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GRP Rainer LLP: Assessing the appropriate legal form

GRP Rainer LLP: Assessing the appropriate legal form

GRP Rainer LLP: Assessing the appropriate legal form
One important issue when establishing a company is choosing the appropriate legal form. Lawyers at GRP Rainer are able to assess the respective pros and cons as well as advise businesses when reaching their decision.

GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London conclude: Each type of company features various advantages and disadvantages. Choosing the right legal form can thus prove to be critical to the success of the company. The law firm GRP Rainer boasts a high level of expertise in the field of company law and advises businesses on their choice of legal form. The first task is to review both the corporate objectives and the possibilities open to the business. The next step is to determine the appropriate type of company for the business.

German company law recognizes a wide variety of corporate forms. These encompass both Personengesellschaften [partnerships] and Kapitalgesellschaften [corporations], ranging from the Gesellschaft bürgerlichen Rechts (GbR) [partnership organized under the German Civil Code] to the Aktiengesellschaft (AG) [stock corporation]. Among the most popular legal forms is the GmbH (Gesellschaft mit beschränkter Haftung) [private limited company]. One reason for this, among other things, is the limited liability to which the shareholders are exposed. In addition to liability, issues such as the required registered capital and tax aspects are crucial when it comes to choosing the appropriate legal form. Tax optimization, in particular, is of major importance to businesses. It therefore makes sense to obtain advice from an interdisciplinary team that is versed in the relevant legal fields if one is to find the optimal solution. The law firm GRP Rainer LLP offers interdisciplinary advice from a single source and is thus able to ensure that a solution is found which meets the specific needs of its clients.

However, it ought to be noted that company law is subject to change as well. Freedom of establishment has meant that businesses are no longer limited to the corporate forms of their respective countries. It is now also possible to opt for legal forms from outside of Germany, which may be more suited to the structure and aims of a given business.

Once the right legal form has been decided, agreements need to be drawn up accordingly. Rights and obligations as well as responsibilities have to be defined. The more detail in which the agreements are drafted, the better the chances of being able to prevent conflicts from arising at a later date that could potentially jeopardize the existence of the company.

GRP Rainer Rechtsanwälte Steuerberater is an international law firm specialized business law. In Cologne, Berlin, Bonn, Dusseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London, the firm advises in particular in the fields of the entire business law, corporate law, tax law, as well as capital markets and banking law. Our clients include national and international companies and corporations, institutional investors, and private individuals.

GRP Rainer LLP
Michael Rainer
Augustinerstraße 10
50667 Cologne
+49 221-27 22 75-0
+49 221-27 22 75-24

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