How to set up Business in the Germany?
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.
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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1
Choose the right legal entity 'AG' or 'GmBH', check for name availability and define the exact object of business.
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2
Draft Articles of Association & submit to notary with other requisite documents.
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3
Open a bank account & appoint a tax advisor to complete tax registration.
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4
Submit the trade registration for to obtain the license & get your business insured.
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
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Airlines, Aviation, Defence
Aerospace is by far the most innovative and best performing industries of Germany. The two major passenger airlines and one of the world’s biggest freight and logistics carriers can be found in Germany.
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Automotive
No. 1 automotive market with 25% of all passenger cars manufactured in Germany & 20% new car registrations (2.9 mn). Eighteen of the world’s top 100 automotive suppliers are German companies.
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Advertising, Media
The revenues of this industry in the beginning of the decade were just EUR 5 bn, which then increased to EUR 40 bn in 2017, remained stable in 2018 and then increased to EUR 41 bn in 2019. Germany is Europe’s second biggest market in this category.
Visa & Immigration Rules for Germany
There are generally three kinds of residence titles subject to the length of stay and the business activity in Germany: Visa (Schengen visa & national visa), Residence Permit, & Settlement Permit.
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 employedself-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.
Visa for Incorporation
During the formation phase, only the Schengen business visa would be sufficient to carry out the business activities which will enable the person to stay for up to 90 days. If the phase exceeds 90 days, then the residence permit must be applied.
Business Opportunities in Germany
Huge business opportunities exist in Germany across various sectors. Here are some of the latest & unique business opportunities in Germany listed on CMP:
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Project RETRO
European Company that offers retrofitting technology wishes to get into a technology collaboration with an Indian company to cater to the Indian market.
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