Costs of Annual Accounts for UG in 2025
Entrepreneurs and businesspeople must understand the cost of UG annual accounts in Germany to avoid unpleasant surprises.
The UG has become a very popular structure for individuals who want to set up a company in Germany, especially for small businesses and startups. However, preparing annual financial statements can be a complex and expensive process if you are not prepared for either the work or the costs of annual accounts for UG. Before reading on, you may want to learn more about the running costs of a company in Germany. This article provides you with an overview of the factors determining UG account costs in Germany and learn some options to save on your accounting expenses.
Who Can Prepare the Financial Statements?
One of the first questions that UG owners may have is who can prepare the financial statements. According to German law, accounting offices or tax agents cannot prepare annual financial statements. However, every company is allowed to prepare its own yearly accounts. External tax advisors are usually the go-to option for UGs, but they can be expensive. Tax advisors can charge a fee starting from 700 EUR, even if the UG does not yet have any income.
Cost Factors for UG Accounts in Germany
Preparing an annual financial statement for a UG company in Germany is a time-consuming process that can quickly become expensive, especially for active UGs. The costs can depend on various factors, including the balance sheet total of the UG, total income of the company, number of invoices, quality of accounting, queries, special tax arrangements that must be taken into account, and the hourly rate of the tax advisor.
On average, an active UG with small business activity and a turnover of less than 500,000 EUR can expect to pay approximately 1,500-3,000 EUR. However, the costs can go much higher if the UG has a lot of invoices (e.g. online shops) or needs a complex financial statement.
Preparing Your Own Annual Financial Statements
Some UG owners may prefer to prepare their own annual financial statements in an effort to reduce the cost of UG accounts in Germany. However, we would not advise this unless you are an accountant or already have significant accounting knowledge. If you decide to prepare your own statements, you will need an ELSTER account, an account with the publication platform of the Federal Gazette, and tax software that can transmit an e-balance sheet. Cloud-based accounting tools usually cannot do this, so you must use tools like Lexware or DATEV.
Minimum Components of the Annual Financial Statement
Regardless of who prepares the financial statements, you must include all of the required minimum components. These include the corporate tax return (in German: Körperschaftssteuererklärung, prepared and transmitted in ELSTER), trade tax return (in German: Gewerbesteuererklärung, prepared and transmitted in ELSTER), value-added tax or VAT return (in German: Umsatzsteuererklärung, prepared and transmitted in ELSTER), e-balance sheet as of the balance sheet date (prepared and transmitted in e-balance sheet-capable tax software). You must also publish or file the balance sheet in the company register via the publication platform, depending on the size class of the company.
Tips for Saving on UG Account Costs in Germany
While the costs of UG accounts in Germany can be high, there are ways to save on accounting expenses. One way is to use accounting software to automate many accounting tasks and provide real-time financial insights. In addition, many cloud-based accounting tools offer affordable plans that can help reduce the need for expensive external tax advisors.
Another way to save on UG account costs in Germany is to maintain accurate and up-to-date financial records throughout the year. This can help reduce the time and effort needed to prepare the annual financial statements and minimise the chances of errors and discrepancies.
Bottom Line
The cost of UG accounts in Germany can be a significant expense for small businesses and startups. However, by understanding the factors that determine the costs of annual accounts for UG and following best practices for accounting, entrepreneurs and businesspeople can reduce these expenses and stay on top of their finances. Whether you choose to hire an external tax advisor or prepare the financial statements yourself, it is important that you understand the cost of UG accounts in Germany and that you recognise the strict requirements when filing your UG annual accounts, and that you take appropriate steps to comply with the minimum requirements to file them in Germany. We will be glad to support our existing clients in preparing these documents, and we can gladly recommend a tax advisor who can help. Once you become a client, you can always contact us for more information and to ensure that you make the best choices on running your UG or GmbH.