10.Q:How many types of corporations, partnerships for conducting business in Germany?
A:Corporations
There are three major forms of corporations under German law:
- Limited Liability Company (GmbH)
Including: Limited Liability Entrepreneurial Company (“Mini GmbH”)
- Partnership Limited by Shares (KGaA)
The company itself concludes contracts, possesses assets and must pay taxes.
Liability is limited to the corporation’s business assets, including share capital. A minimum share capital is required, and the accounting obligations are more extensive than those for other business legal forms (such as partnerships).
Partnerships
The main feature of a partnership is the personal commitment of the partners to their working efforts to the partnership. Any partnership requires at least two partners.
The liability of the partners for the partnership’s debts and liabilities is generally unlimited and personal. No minimum share capital is required, and the accounting obligations and publication requirements are less extensive than those for corporations.
There are five different forms of partnerships. Their main differences lie in the liability of their partners and required registration obligations.
- Civil Law Partnership (GbR)
- General Commercial Partnership (oHG)
- Limited Partnership (KG)
- Corporate Partnership (GmbH & Co.KG)
- Partnership Company (PartG)
11.Q:How about the foreign Driving Licences in Germany?
A:Germany has different categories of licenses for operating heavy trucks, cars, and motorcycles. Foreign driver’s licenses are usually recognized by the German authorities. However, a national driver’s license must first be translated if it was not issued by one of the European member states or a country belonging to the European Economic Area (EEA).
German translations can be performed by the German automobile clubs (most common is the ADAC) or internationally recognized automobile clubs of the issuing state. A translation is not required for international driver’s licenses. The Federal Republic of Germany waives the need for a translation for some countries (Andorra, Hong Kong, Monaco, New Zealand, San Marino, Switzerland, and Senegal).
Foreign driver’s licenses not issued in a country belonging to the EU or EEA only retain their validity for six months after the driver has taken up residence in Germany. After this period, permission to drive expires, and a German driver’s license must be obtained.