Buying a Registered Company in Germany and Changing its Business Activity

Germany is a popular destination for entrepreneurs and businesses looking to expand their operations in Europe. One way to establish a presence in the country is by buying a registered company. In this article, we will explore the process of buying a registered company in Germany and changing its business activity.

Why Buy a Registered Company in Germany?

Buying a registered company in Germany can be an attractive option for several reasons. Firstly, it allows you to establish a presence in the country quickly, as the company is already registered. This can be particularly beneficial if you are looking to take advantage of business opportunities in Germany or the wider European market.

Process of Buying a Registered Company

The process of buying a registered company in Germany involves several steps:

• Search for a company: You can search for a company to buy through various channels, such as business brokers, online marketplaces, or industry associations.
• Due diligence: Once you have identified a potential company, you will need to conduct due diligence to verify its financial and legal status.
• Negotiate the purchase price: After completing due diligence, you can negotiate the purchase price with the seller.
• Sign a share purchase agreement: The sale is typically documented in a share purchase agreement, which outlines the terms and conditions of the sale.
• Register the change of ownership: The change of ownership must be registered with the relevant commercial register (Handelsregister).

Changing the Business Activity

If the company you buy is already registered with a specific business activity, you may need to change this activity to align with your own business plans. In Germany, this process is known as “Änderung des Unternehmensgegenstands”.

To change the business activity, you will need to:

• Check the company’s articles of association: Review the company’s articles of association to determine if they need to be amended to reflect the change in business activity.
• Pass a resolution: The shareholders must pass a resolution to change the business activity.
• Amend the articles of association: If necessary, amend the articles of association to reflect the change in business activity.
• Register the change: Register the change with the relevant commercial register (Handelsregister).

Buying a registered company in Germany can be a viable option for entrepreneurs and businesses looking to establish a presence in the country. However, it is essential to follow the necessary steps to ensure a smooth transfer of ownership and to change the business activity if required. It is recommended that you seek professional advice from a lawyer or tax advisor to ensure compliance with all relevant regulations.