Yes you are correct for company law, but not tax law, see the §§ 1, 2 of the german corporate income tax law. ("KStG" http://www.gesetze-im-internet.de/kstg_1977/BJNR025990976.ht...). Unfortunately there is no official english version, but the tax code is formulated in such a convoluted way that GoogleTranslate can't make it much worse ;)