Doing Business with Germany

A comprehensive guide to doing business, exporting, investing, and manufacturing in Germany.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Germany Trade & Invest

Tel: +49 30 200 0990
Web: www.gtai.de

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Central Customs Authority

Tel: +49 22 8303-26040
Email: enquiries.english@zoll.de
Web: www.zoll.de

National Chamber of Commerce

German Chamber of Commerce and Industry - DIHK

Tel: +49 30 20308-0
Email: info@dihk.de
Web: www.dihk.de

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

German Federal Ministry for Economic Affairs and Climate Action

Phone: +49 30 18 615-0
Web: www.bmwk.de

  • Type of Government: Federal parliamentary republic
  • Population: Approximately 83 million
  • GDP: Around $4 trillion USD
  • Corporate Tax Rate: About 15% (plus local trade tax and solidarity surcharge)
  • Personal Income Tax Rate: Ranges from 0% to 45%
  • Major Exports: Vehicles, machinery, chemical products
  • Major Imports: Machinery, vehicles, electronics

 

Exporting to Germany involves several steps. Here’s a comprehensive guide:

  1. Research Market Requirements

    • Understand Germany’s import regulations and standards for your product.
    • Check for any product-specific certifications needed.
  2. Find Local Partners

    • Establish relationships with local distributors or agents in Germany.
  3. Prepare Export Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure compliance with EU labeling and packaging requirements.
  4. Arrange Logistics and Shipping

    • Choose a reliable shipping company experienced with exports to Germany.
    • Ensure accurate completion of shipping documents, such as bills of lading.
  5. Customs Declaration

    • Work with a customs broker to facilitate the clearance process.
    • Pay any necessary duties and taxes.
  6. Understand Duties and Taxes

    • Familiarize yourself with Germany’s duties and VAT applicable to your goods.
  7. Distribution and Sales

    • Establish distribution channels within Germany.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

  • German Customs Authority (Zoll)
  • Germany Trade & Invest (GTAI)

Importing goods into Germany involves several key steps. Here’s a detailed guide:

  1. Verify Import Regulations

    • Ensure your goods comply with EU and German import regulations.
    • Check if your products require special permits or certifications.
  2. Classify Your Goods

    • Determine the correct tariff classification for your products using the EU Tariff Codes.
  3. Obtain Necessary Licenses

    • Apply for any required import licenses or permits.
  4. Prepare Import Documentation

    • Necessary documents include commercial invoices, packing lists, and certificates of origin.
  5. Arrange Shipping and Logistics

    • Choose a reliable logistics provider experienced with imports to Germany.
    • Ensure proper packaging and labeling of goods.
  6. Customs Declaration

    • Submit a customs declaration to German Customs (Zoll).
    • Pay any applicable duties and VAT.
  7. Customs Clearance

    • Work with a customs broker to facilitate clearance if needed.
    • Ensure compliance with all import requirements.
  8. Receive Goods

    • Coordinate with your logistics provider to receive and inspect goods upon arrival.

Key Contacts

  • German Customs Authority (Zoll)
  • Germany Trade & Invest (GTAI)

Incorporating a company in Germany involves several steps. Here’s a comprehensive guide:

  1. Choose a Company Structure

    • Decide on the type of company (e.g., GmbH, AG).
    • GmbH (Gesellschaft mit beschränkter Haftung) is the most common.
  2. Reserve a Company Name

    • Ensure the name is unique and compliant with German naming regulations.
    • Verify availability through the local Chamber of Commerce.
  3. Prepare Incorporation Documents

    • Draft the company’s articles of association.
    • Include details of shareholders and directors.
  4. Notarize Documents

    • Have the incorporation documents notarized by a German notary.
  5. Open a Bank Account

    • Deposit the required share capital into a corporate bank account.
  6. Register with the Commercial Register

    • Submit the notarized documents to the local Commercial Register (Handelsregister).
    • Pay the registration fee.
  7. Register for Taxes

    • Obtain a tax identification number from the local tax office (Finanzamt).
  8. Register for Social Security

    • If you have employees, register with the German social security system.
  9. Obtain Necessary Permits and Licenses

    • Apply for any industry-specific licenses or permits as required.

