Tue, Oct. 25, 2005

EEP: Ltd. Ebb

.   The German hoopla over the English corporate form of Limited and its use in Germany appears to ebb. Interest in the form is waning, according to Flensburg tax and insolvency specialists Ehler Ermer & Partner.

The October 2005 issue of the EEP Journal reports a recognition in German corporate minds that meeting mandatory English and German balance sheet requirements and annual notifications to two corporate registers increases costs and efforts substantially while the benefit of minimal capitalization is marginal.

EEP does not advocate an end to the use of the Ltd. in Germany but recommends proper decision-making and planning before implementing such a concept. German business may also want to look at the benefits of American corporations which are simple to establish and maintain and offer very low capitalization requirements.


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