German Director
No, it is not necessary to have a German Director of a German UG (Unternehmergesellschaft, haftungsbeschränkt). However, there are some key requirements to consider:
1. Nationality & Residency
- The managing director (Geschäftsführer) can be of any nationality.
- However, they must have a valid residence permit and work authorization if they are not from the EU/EEA or Switzerland.
- If the director is based outside Germany, the company may need a local authorized representative to handle administrative matters.
2. Registered Address in Germany
- The UG itself must have a registered office (Geschäftssitz) in Germany.
- If the director is not residing in Germany, it is recommended to have someone locally available to manage the company’s affairs.
3. Appointment of Directors
- The UG can have one or multiple directors.
- Directors are appointed by the shareholders (owners) of the UG.
- The director does not need to be a shareholder.
4. Tax & Legal Considerations
- If all directors are non-residents, German authorities may question whether the UG is effectively managed from Germany.
- This could impact corporate tax obligations and lead to taxation in another country.
5. Bank Account & Administration
- Some German banks may require at least one director to be a resident in Germany for opening a business account.
- Administrative tasks like handling tax filings and contracts are easier with a local director.
Conclusion
A German UG does not require a German director, but having a resident director (or a local representative) can simplify operations, tax compliance, and banking.
Would you like help with the process of setting up a UG in Germany?
Visit our local Trustee and Nominee Website or contact us if you have any questions.
