ᐅ The roofing company is a limited liability company (LLC) – is that a problem?
Created on: 12 Apr 2012 22:33
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meinermeinsM
meinermeins12 Apr 2012 22:33Dear builders,
I am planning to have my house reroofed and have already received several quotes from roofing companies.
Now to my question: What does the "UG haftungsbeschränkt" after the company name mean? Does anyone have experience with this?
Best regards,
Hans
I am planning to have my house reroofed and have already received several quotes from roofing companies.
Now to my question: What does the "UG haftungsbeschränkt" after the company name mean? Does anyone have experience with this?
Best regards,
Hans
B
Bauexperte13 Apr 2012 11:46Hello Hans,
This type of company is often chosen by startups or new business founders and is not a cause for concern.
Since November 1, 2008, the law for modernizing the GmbH law and combating abuses (MoMiG) has been in effect. Since then, it has been possible for founders to establish an entrepreneurial company, called a Mini-GmbH. The entrepreneurial company (Mini GmbH) is a subtype of the traditional GmbH. The most significant difference lies in the amount of share capital required. While a traditional GmbH requires €25,000 of share capital, the Mini GmbH – entrepreneurial company – requires only €1, hence the name “1 Euro GmbH.”
Once the share capital is fully paid in, the Mini GmbH can be registered in the commercial register. The managing director of the entrepreneurial company must certify the payment of share capital when applying for registration. This new entrepreneurial company can be founded with capital starting from €1 but comes with certain restrictions, such as:
Liability of the Entrepreneurial Company
The entrepreneurial company – Mini GmbH – has its own legal personality and can be sued independently. This ensures a strict separation between the founder’s personal assets and the new entrepreneurial company. Generally, the founder is not liable for the company’s debts if they have properly fulfilled their duties. If the entrepreneurial company cannot meet its obligations, insolvency must be declared. Access to the founder’s private assets is excluded as long as shareholder and managing director duties have been properly observed.
Kind regards
meinermeins schrieb:
Good day. I am planning to have my house roof redone and have already received several offers from roofing companies. Now my question is, what does the "UG haftungsbeschränkt" behind the company name mean?????
This type of company is often chosen by startups or new business founders and is not a cause for concern.
Since November 1, 2008, the law for modernizing the GmbH law and combating abuses (MoMiG) has been in effect. Since then, it has been possible for founders to establish an entrepreneurial company, called a Mini-GmbH. The entrepreneurial company (Mini GmbH) is a subtype of the traditional GmbH. The most significant difference lies in the amount of share capital required. While a traditional GmbH requires €25,000 of share capital, the Mini GmbH – entrepreneurial company – requires only €1, hence the name “1 Euro GmbH.”
Once the share capital is fully paid in, the Mini GmbH can be registered in the commercial register. The managing director of the entrepreneurial company must certify the payment of share capital when applying for registration. This new entrepreneurial company can be founded with capital starting from €1 but comes with certain restrictions, such as:
- A reserve of 25% of the annual profits must be set aside until the share capital of €25,000 is reached. After that, the entrepreneurial company can continue as a standard GmbH.
- The acceptance of contributions in kind and the option for half contributions were removed. The share capital must be paid entirely in cash before the company registration.
Liability of the Entrepreneurial Company
The entrepreneurial company – Mini GmbH – has its own legal personality and can be sued independently. This ensures a strict separation between the founder’s personal assets and the new entrepreneurial company. Generally, the founder is not liable for the company’s debts if they have properly fulfilled their duties. If the entrepreneurial company cannot meet its obligations, insolvency must be declared. Access to the founder’s private assets is excluded as long as shareholder and managing director duties have been properly observed.
Kind regards