Choosing a legal form: from sole proprietorship to eG and gGmbH

This page explains the steps and names its sources. It is not legal, tax or funding advice. To find out what applies to your plans, check with an advisory service or the authority responsible.

Starting question

I am founding alone or as a team. Which legal forms exist, how do they differ, and who can help me decide?

In short: this portal does not recommend any legal form. It reports what the Federal Ministry for Economic Affairs and Energy (BMWE) and the law say. According to the BMWE, the choice of legal form determines who is liable, with which assets and to what extent, which taxes are paid and which legal rules must be followed [1]. In addition, the legal forms laid down by the legislator are exhaustive; according to the BMWE, you cannot invent a legal form of your own [1].

Steps

1. Clarify your situation. According to the BMWE, legal forms differ mainly in liability. It also matters whether you start alone or with partners and whether you run a trade or work in a liberal profession [1].
2. Compare the forms. The BMWE overview lists, among others [1]:
   • Sole proprietorship (Einzelunternehmen): one person, no minimum capital, unlimited liability with business and private assets.
   • GbR (civil-law partnership): at least two people, no fixed capital; the partnership and the partners are also liable with their private assets.
   • e.K. (registered merchant): one person, entry in the commercial register, unlimited liability.
   • GmbH (limited liability company): one person or more, minimum share capital of 25,000 euros, of which 12,500 euros must be paid in on formation, articles of association notarised.
   • UG (haftungsbeschränkt): share capital from 1 euro per shareholder, paid in full on formation, cash formation only.
   • eG (cooperative): at least three founding members, no minimum capital, liability usually limited to the cooperative’s assets, compulsory audit by an auditing association before registration.
   Other forms such as OHG, KG and AG are in the same overview [1].
3. Check the law. The share capital of a GmbH must be at least twenty-five thousand euros (section 5 GmbHG) [2]. If it is lower, the company name must include Unternehmergesellschaft (haftungsbeschränkt) or UG (haftungsbeschränkt). The company may only be registered once the share capital has been paid in full, and contributions in kind are excluded (section 5a GmbHG) [3]. In addition, the UG must put a quarter of its annual net profit, reduced by any loss carried forward, into a statutory reserve [3].
4. Cooperative (eG). According to section 1 GenG, its purpose is to support the income or business of its members, or their social or cultural interests, through a jointly run business [5]. Every cooperative must belong to an association that has been granted the right to audit (Prüfungsverband) [6]. This association carries out an audit before the entry in the register of cooperatives [1].
5. gGmbH. A GmbH that pursues exclusively and directly tax-privileged purposes under sections 51 to 68 of the Fiscal Code (Abgabenordnung) may use the abbreviation gGmbH (section 4 GmbHG) [4]. Whether the articles meet the tax requirements is confirmed by the tax office in a formal notice under section 60a AO. In Berlin this is usually the responsibility of the Finanzamt für Körperschaften I [8]. More in the guide Founding a sustainable or social business.
6. Check the name. The company name of a GmbH must contain the words Gesellschaft mit beschränkter Haftung or an understandable abbreviation [4]. According to the BMWE, companies in the commercial register or the register of cooperatives must always state their legal form in their name [1].
7. Get advice. The BMWE advises involving a tax adviser and a lawyer in the decision; as a starting point it names the legal form finder (Rechtsformfinder) of the Gründerplattform [1]. Changing the legal form later is possible under certain conditions but can have tax consequences [1]. The legal department of the Handwerkskammer Berlin advises its members free of charge, including on choosing a legal form and on articles of association [9]. You will find more offices under Advice.

