A German business account is usually the first practical step, because a GmbH's cash capital must be paid in and confirmed as at the managing directors' free disposal before registration. Residents must report cross-border payments to the Deutsche Bundesbank unless an exemption applies, for example payments of EUR 50,000 or less or payments for goods. Banks identify beneficial owners using the German more-than-25-percent test, and statutory deposit protection is capped at EUR 100,000.
Opening the account and paying in capital
Before the notary files a GmbH for registration, at least EUR 12,500 of cash and in-kind contributions must be in place, and all applicants must declare that contributions have been made and are at the managing directors' free disposal. For a UG the full capital must be paid in cash. In practice this means opening an account for the company in formation and paying the capital into it before filing.123
Reporting cross-border payments
Residents, including German subsidiaries and branches, must report incoming and outgoing cross-border payments to the Deutsche Bundesbank. Payments of up to EUR 50,000, payments for the import or export of goods and short-term loans of up to twelve months are exempt.
Intra-group service fees, royalties, dividends and capital injections above EUR 50,000 are therefore typically reportable. Assign responsibility for these reports in the finance function from the start.45
Beneficial ownership checks at onboarding
Banks apply the German beneficial ownership definition: any individual holding more than 25 percent of capital or voting rights, directly or indirectly, or otherwise controlling the company. They will expect the company's Transparency Register entry to match the ownership information supplied, so register the beneficial owners promptly after formation.67
Deposit protection
Compensation under the statutory deposit guarantee is capped at the equivalent of EUR 100,000. Companies holding larger balances should consider how treasury cash is spread across institutions.8
Documents usually needed
- Notarised articles and shareholder list (for an account for a company in formation)
- Commercial register extract once registered
- Identity documents for managing directors and authorised signatories
- Ownership chart up to the ultimate beneficial owners and Transparency Register confirmation
Common mistakes
- Filing for registration before the required capital is paid in and at the managing directors' free disposal.
- Not reporting cross-border payments above EUR 50,000, such as dividends or royalties, to the Bundesbank.
- Providing ownership information to the bank that does not match the Transparency Register entry.
- Assuming deposits above EUR 100,000 are covered by the statutory guarantee.
When the business crosses borders
- Dividends, royalties and intra-group service payments above EUR 50,000 are within the Bundesbank reporting duty unless an exemption applies.
- Payments for imports and exports of goods are exempt from payment reporting.
- Group ownership chains must be documented for bank onboarding because indirect holdings count.
What this guide does not yet confirm
These points need checking with a qualified local professional in Germany before you rely on them.
- An official statement confirming the absence of exchange controls or approval requirements for repatriation was not found.
- Bundesbank reporting deadlines (§ 71 AWV) and reporting channels were not confirmed.
- Bank customer due diligence provisions of the Anti-Money Laundering Act (§§ 10 to 12 GwG) and Transparency Register checks by banks were not confirmed.
- Banking supervision and licensing (BaFin, Bundesbank) were not reviewed.
- Typical account opening times are not stated by official sources.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 18 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
A GmbH may be filed for registration only once at least a quarter of the nominal amount of each cash share has been paid in and total paid-in cash plus agreed contributions in kind reach half of the EUR 25,000 minimum capital. GmbH formation; contributions in kind must be fully delivered before filing (§ 7 Abs. 3). Does not apply to the UG, which must pay in full.
A company formed with share capital below the EUR 25,000 GmbH minimum must use the designation 'Unternehmergesellschaft (haftungsbeschränkt)' or 'UG (haftungsbeschränkt)', may be filed for registration only when its capital is fully paid in, and cannot use contributions in kind. UG (haftungsbeschränkt) under § 5a GmbHG.
The GmbH registration application must include a declaration by all applicants that the contributions have been made as required and are at the free disposal of the managing directors. GmbH and UG formation; in practice requires a bank account into which cash contributions are paid.
The statement that a bank account is needed in practice is an inference placed in scope, not stated by the source.
Residents must report incoming and outgoing cross-border payments to the Deutsche Bundesbank. Residents (Inländer) under the Foreign Trade and Payments Ordinance; reporting deadlines in § 71 Abs. 6 AWV; exemptions in de-banking-002.
Payments of up to EUR 50,000 (or the equivalent in another currency), payments for the import or export of goods and short-term loans of up to twelve months are exempt from the Bundesbank payment reporting duty. Exemptions from § 67 Abs. 1 AWV.
A beneficial owner of a company is any natural person who directly or indirectly holds more than 25 percent of the capital, controls more than 25 percent of the voting rights or exercises comparable control; if none can be identified, the legal representative or managing partner is deemed the beneficial owner. Companies other than registered foundations and listed companies subject to equivalent transparency rules.
Legal entities under private law and registered partnerships must obtain, keep up to date and report details of their beneficial owners electronically to the registry authority for the Transparency Register without delay. Applies to German companies (including GmbH and UG) and registered partnerships; certain foreign entities are also covered (see de-regulatory-003).
§ 20 Abs. 2 as displayed contains no notification fiction (Mitteilungsfiktion); an active report is required.
Statutory deposit guarantee compensation is capped at the equivalent of EUR 100,000. Deposits with institutions covered by the Deposit Guarantee Act.
Questions on this topic
4 statements on banking, payments and capital flows in Germany
