If you want to set up a financial company in Germany, our local specialists can guide you through the registration procedure. Our experts in company registration in Germany can also help you obtain a financial license by elaborating on the documents required for registration and with specialized legal counselling.
| Quick Facts | |
|---|---|
| Specific applicable law | – German Commercial Code, – Banking Act. |
Types of financial companies in Germany | – banks, – insurance and reinsurance companies, – investment funds, – credit institutions, – non-banking entities, – fintech companies, etc. |
Activities completed by financial entities | – consumer credit issuance and management, – banking, – insurance/reinsurance, – investment management, – financial advisory, etc. |
| Special licensing requirements (YES/NO) | Yes, special business licenses are required for certain activities. |
| Types of licenses available | – BaFin licenses, – electronic money institution licenses, – investment licenses, – crypto business permits. |
| Licensing authority | German Financial Supervisory Authority (BaFin). |
| Special requirements (if any) | Yes, companies must draft specific documents to obtain their licenses (business plans, Know-Your-Client regulations, Risk-Based Approach policies). |
| Legal forms recommended to open a financial company in Germany | – private limited liability companies, – joint stock corporations. |
| Special business forms for foreign companies (if any) | The branch office is recommended. |
| Local management requirements (YES/NO) | No, however, for foreign companies licensing requirements may apply for the manager. |
| Local registered address required (YES/NO) | Yes. |
| Other considerations when setting up a financial business | Specific share capital requirements apply based on the license to be obtained. |
| Company registration time frame (approx.) | Approx. one month. |
| Licensing time frame (approx.) | Depends on the type of license required. |
| Support in opening a financial company in Germany (YES/NO) | Yes, our German company formation consultants can help you set up a financial business. |
Table of Contents
What are the steps to open a financial company in Germany?
The following:
- draft the incorporation papers of the chosen business form;
- open a bank account for the deposit of the share capital;
- file the documents with the Commercial Register;
- register for taxation with the Tax Department;
- prepare the documents for the licensing phase;
- apply for the specific financial license with the relevant authority.
What are the suitable business forms to set up a financial company in Germany?
You can register it as a private limited liability company or as a joint stock corporation. The choice should be based on the size of the operations.
Are there any specific requirements I should consider when opening a German financial company?
Yes, an important condition is to prepare a 3-year detailed business plan, which must be submitted when applying for the dedicated license for your activities.
Are there any special management requirements applicable to financial companies in Germany?
Yes, such companies must appoint managers who have extensive experience in the financial sector.
We also have an infographic on this type of business:
What are the licenses available for financial operations in Germany?
Companies must apply for a financial or banking license issued by the German Financial Supervisory Authority (BaFin). You can obtain the following licenses for a German financial company:
- an electronic money institution authorization;
- an investment license;
- a crypto business permit;
- a banking license.
Here are the operations you can apply for based on the licenses presented above:
- the electronic money institution (EMI) license is required if your business will engage in issuing electronic money, providing payment services, and/or managing e-wallets;
- the second type of license is associated with the investment management companies that administer investment funds;
- the crypto license is issued if your business deals in the issuance of digital money, crypto exchanges, etc;
- the banking license is issued to traditional banking institutions.
What are the documents required to obtain a financial license in Germany?
On a general basis, the following:
- the company’s Certificate of Registration;
- the company’s statutory documents;
- the rules of internal procedures;
- Anti-Money Laundering rules;
- proof of depositing the required share capital, in accordance with the type of license;
- CVs of the shareholders and managers;
- proof of professional experience and suitability of the director(s);
- the detailed business plan.
IMPORTANT! Depending on the type of financial license applied for, additional documents may be required.
Are there capital requirements applicable to this type of company, particularly?
In order to differentiate the activities that can be performed under a financial license in Germany, special capital requirements apply, as follows:
- for banks, the minimum capital requirement is EUR 5 million;
- for investment companies, the minimum share capital is established at EUR 730,000;
- for payment services providers, at least EUR 125,000 must be supplied when applying for the license;
- electronic money issuers must deposit at least EUR 350,000 as a share capital;
- a financial adviser must ensure a minimum capital of EUR 20,000, however, the amount can go up to EUR 125,000;
- for insurance and reinsurance companies, the share capital requirements range from EUR 1.3 million to EUR 4 million, depending on the products they supply.
Can foreign financial companies expand their operations in Germany?
Yes, they can. They can do so by setting up branches or subsidiaries.
How long does it take to register a financial company in Germany? How about obtaining the financial license?
The company can be registered in about a month, while the licensing phase can take from 6 to 12 months, depending on the type of business permit.
Here is also a video on this subject:
What are the activities I can undertake with a financial license in Germany?
- banking;
- credit issuance;
- deposit creation;
- investment and contractual brokerage;
- money transfers;
- currency exchanges;
- credit card issuance;
- trading platform operations;
- investment portfolio management;
- insurance and reinsurance.
You can rely on our specialists for more information regarding the procedure of starting a company in Germany. If you decide to open a financial company in Germany, you can contact our consultants for assistance with the company incorporation procedure.