Company law goes digital – online formation made in Germany

According to the draft law transposing the Digital Tools Directive published today by the Federal Ministry of Justice and Consumer Protection, formations of limited liability companies (GmbH) and certain applications for registration in the commercial register can be made online in the future. The involvement of notaries guarantees legal certainty in the digital world.

“We welcome the draft law”, said the President of the Bundesnotarkammer, Prof. Dr Jens Bormann, in Berlin today. “It is an excellent example of digitalisation in the judiciary, as it combines proven rule of law principles with the advantages of modern communication.” The core elements of authentication, i.e. the reliable identification by the notary, the actual authentication negotiation as well as the drafting of an authentic act with evidentiary value, will be preserved.

The draft law will lead to the implementation of the very first notarial online procedure in Germany using video conferencing. The Bundesnotarkammer is already developing a modern and user-friendly video communication system to this end, which meets the highest security standards. Citizens will thus be able to form a limited liability company or make applications to the commercial or cooperative register regarding sole traders, companies with share capital, cooperatives and branches conveniently, easily and securely from their own desks. The proven advisory services provided by notaries will be maintained.

“Our profession actively promotes the digitalisation of preventive administration of justice”, noted President Bormann. “We therefore hope that the legislator will launch the new online procedure before the end of the legislative period.”

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