Handelsgesetzbuch (HGB)

The Handelsgesetzbuch (HGB) is Germany’s commercial code that regulates the legal framework for businesses and commercial transactions. It sets out rules for company formation, accounting, financial reporting, and commercial practices to ensure transparency and fairness in trade. The HGB distinguishes between different types of companies, like partnerships and corporations, and guides how they conduct business, keep records, and report finances. Its goal is to provide a clear legal structure that supports reliable commerce and protects the interests of businesses, investors, and creditors within the German trading system.