Open a Fintech Company in Germany

Setting up a fintech company in Germany implies registering a business and then obtaining specific business licenses, in accordance with the activities to be undertaken. This is why it is an inspired choice to open a fintech enterprise in this country, with the help provided by one of our experts in company formation in Germany.

Is full foreign ownership available in a German fintech business?

Yes, you can be the sole owner of a fintech business in Germany even if you are a foreign investor.

What are the steps to establish a fintech company in Germany?

You must respect the general German company registration steps, as presented below:

1. check the availability of the trading name (there is no formal name reservation in Germany);
2. draft the Articles of Association;
3. prepare other incorporation papers, such as information about the shareholder (you) and director, and proof of a German legal address;
4. open the bank account to deposit the share capital;
5. register with the German tax authorities;
6. obtain the specific business license.

What is the most appropriate legal entity to register a fintech company in Germany?

The main recommendation is the private limited liability company (GmbH). We offer registration solutions for this business form at the starting price of EUR 3,050.

What is the minimum capital to open a fintech company in Germany?

The minimum amount imposed by BaFin (the German Financial Sector Regulator) depends on the license you want to obtain. The lowest capital is EUR 20,000, while the highest can exceed EUR 350,000.

What types of licenses can I obtain for a fintech company in Germany?

Any of the following:

• the credit institution license;
• the electronic money institution license;
• the crypto-asset service provider license;
• the investment company license;
• the payment institution license.

What are the documents required to obtain a fintech license in Germany?

Generally speaking, you should prepare:

• a detailed business plan;
• a sample of the contract(s) you will provide clients with;
• the promotional documents of the business;
• the Articles of Association;
• information about the key officers in the company;
•  Anti-Money Laundering and Countering of Financing Terrorism compliance documents.

How long does it take to open a fintech company in Germany?

The entire procedure can take up to one year due to the stringent licensing verifications completed by BaFin.

How are fintech companies taxed in Germany?

They are subject to the 15% corporate tax + a 5.5% surcharge.

Note: Municipal trade taxes also apply.

What activities can I undertake through a fintech company in Germany?

Fintech covers a wide range of activities, among them some of the most popular are:

• crypto-related operations, such as exchanges, virtual money issuance, and investment advice;
• initial coin offerings (ICOs);
• e-wallet services;
• crypto custodian services;
• digital banking;
• electronic payment services;
• crowdfunding;
• robo-advice.

For some of these activities, you will be required to hire specialized staff, such as financial analysts.

What are the advantages of opening a fintech business in Germany?

The traditional financial services and methods are modernized and completed nowadays through the development and introduction of virtual assets, bitcoins, and blockchains. In this highly specialized field, Germany occupies the fourth place in the world.

Since it is such a powerful fintech center, if you open a company in Germany in this sector, you have many chances of obtaining funding from the local financial institutions.

Please feel free to contact our consultants in company formation in Germany in order to give you more details on the steps you need to take for opening a fintech enterprise in this country.