With immediate effect, limited liability companies (“GmbH”) and the entrepreneurial companies (“UG haftungsbeschränkt”) popular with start-ups can also be formed online. Due to a change in the law, the required notarial deed of partnership can now also be done online. A personal appearance before the notary is no longer required.

In concrete terms, this is to be implemented technically by means of a secure video communication system to be operated by the Federal Chamber of Notaries. The parties involved will be identified by means of certain electronic means of identification, e.g. German ID card with eID function. Qualified electronic signatures replace the signatures previously required.

For the time being, the amendment to the law only affects companies in which the shareholders provide the share capital as a cash contribution. From August 2023, the simplifications are also to apply to non-cash formations.

The implementation of the Digitalization Directive is particularly interesting for start-ups, as it simplifies and accelerates the previously bureaucratized act of formation. Cross-border start-ups with international shareholders will also benefit from the new regulation.

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