MoMiG

MoMiG, the Act for the Modernization of GmbH Law and the Prevention of Misuse, revolutionized German GmbH law in 2008 and remains crucial for every business formation today. A core element is the introduction of the Entrepreneurial Company (limited liability), abbreviated as UG, often referred to as a Mini-GmbH, which can be established with a share capital of just €1, allowing for a quick and cost-effective entry into entrepreneurship. Through the optional model protocol, MoMiG significantly shortens the formation process and reduces notary and registry costs. Simultaneously, the reform law strengthens creditor protection: An up-to-date shareholder list must be filed with the commercial register, share transfers require mandatory notarial certification, and trading in worthless GmbH 'shelf companies' is hindered. MoMiG also eliminated the special form of the publicly traded GmbH and harmonized liability standards. Anyone wishing to establish a GmbH or UG with limited liability in a legally secure manner should thoroughly understand and consistently implement the MoMiG regulations.