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What does "Geschäftskonto" mean in English?

Banking, Business • 
Last updated on 15 March 2024

Geschäftskonto translates to “business account” in English. It is a type of bank account in Germany designed specifically for business transactions.

What is “Geschäftskonto”?

A Geschäftskonto is a business bank account used by companies, freelancers, and self-employed individuals in Germany to manage their business finances separately from their personal funds. This account is essential for handling day-to-day business transactions, receiving payments from clients, and paying suppliers. Depending on the legal form of the company, having a Geschäftskonto may be mandatory, especially for corporations like GmbH or UG[1][5].

More information about “Geschäftskonto”

Opening a Geschäftskonto can be done at a branch bank or a direct bank, with the process varying based on the business’s legal form. For example, GmbHs must deposit a minimum share capital into the Geschäftskonto during formation[2]. The account helps in keeping a clear overview of business finances and is crucial for tax purposes, as it allows for the separation of company and personal transactions[1].

Here are some additional terms that are related to Geschäftskonto:

  • Stammkapital: The share capital that must be paid into a Geschäftskonto when forming a GmbH[2].
  • Handelsregister: The commercial register where companies like GmbHs must be entered, which requires proof of depositing the Stammkapital into a Geschäftskonto[5].
  • GmbH: A limited liability company that requires a Geschäftskonto for its financial transactions[2].
  • UG (haftungsbeschränkt): A mini-GmbH or entrepreneurial company that also requires a Geschäftskonto, with a lower minimum share capital compared to a GmbH[5].

Having a Geschäftskonto is a fundamental aspect of running a business in Germany, ensuring financial transactions are handled professionally and in compliance with German business regulations.

Sources

[1] https://www.firma.de/en/company-formation/opening-a-business-bank-account-comparison-and-faqs/ [2] https://www.firma.de/en/company-formation/how-to-set-up-a-gmbh-the-definitive-guide-to-starting-a-limited-liability-company-in-germany/ [3] https://allaboutberlin.com/guides/kontist-review [4] https://blog.holvi.com/expat-business-account-mastercard [5] https://www.firma.de/en/company-formation/geschaftskonto-the-business-bank-account-for-gmbhs-and-ugs-in-germany/ [6] https://companyingermany.de/gmbh-account/ [7] https://www.sparkasse.at/erstebank-en/business-customers/products-business-customers/accounts-cards/business-account/girokonten-kommerz [8] https://www.lukb.ch/documents/38421/352375/LUKB-Factsheet-Geschaeftskonto-EN.pdf/3d7464d5-5160-37b3-121f-8f15507ac492?t=1603269456203 [9] https://www.deel.com/blog/opening-bank-account-in-germany [10] https://support.kraken.com/hc/articles/115004862007-Business-account-with-Pro-limits [11] https://elevatex.de/blog/freelancer/business-accounts-for-freelancers/ [12] https://www.reddit.com/r/germany/comments/1984n2w/opening_a_gesch%C3%A4ftskonto/ [13] https://n26.com/en-eu/business-bank-account [14] https://www.mygermanfinances.de/german-business-bank-accounts/ [15] https://www.niural.com/blog/opening-a-bank-account-in-germany [16] https://www.arlingtoncu.org/de/business-certificates/ [17] https://www.westernalliancebancorporation.com/torrey-pines-bank/commercial-corporate/business-checking-and-savings/business-checking [18] https://www.sparkasse.at/erstebank-en/business-customers/products-business-customers/accounts-cards/business-account/digitale-kontoeroeffnung [19] https://www.b2bpay.co/how-open-bank-account-germany [20] https://allaboutberlin.com/guides/start-a-business-in-germany