EEP: Ltd. Ebb

CK - Washington.   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 EPP 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 corporate forms which are simple to establish and maintain and have lower capitalization requirements than German corporations. German American Law Journal :: Washington USA