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Articles of Organization
I need Articles of Organization for a new limited liability company (GmbH) in Germany, detailing the company's name, registered office, purpose, share capital, and management structure, with provisions for two managing directors and a supervisory board.
What is an Articles of Organization?
Articles of Organization (Gesellschaftsvertrag) form the legal foundation of a German GmbH or UG company. This crucial document outlines how your business will operate, including its name, registered office, corporate purpose, and initial share capital - similar to a company's constitution.
Under German law, these articles must be notarized and filed with the commercial register (Handelsregister) before your company can legally exist. They spell out key details like shareholder rights, management structure, and profit distribution rules. While you can modify them later, changes also require notarization and registration with German authorities.
When should you use an Articles of Organization?
You need Articles of Organization when starting any limited liability company (GmbH or UG) in Germany. This isn't optional - it's a fundamental requirement before your company can legally begin operations. Most entrepreneurs prepare these articles during their initial business planning phase, working with a German notary to ensure all requirements are met.
The timing matters because you can't register your company, open business bank accounts, or sign contracts until these articles are properly filed. Many business founders draft them 2-3 months before their planned company launch, allowing time for notarization, registration, and any necessary revisions required by German authorities.
What are the different types of Articles of Organization?
- Business Articles Of Incorporation: Standard format for commercial GmbHs, covering basic corporate structure and operations
- Articles Of Organisation: Simplified version often used for UG (mini-GmbH) startups with minimal capital
- Articles Of Incorporation Nonprofit: Specialized version for non-profit organizations (gemeinn眉tzige GmbH), including charitable purpose clauses
- Limited Liability Company Articles Of Organization: Comprehensive version for larger GmbHs with complex ownership structures
Who should typically use an Articles of Organization?
- Company Founders: Draft and sign the Articles of Organization when establishing their GmbH or UG, defining their ownership stakes and roles
- German Notaries: Review, certify, and authenticate the articles, ensuring compliance with German corporate law
- Managing Directors: Execute the articles' provisions in daily operations and ensure ongoing compliance
- Commercial Register: Reviews and maintains official records of the articles for public access
- Legal Counsel: Advises on content and structure, especially for complex ownership arrangements or special provisions
- Shareholders: Must follow the rules set in the articles regarding voting rights, profit distribution, and share transfers
How do you write an Articles of Organization?
- Company Details: Decide on company name, registered address, and business purpose - these must be specific and compliant with German naming laws
- Capital Structure: Determine initial share capital (minimum 鈧25,000 for GmbH, 鈧1 for UG) and shareholder contributions
- Management Setup: Define roles of managing directors (Gesch盲ftsf眉hrer) and their signing authority
- Shareholder Rights: Outline voting rights, profit distribution, and share transfer restrictions
- Documentation: Gather identification documents for all shareholders and proof of capital deposits
- Notary Appointment: Schedule a meeting with a German notary who will authenticate the final document
What should be included in an Articles of Organization?
- Company Name: Full legal name and business form designation (GmbH/UG)
- Registered Office: Official business address within Germany
- Corporate Purpose: Detailed description of business activities and objectives
- Share Capital: Amount and distribution of initial capital contributions
- Management Structure: Powers and duties of managing directors (Gesch盲ftsf眉hrer)
- Shareholder Provisions: Voting rights, profit sharing, and transfer restrictions
- General Meetings: Rules for conducting shareholder assemblies
- Dissolution Clause: Procedures for company liquidation or termination
- Governing Law: Statement confirming German law application
What's the difference between an Articles of Organization and an Articles of Association?
Articles of Organization are often confused with Articles of Association in German business law, but they serve distinct purposes in company formation and governance.
- Legal Foundation: Articles of Organization establish the company's existence and basic structure with the German commercial register, while Articles of Association detail internal operations and relationships between shareholders
- Timing and Modification: Articles of Organization are filed once during company formation, whereas Articles of Association can be modified more frequently as business needs change
- Content Scope: Articles of Organization contain essential formation details like name, capital, and purpose, while Articles of Association cover detailed operational rules, shareholder rights, and management procedures
- Legal Requirements: Both need notarization, but Articles of Organization have stricter filing requirements with the Handelsregister and must meet specific GmbH/UG law provisions
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