Germany Market Entry Strategy

How to set up Business in the Germany?

Anyone can establish a business in Germany irrespective of the nationality. There are no barriers for the foreign investors to establish a business in Germany. But the local trade office registration requires that the local representative of the business should be in Germany. This could be done by setting up a Subsidiary (a new legal entity) or to open a Branch Office (not a new entity but an extension of head office). Following are the key steps that a foreign national need to go through while establishing a subsidiary / new entity in Germany:

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  Choose the right legal entity 'AG' or 'GmBH'

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  Check for name availability & define the exact object of business

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  Draft Articles of Association & submit to notary with other requisite documents

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  Open a bank account & appoint a tax advisor to complete tax registration

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  Submit the trade registration for to obtain the license & get your business insured

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Germany is among the world’s largest and most stable trading economies, offering a secure, highly developed political and economic framework. Its strong legal protections enable investors to quickly enforce their rights and protect their industrial and intellectual property. There are a variety of options for foreign nationals to enter the German market including setting up their own company or collaborating with a local partner. Which strategy would be suitable for you would depend upon the on the specific sector and business objectives.

Here are a few tips on planning, legal issues, hiring, immigration, and taxes & an overview of Germany market that would help you to build a expansion strategy for your business.

Top 3 Sectors for Investment in Germany

Industrie 4.0 means intelligent networking of machines and the industry processes using information technology. Germany is no doubt the world’s leading Industrie 4.0 nation and has positioned itself as a strong international brand. Here are some main sectors that have been identified as potential sectors for foreign companies expanding a business in Germany

DOWNLOAD THE GERMANY MARKET ENTRY REPORT FOR FREE

Germany is a very attractive market for investors and new business owners alike. The large, diversified economy of Germany is supported by a well-developed, reliable infrastructure, a highly-skilled workforce, a positive social climate, a stable legal environment, and a long track record of world-class research and development. Download the German Market Entry report to learn more about this region’s business environment, entity types, taxes, incorporation requirements, and more.

Visa and Immigration

There are generally three kinds of residence titles subject to the length of stay and the business activity in Germany.

a) Visa (Schengen visa & national visa)
b) Residence Permit
c) Settlement Permit

 

 

Visa for Incorporation - The visa allows the holder to stay for a short-term period of up to 90 days in Germany. A residence or settlement visa is for the longer stays which includes more than 90 days or to work for an employee or on self employed basis. Residence visa is not required for setting up of a business entity in Germany. However, it will be required in case the foreign nationals run the business on-site.

 

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