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Rechtsanwalt Marian Härtel - ITMediaLaw

Ltd. (Limited) in Germany and #Brexit? Act now!

7. November 2022
in Corporate
Reading Time: 2 mins read
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limited company

Due to the introduction of the UG (limited liability company) in Germany, the Limited (under English law), with German administrative headquarters, have declined significantly. However, older companies in particular are still in existence, since this legal form, unlike an entrepreneurial company, could only be changed to a German legal form in a cumbersome manner. Moreover, such a conversion is quite costly. Nevertheless, there are currently probably 8,000 to 10,000 such companies, often founded to circumvent the high share capital hurdles in Germany.

With the now very real threat of a disorderly #Brexit, the question now is what will become of these societies in Germany. After all, these can be continued without further ado after a Brexit. All limited companies with their administrative headquarters in Germany can no longer rely on the freedom of establishment. According to the current view, this would result in the company becoming a partnership under the domicile theory applicable in Germany. Particularly when operating a commercial enterprise, which would then create a general partnership, this would have serious effects on the representation regulations and liabilities of the partners.

Companies should therefore be sure to seek advice from a lawyer, because the actions that should now be taken depend on the individual cases. Sometimes it may be possible to transfer contracts, rights and assets to a German company, but often existing debts or receivables as well as tax law aspects, such as loss carry-forwards, could argue against such an arrangement. Therefore, only actions under the German Transformation Act are often eligible. However, it will generally not be possible to complete the necessary formalities by the time of the presumed #Brexit. The amendments made by the Fourth Act Amending the Reorganization Act are also unlikely to help in reality.

Under certain circumstances, the only option is to wind up the company in an orderly manner, to accept the liability risk (or to reduce it) or, for example, to transfer the shareholder shares to a German company (resulting in nesting). Whatever you decide, time is running out and anyone who does NOT want to suddenly be fully liable with their own private assets after a disorderly Brexit should act soon.

Marian Härtel
Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.

Tags: BeratungHaftungLawsVerträge

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  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
    • Laws
    • Legal terms
    • Contract types
    • Clause types
    • Forms of financing
    • Legal means
    • Authorities
    • Company forms
    • Tax
    • Concepts
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
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