The new requirements on the recording of working time are already applicable law and must be implemented by German employers. It is particularly important to note that not only the provision of a system for recording working time is mandatory, but the actual use of it. Time recording is part of occupational health and safety and, according to the draft law of the Federal Ministry of Labour and Social Affairs, is to be recorded electronically. However, it also provides for some exceptions for small businesses.

The New Regulations on the Recording of Working Time

If your company offers goods or services online, you are generally obliged to provide an imprint on your website. The imprint provides information about you as a provider so that your customers have an overview of your identity. This is intended to create legal certainty and transparency. The legislator regulates this obligation in the Telemedia Act (TMG). This obligation includes a list of details that you as the provider are obliged to clearly display on your website. An incorrect imprint can constitute a breach of competition law and result in fines.

The Imprint Obligation: The Legal Must for Your Website

The amendments suggested in the proposal will encourage significantly the implementation of employee stock ownership plans (ESOPs). Many companies will fall within the scope of section 19a EStG thanks to the attenuation of the eligibility criteria. The inclusion of group companies grants new structuring opportunities. And the special treatment of leaver-schemes as well as the introduction of a flat-rate taxation scheme will reduce uncertainties with respect to the structuring. The dry income problem is limited as far as possible.

Fresh Impetus for Employee Stock Ownership Plans (ESOPs)? The Proposal for a Viable Investments Act Package

By using your company name for goods and services, you can, even if unknowingly, infringe the trademarks or other trademark rights of third parties. Warnings and their costs can be the consequence. Often the change of your company name, i.e., the change of your start-up name, is the necessary way out. This usually has negative consequences from an external perspective, but also from a marketing point of view. In order to protect yourself from such unpleasant consequences, it is advisable to check the start-up name, the company and product names you have designed for possible collisions with existing trademarks before founding the company.

 Trademark Research Before Founding a Start-up

From a founders’ perspective, virtual shares have many advantages. They motivate good employees to become personally involved and stay in the company without making them shareholders. This is because no real GmbH shares are issued to the employees. They only participate economically in the appreciation of the company.

Virtual Shares From a Founder’s Perspective: Their Advantages and How They Work

There are new eligibility guidelines for the Invest funding programme. They apply to applications from 06.02.2023 on and make things easier with respect to convertible loans. 

Convertible Loans and the New Invest Eligibility Guidelines

Since 1st of August 2022 you can establish a GmbH or UG (haftungsbeschränkt) online. The Federal Chamber of Notaries (Bundesnotarkammer) has developed a platform for the online incorporation of a GmbH or UG (haftungsbeschränkt) thanks to which you can establish a GmbH or UG (haftungsbeschränkt) subject to a two-stage identity procedure. With this procedure, you can skip the face-to-face appointment at the notary's office and replace it by a safe video call. You only need two mobile devices (computer/tablet and smartphone) on which you can download the free notary app. With this app and the special video communication system, it is possible for the notary to check your identity by reading the chip of your suitable identity document (eID-capable identity card/eID card for EU and EEA citizens/electronic residence permit). Furthermore, the online procedure also enables the notarial certification of applications to the commercial register.

The Online Formation and Registration of a Gmbh or UG (Haftungsbeschränkt)

For EU citizens and members of the European Economic Area, it is possible to establish a GmbH online in Germany using the eID card. The Federal Chamber of Notaries has developed its own portal and a notary app that can be used to notarise the new company. The eID card ensures a secure identity procedure, which saves the need to go to a notary with little application effort and produces a modern digitalised formation procedure.

The eID Card for EU Citizens and Nationals of the European Economic Area

Are you planning to dissolve a GmbH for reasons of age, insolvency or other motivation? Or do you possibly want to deregister your UG and thus end your self-employment?  Then the company can be deleted from the commercial register after the notarised resolution of the shareholders and its dissolution and liquidation. For the liquidation of the GmbH or UG, all outstanding payments and claims must first be settled and existing property must be sold.
 
There is no specific checklist for the liquidation of the GmbH or UG or a model for dissolution, as each company is individual. A capital reserve for the liquidation of the GmbH or UG can help to raise the costs of the liquidation of the GmbH or UG including the notary costs. It is important to consider the taxes still due, which must continue to be paid until the final cancellation of the GmbH or UG.

Liquidation of a GmbH or UG

The digital ID card saves you time and money. For a long time, many appointments could only be handled in person or in writing by post. Now, they can be done much more quickly and efficiently with the digital ID card.

This is a relief for the self-employed and freelancers in particular, but private individuals will also save themselves more and more administrative procedures in the future by using the digital ID card. In other areas of life, such as sport and leisure (e.g. digital DGV ID card), but also in companies, digital ID cards are also becoming increasingly popular forms of identification.


Digital ID Card - Convenient and Modern

Everyone should take care of their digital estate in good time. After all, you don't know when death or a serious illness will strike you. The more precise the wording on how to deal with the digital estate, the easier it is for the relatives to arrange everything in your best interest.

Advice for Founders