Who is responsible

Offices from the portal’s directory, in no particular order:

• Anlaufstellen für Gründungen (Übersicht der Senatsverwaltung) · Berlin-wide
  The Senatsverwaltung für Wirtschaft, Energie und Betriebe lists points of contact for starting a business in Berlin on its website, from the first idea to the start-up, including contacts at universities.
• Berlin Partner für Wirtschaft und Technologie · Berlin-wide
  Berlin Partner, the economic development agency of the State of Berlin, offers business and technology support for companies, investors and research institutions; the advisory services are free of charge.
• Bürgschaftsbank zu Berlin-Brandenburg · Berlin-wide
  Bürgschaftsbank zu Berlin-Brandenburg takes on the risk when collateral is missing for financing a start-up; with BBBwelcome also for projects by non-EU nationals and refugees.
• Büro für Wirtschaftsförderung Pankow · Pankow
  The Büro für Wirtschaftsförderung of the Pankow district supports businesses, founders and traders with questions on the location, on settling and commercial space, on funding options and on business development.
• Einheitlicher Ansprechpartner Berlin (EA) · Berlin-wide
  The Einheitlicher Ansprechpartner Berlin (Point of Single Contact) helps entrepreneurs and those who want to become one with administrative matters; procedures such as business registration can be handled through one central contact point.

See all matching entries (19) →

Offices from the portal’s directory, in no particular order:

• Anlaufstellen für Gründungen (Übersicht der Senatsverwaltung) · Berlin-wide
  The Senatsverwaltung für Wirtschaft, Energie und Betriebe lists points of contact for starting a business in Berlin on its website, from the first idea to the start-up, including contacts at universities.
• Berlin Partner für Wirtschaft und Technologie · Berlin-wide
  Berlin Partner, the economic development agency of the State of Berlin, offers business and technology support for companies, investors and research institutions; the advisory services are free of charge.
• Bürgschaftsbank zu Berlin-Brandenburg · Berlin-wide
  Bürgschaftsbank zu Berlin-Brandenburg takes on the risk when collateral is missing for financing a start-up; with BBBwelcome also for projects by non-EU nationals and refugees.
• Büro für Wirtschaftsförderung Pankow · Pankow
  The Büro für Wirtschaftsförderung of the Pankow district supports businesses, founders and traders with questions on the location, on settling and commercial space, on funding options and on business development.
• Einheitlicher Ansprechpartner Berlin (EA) · Berlin-wide
  The Einheitlicher Ansprechpartner Berlin (Point of Single Contact) helps entrepreneurs and those who want to become one with administrative matters; procedures such as business registration can be handled through one central contact point.

See all matching entries (20) →

Next step

Read the BMWE overview of legal forms. It compares capital, liability, registers and formal requirements [1]: existenzgruendungsportal.de – Rechtsformen

Sources (in German)

1. Existenzgründungsportal – Rechtsformen, Bundesministerium für Wirtschaft und Energie (BMWE). Page date: none. Retrieved 6 November 2026.
2. § 5 GmbHG – Stammkapital; Geschäftsanteil, Bundesministerium der Justiz und für Verbraucherschutz (gesetze-im-internet.de). Page date: none. Retrieved 6 November 2026.
3. § 5a GmbHG – Unternehmergesellschaft, Bundesministerium der Justiz und für Verbraucherschutz (gesetze-im-internet.de). Page date: none. Retrieved 6 November 2026.
4. § 4 GmbHG – Firma, Bundesministerium der Justiz und für Verbraucherschutz (gesetze-im-internet.de). Page date: none. Retrieved 6 November 2026.
5. § 1 GenG – Wesen der Genossenschaft, Bundesministerium der Justiz und für Verbraucherschutz (gesetze-im-internet.de). Page date: none. Retrieved 6 November 2026.
6. § 54 GenG – Pflichtmitgliedschaft im Prüfungsverband, Bundesministerium der Justiz und für Verbraucherschutz (gesetze-im-internet.de). Page date: none. Retrieved 6 November 2026.
7. Existenzgründungsportal – Behörden, Bundesministerium für Wirtschaft und Energie (BMWE). Page date: none. Retrieved 6 November 2026.
8. Körperschaftsteuer – Freistellungsbescheid (Anerkennung der Gemeinnützigkeit), Land Berlin, ServicePortal (zuständig: Finanzamt für Körperschaften I). Page date: none. Retrieved 6 November 2026.
9. Persönliche Rechtsberatung, Handwerkskammer Berlin. Page date: 5 January 2026. Retrieved 6 November 2026.