Services · Audit & accounts for foreign companies

Audit and financial statements in Germany

Updated 7 October 2026

Small companies are exempt from audit, but every company must publish its statements in the register. We determine the company's size, prepare the accounts, arrange the audit and file the returns.

A German limited company prepares annual financial statements every year, publishes them in the Company Register and files tax returns. Whether an audit is required depends on the company's size: small companies are exempt, medium and large ones must have their statements audited. Below: the thresholds from the Commercial Code, deadlines, penalties and taxes for 2026.

Who needs an audit

A company is small if, on two consecutive balance sheet dates, it does not exceed at least two of three thresholds (section 267 of the Commercial Code). For a new company the first balance sheet date is enough.

If an audit is required but has not taken place, the annual financial statements cannot be adopted (section 316 of the Commercial Code). Group accounts are always audited.

Publication and penalties

The adopted statements must be submitted in German to the Company Register no later than 12 months after the balance sheet date (section 325 of the Commercial Code). Statements for calendar year 2025 are due by 31 December 2026. If they are not published on time, the Federal Office of Justice opens proceedings and imposes a fine of €2,500 to €25,000, about $2,900 to $28,100 (section 335). The fine can be imposed on the directors and on the company itself, and it applies even if the statements have not yet been prepared.

Taxes and filing deadlines

• Corporate income tax is 15% plus a solidarity surcharge of 5.5% of the tax. Under the 2025 investment programme law, the rate will fall by 1 percentage point a year from 2028, reaching 10% in 2032.
• Trade tax is paid to the municipality, and its rate depends on the town where the company operates.
• Return deadlines. Without a tax adviser, returns are due 7 months after the end of the year, i.e. by 31 July. If an adviser prepares the return, the deadline is extended to the end of February of the second year after the reporting year: for 2025, by the end of February 2027 (section 149 of the Fiscal Code).
• VAT. The company registers, files regular returns and, if it sells to other EU countries, recapitulative statements and Intrastat reports. For sales to consumers across the EU it can register for the one-stop shop, and customs requires an EORI number.

How we work

1. Determining size. We look at the balance sheet, revenue and headcount for two years and decide whether an audit is needed.
2. Bookkeeping and accounts under German rules, with corporate tax, trade tax and the solidarity surcharge calculated.
3. Arranging the audit if the company is medium or large, and closing the auditor's queries.
4. Publishing the statements in the Company Register within 12 months.
5. Filing returns for corporate tax, trade tax and VAT, and supporting tax audits.

Common mistakes

• Not publishing a small company's statements. The audit exemption does not exempt from publication, and the €2,500 fine comes automatically.
• Judging size on one year. The thresholds are tested on two consecutive balance sheet dates.
• Missing VAT registration when selling to other EU countries and not filing recapitulative statements.
• Filing without an adviser and losing the extension. The 31 July deadline is shorter than when working through an adviser.

German company accounts and the owner's home country

Many countries have controlled foreign company rules: if a resident owns a significant stake, the company's profit may be taxed at home, and the tax office there asks for its annual statements.

A small German company provides the statements alone; a medium or large one provides them with the auditor's report.

German company taxes are covered in our guide to taxes in Germany, and other countries in the audit and accounts for foreign companies section.

What we do

We keep the books, prepare the annual statements, arrange the audit, publish the statements in the register, file tax returns, register for VAT and the EU one-stop shop, obtain the EORI number and support tax audits. Accounts and audit are billed by the hour from $101 an hour; VAT registration costs $2,700 with us and an EORI number $1,700. The full price list is in the table below, and we estimate the workload before starting so the budget stays predictable. If you have no company yet, start with company registration in Germany.

Fees

FAQ