Karl Rapp and Julius Auspitzer founded Karl Rapp Motorenwerke GmbH with a capital stock of RM 200.000 the on 28 October 1913 on the site of Flugwerke Deutschland (after the company went into liquidation).
The decision by the Prussian Army Administration to order 600 units of the innovative high-altitude aero-engine (project name "BBE"), originated by the designer Max Friz, entails reorganizing the legal structure of the company.