Question 1

What is a UG Holding and how does it work?

Accepted Answer

A UG Holding is a corporate structure in which an Unternehmergesellschaft (haftungsbeschrankt) (UG) acts as the parent company and holds shares in one or more subsidiaries. The parent company has participation in other companies as its corporate purpose, whilst the subsidiaries are legally independent and autonomous before the law.

Question 2

How much share capital do I need to establish a UG Holding?

Accepted Answer

Legally, a share capital of at least 1 euro is sufficient. However, at least 300 euros is recommended. In addition, there are notary costs from approximately 250 euros and 300 euros for entry in the Commercial Register. The total costs are therefore significantly lower than for a traditional GmbH, for which normally 25,000 euros share capital is required.

Question 3

What is the saving obligation for a UG Holding?

Accepted Answer

A special feature of the UG (haftungsbeschrankt) is the statutory saving obligation: a maximum of 75% of the earned profits may be distributed. The remaining 25% must be paid into a statutory reserve - until enough capital has been saved to convert the UG into a regular GmbH.

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