a)A natural person of any nationality can act as a shareholder or legal representative of a German company and participate in the establishment of a German company without a shareholding ratio. The limited liability company (Gesellschaft mitbeschränkterHaftung – GmbH) is the most common legal form of German companies. It is simple, with low registered capital and less obligations for shareholders or legal persons. This type of company is flexible, has no personal responsibility, simple procedures, low processing costs, low operating costs, and is easy to apply for legal representative visas.
b)The subsidiary company (Tochtergesellschaft) is one of the common forms of foreign companies setting up branches in Germany. The subsidiary is also in the form of a limited liability company (Gesellschaft mitbeschränkterHaftung – GmbH), and its main difference from the general limited liability company is the shareholders. setting. As a shareholder, the parent company uses an independent operating entity of the same shareholder with the German subsidiary, and the parent company can dispatch management personnel to serve. The German subsidiary has independent management capability and is economically and organizationally independent, but is affiliated with the parent company. After the company is registered for two years, the subsidiary company account must be merged with the parent company.