Germany Reforms Corporate Law: New Opportunities for Start-Ups and Small Businesses

In September 2025, the German federal government approved a draft law designed to improve conditions for start-ups in Germany and small businesses. The goal of the reform is to make access to capital easier and reduce bureaucratic hurdles for founders and entrepreneurs.

A key element of the reform is the reduction of the minimum nominal value of shares – from €1 to just €0.01. This step is seen as a milestone in the reform of corporate law and is expected to make Germany more competitive internationally. Experts believe that this measure will make it easier for young companies to attract investors and stimulate the venture capital market.

The draft law also introduces tax relief for businesses: simplified reporting and registration requirements, less bureaucracy when setting up a company, and additional incentives for business angels and institutional investors.

Other sectors will also benefit: the reduced VAT rate for restaurants is to be extended to support the hospitality industry, and the commuter allowance will be increased to relieve employees with long commutes.

If the Bundestag passes the law as planned, the new rules could take effect as early as the beginning of 2026 – a good opportunity for entrepreneurs to launch new ventures or approach potential investors.