GmbH vs AG.
When the €50,000 upgrade pays off.
Same tax. Different governance. Different buyer and banker perception. Different path to the capital markets.
Capital and paid-in rules
GmbH: § 5 GmbHG €25,000 minimum, €12,500 paid in at registration. AG: § 7 AktG €50,000 minimum, 25% (so €12,500 minimum) paid in at registration per § 36 AktG. Both accept in-kind contributions with auditor report.
Governance: one Geschäftsführer vs three bodies
GmbH: Geschäftsführer(s) under § 35 GmbHG, Gesellschafterversammlung under § 48 GmbHG. That's it. AG: Vorstand runs the business independently (§ 76 AktG), Aufsichtsrat supervises and appoints Vorstand (min 3 members, § 95 AktG), Hauptversammlung elects Aufsichtsrat and approves key decisions.
Share transfer mechanics
GmbH: notarial share-transfer deed required (§ 15 (3) GmbHG). Every movement of GmbH shares involves a notary. AG: § 67 AktG Namensaktien transfer by endorsement + entry in Aktienregister; Inhaberaktien by delivery. Transferable securities, trade-ready.
Audit and publication
GmbH audit mandatory only above size thresholds (§ 316 HGB): 2 of 3 of total assets €7.5M, revenue €15M, 50 employees. AG: always audited, regardless of size.
When AG pays off
Planning an IPO or placement on Xetra. Multiple share classes with different voting/dividend rights. ESOP at scale (ESOP via AG shares is a native feature). Institutional investors requiring AG wrapper. Regulatory licence requiring AG (certain financial-services licences). Outside these: GmbH wins on cost and simplicity.
Conversion paths
Formwechsel under §§ 190-225 UmwG both directions (GmbH → AG, AG → GmbH). Tax-neutral under § 25 UmwStG if conditions met. No change of legal personality, same HRB number.
GmbH vs AG side by side
| Aspect | GmbH | AG |
|---|---|---|
| Statute | GmbHG | AktG |
| Min capital | €25,000 | €50,000 |
| Paid-in at registration | €12,500 | €12,500 |
| Supervisory board | Optional | Mandatory (≥3) |
| Share transfer | Notarial deed | Endorsement / delivery |
| Share classes | Flexible | Statutory classes |
| Audit | Size-based | Always |
| Publication | Size-based | Full |
| Formation cost | €700–2,900 | €1,800–5,000 |
| Formation timeline | 3–6 weeks | 6–10 weeks |
| Listing readiness | No (Formwechsel) | Native |
Frequently asked questions
What is the minimum share capital for a GmbH vs an AG?
GmbH €25,000 (€12,500 paid-in at registration). AG €50,000 (€12,500 paid-in = 25%).
Does an AG always need a supervisory board?
Yes, mandatory 3-member minimum under § 95 AktG.
Is a GmbH taxed differently from an AG?
No. Identical corporate-tax stack.
When should I switch from GmbH to AG?
When you plan to IPO, issue multiple share classes, run ESOP at scale, or when an institutional investor requires AG wrapper.
Can an AG be privately held?
Yes. Many AGs never list; the form is used for governance and share-class flexibility.
What is the Formwechsel under UmwG?
Statutory change of legal form. Same legal personality continues; capital adjusted; new Satzung.
Is the Formwechsel GmbH → AG tax-neutral?
Yes under § 25 UmwStG if conditions met (same shareholders, no book-value step-up).
How much more does AG formation cost compared to a GmbH?
Roughly double the pass-throughs and our legal scope. AG typically €3,500-7,000 legal vs €1,800-3,500 GmbH.
Why do VCs sometimes require a GmbH and sometimes an AG?
Most German VC deals use GmbH with custom Satzung + shareholders' agreement. AG is required at later-stage growth or pre-IPO when share-class sophistication demands AktG.
Does an AG always require audited accounts?
Yes, § 316 HGB requires AG audit regardless of size.
Can a sole shareholder form an AG?
Yes. A single shareholder can found an AG (Einpersonengründung). Supervisory-board minimum 3 members still applies.
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