As I understand a Verein is essentially the same a a GmBH but it must be for non profit purposes. Therefore it can employ people who earn a salary but no person or group of people can take the profit if there is any.

This implies that it requires greater state control, but how does this work? If I setup a Verein and am the founder and owner would it not put me in a position to abuse it's not for profit status and e.g. employ people to do jobs that personally benefit me? I think somebody mentioned to me a while back that it is possible to loose control of a Verein, how would this happen? What would the process be?

The rules are very liberal and there is no more state control over a Verein than over a GmbH. If you want to "abuse" it in the way you describe I see no real problem to do so as long as the salaries or fees paid to the people are at market level. What would the abuse be do you mean?

To set up a Verein you need min 3 people. As long as they are people you fully trust, there is no risk of you loosing the control. You don't own the Verein however. That is the main difference to a GmbH.

If you have specific questions let me know and I can help you out. I have experience in both GmbH and Verein and in cross-charges between the two.

thanks Tilia.

My question is really if somebody else (3 other people) own a Verein they can basically do with it what they want, and there is no chance of me or anybody else influencing it?

Well, they don't actually own it but yes, that is correct. Here is an example of statutes for a Verein. If you look at paragraf 4 you can basically write the statutes in a way that it restricts the control only to those that you want to.