What is the difference between GmbH, UG, LTD ...

弁理士

Germany introduced the Gesellschaft mit beschraenkter Haftung (GmbH, private limited liability company) over 120 years ago as capital company. According to the Law (Gesetz betreffend die Gesellschaften mit beschraenkter Haftung, GmbHG), 25000 EUR are required as minimum capital. For the GmbH this capital may partially or fully consist of non-cash capital, e.g. equipment, car, real estate.

In response to the UK Limited Company (Ltd), also usable in Germany under free movement in the European Union (EU), the Unternehmergesellschaft (haftungsbeschraenkt) (UG, private limited liability entrepreneurial company) was introduced in 2008 as a more attractive alternative for business starters.
Basically, the UG is a GmbH requiring only 1 EUR Minimum (cash) capital. However, UGs typically have about 10000 EUR.
Thus, a UG is easier / cheaper to start than a GmbH.

The UG has been widely accepted and replaced the UK Ltd.

For these reasons, the UG is presently very popular and trendy.
However, the conventional GmbH has a better Standing - which counts a lot!

Thus, if the founder(s) can provide the (cash or non-cash) capital, the GmbH is preferable over the UG.

By the way, for a quick start, it may be advisable to buy a shelf company (Mantelgesellschaft, for example Vorratsgesellschaft).

Further information:
DE Gesellschaft mit beschraenkter Haftung (GmbH, private limited liability company) https://de.wikipedia.org/wiki/Gesellschaft_mit_beschr%C3%A4nkter_Haftung_(Deutschland)
DE Unternehmergesellschaft (haftungsbeschraenkt) (UG, private limited liability entrepreneurial company) https://de.wikipedia.org/wiki/Unternehmergesellschaft_(haftungsbeschr%C3%A4nkt)
UK Limited Company (Ltd) https://de.wikipedia.org/wiki/Kapitalgesellschaft_(Vereinigtes_K%C3%B6nigreich)