Why can a GmbH-companycompany formation be delayed?

Published on: September 23, 2020Categories: Start-up & FoundingKeywords: , Reading time: 2 min.
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Christina Schröder writes about legal topics for the Love & Law blog at Recht 24/7.

Before you can start your business operations, you need to set up the GmbH. You should make sure that there are no delays. You should avoid these obstacles as far as possible:

We give you a brief overview of how it works smoothly.

Desired company name is rejected

The name of your company should aptly describe your company and achieve a high recognition value. At the same time, you want to stand out from the competition. Legal regulations must be observed at all times:

  • Compulsory addition: the designation GmbH or UG (haftungsbeschränkt) must be visible in the company name
  • Distinctiveness: no conflict with existing companies with regard to the object of the company
  • no misleading information in terms of location, size, quality, activities, meaning or abbreviations

To save costs for multiple registrations, you should use the free IHK check for your company name.

Object of the company is rejected

For all companies that are entered in the commercial register, it is legally mandatory to state the purpose of the company. The competent local court will also carefully check the object of the company if you intend to establish a UG. This examination includes the correct information on the area and type of activity of the company to be founded. If this is not clearly defined, it may be rejected.

Application contains formal errors

In principle, you can draft the registration of your company with the commercial register yourself. However, this is not advisable due to possible formal errors. Formal errors or inadmissible clauses are grounds for rejection both in the application to the commercial register and in the articles of association of your GmbH or UG (haftungsbeschränkt). In view of possible additional costs, it is better to have both the articles of association and the commercial register application drawn up by an experienced lawyer or notary.

IHK examination of the company name is delayed

Due to an increased workload, the voluntary IHK examination of your company name may be delayed. Nevertheless, it is advisable not to skip this important intermediate step. The local Chamber of Industry and Commerce's clearance assessment of your desired name is a good sign. This significantly increases the likelihood of a positive decision at the competent local court. If you complete all the formalities in one go, you will save additional costs for multiple attempts to set up a company.

269.00 EURO - including advice on the start-up process