Germany UG

UG is a legal entity in Germany, its full name is Unternehmergesellschaft (haftungsbeschränkt). It is a form of limited liability company under joint ownership. UG does not participate publicly in the market, requires a minimum of one shareholder and at least one director. UG must appoint at least one managing director (Geschäftsführer) as its legal representative; it needs no local director and no company secretary. The minimum registered capital for UG is theoretically 1 euro, but it is recommended to be 100 euros for smoother company registration, tax number application, and company account opening. UG's share capital must be paid in full, in cash, before filing, and the company must put one quarter of each year's net profit, less any loss carried forward, into a statutory reserve until its share capital reaches 25,000 euros; the reserve can only be used to increase capital or cover losses. In summary, UG is a flexible and simple legal entity suitable for small businesses and entrepreneurs.