(i) incorporated under the laws of another European Member State;
(ii) located in foreign EU-countries;
(iii) with exclusive administrative seat in Germany; and/or
(iv) doing business exclusively in Germany. 

Until recently the case law of the ECJ as well as the German Federal Supreme Court had still rejected the legal recognition of such companies.  The change in case law resulted in a boom of English Limiteds being set up by German businessmen; media coverage on the English Limited supported this development. In comparison to a German GmbH, the English Limited is deemed to have the following advantages: fast availability, lower costs for setting up the company as well as no requirement for minimum capital. Whether additional tax advantages accrue will depend on the individual situation of the shareholder and the nature of the business conducted. 

Without the media having taken much notice, the German Federal Supreme Court has meanwhile confirmed that a company incorporated under the law of a U.S. State with (business) seat in the U.S. is recognized as legal entity in Germany (irrespective of where the management of the German business is actually located). The legal basis for this is a bilateral commercial agreement between the U.S. and Germany.

However, the German Federal Supreme Court left open the legal issue as to whether, apart from the mere act of incorporation, an additional connection with the U.S. is required (“genuine link”). In the case in question, the German Federal Supreme Court had already ruled in the affirmative on the grounds that the company had had a postal address and telephone connection with automatic diversion to Germany. In the same way companies can be incorporated in the U.S. comparatively fast and cost-efficiently. Thus, an interesting option might well be to set up a company in Germany using a U.S. corporate form. However, the pros and cons should be assessed in the light of each individual case.