure the start-up process runs smoothly.
It is advisable for established businesses to also consider tax aspects and the impact on existing contracts and employees. Changing from one legal structure to another can have certain tax consequences, so it is important to seek professional advice on this.
In addition, the long-term development of the company should be taken into account. If the goal is to grow strongly in the future or to pursue international expansion, a GmbH could be more suitable due to its structure.
Ultimately, the choice between UG and GmbH for established companies depends on various individual factors. It is therefore always advisable to seek comprehensive advice and to thoroughly examine all relevant aspects in order to make the best decision for your own company.
Scenario for freelancers and small business owners
Freelancers and small business owners are often faced with the challenge of choosing the right legal form for their company. When deciding between a UG (limited liability) and a GmbH, they have to consider various factors that are specifically tailored to their situation.
One scenario in which a UG might be attractive to freelancers and small business owners is when start-up capital is limited. Since the UG can be founded with a lower share capital than a GmbH, it is well suited to entrepreneurs who do not have large financial resources. This allows freelancers and small business owners to start a business at comparatively low costs and still limit liability to the company assets.
The UG also offers advantages for freelancers and small business owners in terms of flexibility in management. Fewer formal requirements for shareholders' meetings and management decisions mean that these entrepreneurs can act more quickly and respond to changes. This is particularly important in industries with dynamic market conditions or fast innovation cycles.
However, freelancers and small business owners should also consider the disadvantages of a UG. The legally required accumulation of profits until the minimum share capital is reached can mean restrictions on the distribution of profits. In addition, the image of a UG could be perceived as less established by certain business partners or customers compared to a GmbH.
Overall, freelancers and small business owners should carefully consider which legal form best suits their individual needs. Advice from experts such as the Businesscenter Niederrhein can help to weigh up all the advantages and disadvantages and make an informed decision.
How the Business Center Niederrhein supports the establishment of a UG or GmbH
The Niederrhein Business Center offers comprehensive support for founders who want to set up a UG or GmbH. With their modular packages, they relieve the founders of a large part of the bureaucratic burden and ensure quick registration and business registration. These services enable the founders to concentrate on building their business and looking after their customers.
The Business Center's modular packages include all the steps required to establish a UG or GmbH. From the creation of the necessary documents to registration with the commercial register and business registration, the Niederrhein Business Center supports its customers at every step of the process.
Thanks to professional advice and support, founders can be sure that their company will be founded smoothly and that all legal requirements will be met. The Niederrhein Business Center ensures that the founding of a UG or GmbH is as simple and efficient as possible so that the founders can concentrate on their core business.
Modular packages for the start-up
When founding a UG (limited liability) or GmbH, it is important to minimize the bureaucratic effort and make the process as smooth as possible. Modular packages for founding a company offer an efficient solution to relieve founders of most of the paperwork and support them with registration and business registration.
The modular packages are tailored to the needs of founders and offer different service packages depending on the requirements of the company. These packages can include services such as the preparation of the articles of association, registration with the commercial register, application for the tax number and much more.
A major advantage of modular packages is the time they save for founders. Instead of having to fight their way through the jungle of forms and bureaucratic procedures, they can concentrate on their core business while experts take care of the founding process.
Additionally, modular packages often also offer consulting services to ensure that founders meet all legal requirements and do not miss any important steps. This can help avoid mistakes and ensure a smooth start to the company.
Overall, modular start-up packages are a practical and time-saving solution for aspiring entrepreneurs who value a professional and efficient setup of their business.
Benefits of support from the Niederrhein Business Center
The Niederrhein Business Center offers a variety of advantages for entrepreneurs and founders. With the support of the business center, you can concentrate on your core business while the team takes care of administrative tasks.
A big advantage is the professional business address that the business center provides. This address protects your privacy and gives your company a reputable image. In addition, the business center offers services such as mail acceptance, telephone service and support with setting up a company.
The modular packages for setting up a UG or GmbH are particularly helpful as they take most of the bureaucratic work out of the way. This enables quick registration and business registration so that you can concentrate on building your business.
The business center's customer focus ensures that individual needs are taken into account. Tailor-made solutions and first-class service are at the heart of the team's work.
Overall, the support provided by the Niederrhein Business Center offers efficiency, professionalism and time savings for entrepreneurs of all kinds.
Conclusion: The choice between UG and GmbH depends on individual needs
The decision between establishing a UG (limited liability) and a GmbH should be carefully considered, as both legal forms offer different advantages and disadvantages. Ultimately, the choice between UG and GmbH depends on the individual needs of the founder or company.
If a founder wants to quickly set up a company with little start-up capital, the UG can be an attractive option as it requires a lower minimum capital. However, it should be noted that the liability of a UG is higher than that of a GmbH.
On the other hand, the GmbH offers greater credibility and a better image towards customers and business partners due to its higher share capital. In addition, liability is limited to the company's assets, which means better protection for the founder's personal assets.
Ultimately, founders should consider their long-term goals, financial capabilities and risk tolerance in order to choose the right legal structure. It is also advisable to seek professional advice in order to understand all aspects of the formation and make informed decisions.
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