Is there a specific type of company that needs to be registered for startups in Germany and Austria for selling products online, particularly for an e-commerce or wholesale model (e.g., selling on Amazon)? If yes, which company structure is most suitable for this purpose?
I am not familiar with the process and would appreciate guidance from someone who is already selling on Amazon Germany and has registered their business. Additionally, could you provide an estimate of the costs involved in setting up such a business?
Why not use your LTD to sell in Germany? If it’s already set up, it could simplify things like invoicing and VAT registration. Unless there’s a specific legal, tax, or operational reason, it might actually be the most straightforward option.
For starting an e-commerce or wholesale business in Germany (and similarly in Austria), the most common and suitable business structure is a GmbH (Gesellschaft mit beschränkter Haftung), which is a limited liability company. It offers legal protection, credibility, and is widely accepted by marketplaces like Amazon. A more affordable and faster option is the UG (haftungsbeschränkt) , also known as a mini-GmbH, which requires only €1 share capital but still gives you limited liability. The GmbH requires a minimum share capital of €25,000 (with €12,500 payable upfront), while the UG allows you to start small and grow into a GmbH later. Costs for setting up a GmbH usually range from €1,000 to €2,500 including notary, registration, and legal fees, while a UG can often be started for under €500. You’ll also need a local address, a German bank account, and to register for VAT. It’s highly recommended to work with a local tax advisor (Steuerberater) to handle filings, VAT compliance, and accounting, especially if you plan to sell on Amazon Germany.
It’s best to get in touch with an accountant who understands eCommerce, they’ll be able to advise you much better. If you need a good accountant, let me know.