Many people seek to open their own business abroad, which will allow them to provide a stable yield and a decent life. Business in Germany in 2023 is quite a promising direction for this. The country is economically attractive and successfully developing, despite the influx of refugees and the global financial crisis. It creates favorable conditions for business activities not only of its own citizens, but also of non-citizens.
Advantages of organizing and doing business in Germany
Anyone with a sufficient amount of money and promoterial skills can open a business in the country, regardless of their place of residence. At the same time, it is important that business activities benefit the region and the economy.
Before investing money, you need to think about which business will be profitable and make a plan for its development. It should be noted that entrepreneurs have the opportunity to transfer to Germany a business already existing in another country, to create a subsidiary, buy a share in a German company or open a company from scratch.
The country opens wide prospects for foreign investors:
- goods produced in Germany are recognized worldwide as a high-quality German brand;
- the government gives subsidies to enterprises and, if necessary, allocates subsidies for development;
- companies can take out a loan on preferential terms in German banks:
- the low level of taxes, in comparison with other states, allows to increase profits faster;
- there is an opportunity to conduct commercial activities not only in the domestic market, but throughout the territory of the European Union.
An entrepreneur has the right to enroll intellectual property and participate in international business projects.
In order to begin a biz in Germany and open a limited liability company, you need minimum authorized capital of EUR 25,000. At the initial stage, it is allowed to deposit half of the amount – 12,500 euros.
Types of companies in Germany
- JSC is a joint-stock company. The authorized capital of the company is converted into shares, which are distributed among the owners. The minimum amount of initial capital is 50,000 euros. Under certain conditions, which relate to the company’s income and its structure, the AS can go public, which allows the owners of the company to trade shares on the market. First of all, it is suitable for large or rapidly growing companies, when the necessary investments can be attracted by placing shares on the market.
- KGaA – is a joint stock corporation. Private promoters can also organize it, as described in the article on “Personengesellschaft”, but at the same time, shares of the company are issued, and it also has a legal entity. The statutory fund must be at least 50,000 euros. But at the same time, the owners of the company are responsible for debts not only with the company’s capital, but also with their property. The main difference from Ab is that the owners of KGaA are always its managers. Other shareholders do not have voting rights. In addition, as in ordinary companies, all limited partners have equal votes, regardless of the number of shares. This allows you to always keep control of the company, regardless of how many shares other investors have. Even if it turns out that someone on the stock exchange buys more than 509 shares of KGaA, this will not give him the right to manage the company. ideal for a family business that does not intend to sell under any circumstances. This is not the most usual form of doing biz in Germany. There are no more than a hundred such firms. But for some reason it is very beloved by the owners of German football clubs.
- GmbH – this form is the most widespread among corporations. The limited liability company is an invention of the Germans, which was born in 1892. Statutory The fund should amount to 25,000 Е, of which at least half must be deposited immediately upon opening, and the rest can be to be added in subsequent years, it is also allowed to fill the company’s statutory fund with the rights to own things, real estate, pledges and other tangible assets. Registration takes place through the district branch of the court with the participation of a notary with mandatory entry to commercial enrollment. Therefore, the procedure for opening a BTI takes one day, and then another month and a half on average we have to wait for confirmation of entry under all needed registers. It is worth registering from 450E to 10006, depending on the specific address of the company’s registration.
- UG – a relatively new form of doing biz in Germany, which is also called Mini-GmbH. This is a good way for a private entrepreneur to avoid responsibility for the firm’s debts, since the authorized capital of a given enterprise can be as small as desired, up to 1. On the other hand, the law obliges them to report about the limited liability of the company to all partners, which means that it will be more difficult to get loans and trust. It is forbidden to replenish the fund with tangible assets instead of money. It is necessary to transfer at least 2,596 from the profit to the statutory fund every year, until 25,000 is collected, after which, as a rule, the company is re-registered.
How to open your business in Germany
To open a company, you need to decide on its organizational and legal form and collect a package of the necessary documents
GmbH – an analogue of the widespread Limited Liability company (LLC) – consists of the founders and director. It is allowed to be one man.
What documents will be needed
The GmbH legal form allows you to open a business in Germany without having citizenship. To register a company with limited liability you will need detailed info about the founders, the director and yourself the enterprise. You need to prepare:
- the company’s charter, which describes the company’s activities in detail
- list of founders;
- information about shareholders’ shares;
- home address, name, date of birth of each member of society. The data must be written in Latin;
- information on the marital status of shareholders. Legislation requires that the husband or wife of the founder be present at the registration of documents.
The legal address of the company must be in German. Foreign investors usually indicate the address of a tax lawyer or firm that helps to prepare the documents. After registration, the founders have the right to receive a business visa. Its validity period varies from one month to a year.
Buying a ready-made business in Germany
Doing your business in a country of the European Union allows you to raise your social status and establish new partnerships. However, some people prefer not to create a company from scratch, but to buy ready-made businesses in Germany. Country has created all the conditions for this. It is easy to buy a company that provides certain services or produces goods, along with equipment, a customer base and employees.
Buy business in Germany is quite profitable – this is facilitated by transparent legislation and a stable economy of the country. For example, income real estate is very popular in Germany.
However, before proceeding with the execution of the agreement, it is necessary:
- Analyze the available offers.
- Study the company’s documentation, reporting, reputation among partners, and credit history.
- If pitfalls are not identified, apply to the local municipality for a purchase permit, providing a business plan for the development of the enterprise.
After receiving permission, you should draw up a sales contract, necessarily in the presence of a notary, and arrange the transfer of ownership rights. Documents are signed by two parties and notarized. After that, the purchase of the business is considered complete.
It should be noted that the purchase and sale of enterprises in Germany happens quickly no problem. And yet to exclude the possibility of a scam on the part of the seller, it is better to trust professionals when buying a business. There are many companies that provide legal support in the purchase of commercial and residential real estate. their employees select the enterprise, taking into account the wishes of the client, check the object for legality and accompany the buyer at all stages of the operation.