Small stock corporation (Kleine AG)
The “kleine AG” can be an alternative to other legal form, especially to the GmbH, but is more suitable for midsize companies already in operation than for start-ups. The kleine AG also requires a minimum share capital: €50,000. A small number of shareholders provide the financial basis in this case. Employees or customers can also be involved by the issue of shares in the company, strengthening their loyalty to the enterprise. The stock of a kleine AG is not traded on the stock exchange.
The kleine AG is liable to contract partners solely to the extent of the stock capital.
A shareholders’ agreement notarised by a civil-law notary is required. The kleine AG must be entered in the Commercial Register.
Advantages
Equity from shareholders, limited liability.
Disadvantages
Minimum capital of €50,000 required.
The “kleine AG” can be an alternative to other legal form, especially to the GmbH, but is more suitable for midsize companies already in operation than for start-ups. The kleine AG also requires a minimum share capital: €50,000. A small number of shareholders provide the financial basis in this case. Employees or customers can also be involved by the issue of shares in the company, strengthening their loyalty to the enterprise. The stock of a kleine AG is not traded on the stock exchange.
The kleine AG is liable to contract partners solely to the extent of the stock capital.
A shareholders’ agreement notarised by a civil-law notary is required. The kleine AG must be entered in the Commercial Register.
Advantages
Equity from shareholders, limited liability.
Disadvantages
Minimum capital of €50,000 required.