Open a Cryptocurrency Company in Germany
Investors who open a cryptocurrency company in Germany have access to a welcoming business and entrepreneurial ecosystem, beneficial tax laws for the treatment of digital currencies, and a well-developed network of professionals.
Opening a blockchain or cryptocurrency company will involve the same steps for company formation as for business in other fields. The experts at our law firm in Germany can help you start a company.
Cryptocurrencies in Germany
Germany, and most notably Berlin, is a preferred location for investors who wish to open a cryptocurrency company. Berlin-based blockchain and cryptocurrency startups are involved in various types of activities, from creating digital wallets and platforms for running blockchain-based applications, to offering transaction and exchange solutions for cryptocurrency trading.
Germany also harbors a dynamic community of people who are involved in the business. There have been several bitcoin and/or blockchain meetups throughout Germany in 2017 with a minimum of 400 members. This is a notable trend as it allows entrepreneurs and startup owners to meet other like-minded people, network, and potentially develop new business ties and ideas.
As far as the tax treatment of cryptocurrencies is concerned, Germany boasts a favorable taxation regime. Companies trading in cryptocurrencies are not treated the same way as regular trading companies for taxation purposes. this is due to the fact that bitcoin and other altcoins are not treated as usual currencies such as the Euro. A recent ruling issued by the Federal Ministry of Finance seems to further increase the favorable tax treatment, as VAT exemptions will be applicable to bitcoin transactions. Furthermore, mining transactions will not be subject to value-added tax.
One of our attorneys in Germany can give you more information about the tax treatment of cryptocurrencies and the legal framework applicable to these types of business activities.
Opening a cryptocurrency company in Germany
Investors who see Berlin as an ideal location to base their blockchain/cryptocurrency business should understand the company formation process and the requirements for running a company.
The GmbH is a preferred type of company suited to cryptocurrency startups because of the limited degree of liability it imposes on its founders. One of our lawyers in Germany can help you draw up the constitutive documents and handle the submission process with the Companies Registry.
Contact our law firm in Germany for more information about how we can assist you.
