By Marco BösingWhat Is a Trading GmbH?
A Trading GmbH is a German limited liability company (Gesellschaft mit beschränkter Haftung) established specifically for the active trading of securities, futures, and other financial instruments. The primary motivation is tax optimization: while private individuals pay the flat capital gains tax (Abgeltungssteuer) of approximately 26.375% on trading profits, profits within a GmbH are subject to corporate tax and trade tax — roughly 30% combined, though significantly lower effective rates are possible for certain types of income.
Additional advantages of a GmbH include the ability to deduct business expenses such as software, data feeds, and hardware, as well as the use of retained earnings and investment deduction allowances. For active futures and options traders with high turnover, the GmbH structure can be a tax-efficient option.
Setting up a Trading GmbH requires a minimum share capital of 25,000 euros, ongoing bookkeeping obligations, and collaboration with a tax advisor. It typically becomes worthwhile only above a certain annual trading volume and profit level.
Read the full article: Starting a Trading Company in Germany