AG is the short form of a legal form. Indeed AG is a similar abbreviation as GmbH, which is used for limited liability companies, but in this case, it is a public limited company.
AG is mainly requested by large companies, which means that a share capital is at least € 50.000. The capital’s specialty resides in the fact that the capital may be distributed at a certain extent into shares. In case of this type of companies, forming of shares is also possible with little contribution.
Those persons, who are holders of these shares, are called shareholders. Among others, it is also a positive point that the financial risk is limited, it is easy to distribute shares, at the same time the company benefits from a high capital raising – through shares.
If such a company becomes insolvent, the creditors may ask the receivables through the share capital of the company. In this respect of responsibility, the remaining obligations are restricted to the social capital, thus the personal asset of shareholders is untouchable.
Structure of AG
In the AG the share of duties is clearly determined. The three main organs of the company: General Assembly, Management and Supervisory Board. In the AG, the general assembly is organized independently, as an operative committee, which may consist of one or more persons.
Among others, it has the capacity to assign and supervise other appointed committees, like the Supervisory Board and the Executive committee/Board of Directors. The Supervisory Board has duties as for example the preparation and presentation of annual financial report.
The General Assembly is the decision-making body in the company and includes all shareholders. Depending on the extent of the percentage of shares, the bonus of the shareholders may be expressed on the basis of voting, resolutions and by their amendment within the company.
It is not obligatory to be present at the stock exchange, thus in general only the big AGs can be found at the stock exchange.
What does the incorporation fee contain?
- Preparation of documents
- Appointment with the notary for certification
- Bank account opening
What does not the incorporation fee contain?
- The notary’s charge
- Stamp duty of the court of registration
The court registration generally registers the enterprise within 2-4 weeks.
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