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. However, there are also exceptions to this rule.
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.
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How to register a fintech company in Germany
If you are interested in starting a company in Germany in the fintech sector, you can register a private or public limited liability company, depending on whether you will carry out a licensed activity or not. The steps imply:
- drafting the Articles of Association;
- reserving a trading name;
- opening a bank account and depositing the share capital;
- filing the incorporation papers with the Trade Register.
Following that, you will need to register for taxation. An important aspect to consider when you open a fintech company in Germany is that you may be required to draft a prospectus. This document will be required by the Financial Supervisory Board when filing for a financial license.
Our German company formation agents can take you through all the steps above.
Licensing options for fintech companies in Germany
In most cases, opening a business in Germany for fintech activities requires filing for specific permits. Here are some of them:
- financial licenses;
- investment permits;
- crypto licenses.
For each of them, special requirements may apply, such as the need to prepare specific documents or ensure a certain share capital.
Activities a fintech business can complete 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.
Our company registration consultantsin Germany can offer in-depth advice on all licensing requirements for such businesses.
Reasons to start a fintech company in Germany
Fintech refers to financial technologies that represent the newest trend in the global economy. 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.
Starting a company in Germany in this industry could prove to be a good move because the German Finance Ministry actively supports start-ups in the domain of fintech by organizing events and meetings between mutually interested parties. As such, banks and fintech companies can develop together efficient strategies for the future development of digital financial services.
Not only does Germany offer a vibrant fintech landscape where foreign investors can rapidly be acquainted with the latest trends, but Germany also provides a clear and well-structured Company Law. If you are thinking of starting a company in Germany in the fintech sector, you will have to register your company with the German Trade Register by providing the name of your company and the articles of association. One of our specialists in company registration in Germany can assist you with the elaboration of the complete documentation so that you can focus on more important aspects in the organization of your fintech company.
Other aspects to consider when starting a company in Germany in the fintech industry
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. The German banks have a great interest in investing in fintech start-ups in order to encourage the development of new financial products that can be used in transactions.
Moreover, since we talk about a domain with a high level of specialization, Germany is the right place to open your fintech business. The workforce of the German state is educated and trained, so you won’t encounter difficulties in implementing your project in this country.
Legislation applicable in the German fintech sector
The Federal Financial Supervisory Authority is the main governing body of the financial sector, with applicability to fintech activities also. According to it, such a business must comply with:
- the Banking Act;
- the Securities Institutions Law;
- the Money Laundering Act;
- the Electronic Securities Law.
The Authority has also drafted the latest report related to the number of fintech businesses operating in Germany. According to it, at the level of 2023:
- there were over 700 such companies;
- 160 were in Berlin and 126 were located in Frankfurt;
- notable numbers of companies were also in Munich – 40, and Hamburg – 28.
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.