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REGISTRATION OF A BUSINESS (FIRM) IN GERMANY
REGISTRATION OF A BUSINESS (FIRM) IN GERMANY
Prykhodko Andrii
What you need to know about “Business Immigration” to Germany.
There are several ways to immigrate to Germany, among which a special place has “Business Immigration”. Since 2012, this has been made possible by changes in German law. Popular names today: “Business Relocation” or “Business Immigration” are actually a simple registration of a Limited Liability Company or a Private Individual abroad. It is important to understand why, among other EU countries, Germany is the best place to start a profitable business.
Benefits of registering a business in Germany?
- Doing business in the world’s leading country: without corruption and raiding.
- Geographical location of the country. Germany shares borders with 9 European countries (Denmark, the Netherlands, Belgium, Luxembourg, France, Switzerland, Austria, the Czech Republic and Poland).
- State subsidies and grants for the development of underdeveloped regions.
- Long-term loans.
- Opportunity to open affiliates outside Germany.
- High living standard of the population, which affects its payment ability.
Same as in Ukraine, business in Germany can be opened by a Private Entrepreneur (Einzelunternehmen), an analogue of the Ukrainian Private Individual, and a legal entity. The most popular organizational and legal form of Germany in 2022 – Gesellschaft mit beschränkter Haftung – Limited Liability Company (LLC). The vast majority of companies in Germany are small and have up to 10 employees.
Germany is one of the G7 countries, which contributes to the development of international relations. According to the ranking of the best countries in 2021 by the magazine “U.S. News »Germany ranks 3rd with a score of 9.8 out of 10 points. The results were summarized in ten subcategories with different weights and include the areas of politics, economics and culture.
Starting from August 1, 2012, the procedure for starting a business in Germany has become much simpler: limits on jobs and the amount of investment have disappeared. Also in Germany, you can open a Limited Liability Company (UG) with a minimum share capital of 1 euro. Taxes for business in Germany depend on the size of the business and its turnover. Conditional benchmark: corporate tax – 15%, capital gains tax (dividends) – 25%; VAT – 19%.
CONCLUSION. Registering a business in Germany gives you the following benefits
- Doing business in the G7 country, which opens the market for cooperation not only with the countries of the European Union, but also with the whole world.
- Opportunity to open a business with a share capital of 1 euro.
- Government grants and subsidies.
- Protection of business (bank deposits, real estate).
- High level of solvency of the population.
How to register a company in Germany, what you need to know in order to start a business in Germany, what form of business is best, what not to do during business immigration to Germany – these and other questions experts Prikhodko & Partners provide clear and specific answers. Our company has been successfully supporting international companies for 5 years, including in Germany.
At first glance starting a business in Germany may seem like a complicated and time-consuming process, as it is the EU’s economic leader. However, in fact, entry into Germany is much more accessible for foreign businessmen than in other developed countries.
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