Costs

  • Notary Fees: Vary based on company type and capital.
  • Registration Fees: Approximately €150-€400 for the Commercial Register.
  • Share Capital: Minimum €25,000 for a GmbH.

Key Contacts

  • Chambers of Industry and Commerce (IHK)
  • Federal Ministry for Economic Affairs and Energy

Setting up a manufacturing plant in Germany involves several key steps. Here’s a detailed guide:

  1. Conduct Market Research

    • Analyze local demand, industry trends, and competitors.
    • Evaluate the supply chain and logistics options.
  2. Choose a Suitable Location

    • Identify industrial zones with necessary infrastructure.
    • Contact local municipalities for available sites.
  3. Understand Legal Requirements

    • Familiarize yourself with German regulations, including environmental and safety standards.
  4. Develop a Business Plan

    • Prepare a detailed proposal outlining investment, objectives, and operations.
    • Include financial projections and environmental impact assessments.
  5. Register the Business

    • Register your company with the Commercial Register (Handelsregister).
    • Obtain necessary licenses and permits for manufacturing.
  6. Secure Financing

    • Explore funding options through banks or investment agencies.
    • Consider government incentives for manufacturing.
  7. Design and Construct the Facility

    • Hire architects and contractors familiar with local regulations.
    • Ensure compliance with building codes and safety standards.
  8. Install Equipment and Machinery

    • Import necessary machinery, ensuring compliance with local regulations.
    • Coordinate with customs for smooth importation.
  9. Obtain Necessary Permits and Licenses

    • Apply for industry-specific licenses and permits.
    • Ensure compliance with health and safety regulations.
  10. Recruit and Train Staff

    • Hire local talent and provide necessary training.
    • Work with employment agencies for assistance.
  11. Begin Operations

    • Ensure all systems are in place and test the production line.
    • Implement quality control measures.

Key Contacts

  • Germany Trade & Invest (GTAI)
  • Federal Ministry for Economic Affairs and Energy

Registering a trademark in Germany involves several steps. Here’s a comprehensive guide:

  1. Conduct a Trademark Search

    • Ensure your trademark is unique and not already registered.
    • Use the database of the German Patent and Trade Mark Office (DPMA) for a preliminary search.
  2. Prepare Your Application

    • Include details such as the trademark design, classification of goods/services, and applicant information.
  3. Submit Your Application

    • File the application with the DPMA.
    • You can apply online or by mail.
  4. Pay the Application Fee

    • The basic fee is approximately €300 for online applications and €290 for paper applications.
    • Additional fees may apply for extra classes of goods/services.
  5. Examination Process

    • The DPMA reviews the application for compliance and potential conflicts.
    • Respond promptly to any objections or additional information requests.
  6. Publication and Opposition

    • If approved, the trademark is published for opposition. There is a three-month period for third parties to challenge the registration.
  7. Registration and Certification

    • If no oppositions arise, the trademark is registered. You will receive a certificate of registration.
  8. Maintain and Renew the Trademark

    • Trademarks are valid for 10 years and can be renewed. Submit renewal applications before expiry to maintain protection.

Key Contacts

  • German Patent and Trade Mark Office (DPMA)

Resolving commercial disputes in Germany involves several key steps. Here’s a guide on the process:

  1. Attempt Negotiation

    • Begin by negotiating directly with the other party to find an amicable solution.
  2. Mediation

    • Engage a mediator to facilitate discussions.
    • Mediation is often quicker and less formal than court proceedings.
  3. Arbitration

    • Consider arbitration for a private and binding resolution.
    • Provides a structured approach with enforceable decisions.
  4. Seek Legal Advice

    • Consult with a lawyer specializing in commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, file a lawsuit in the appropriate commercial court.
    • Prepare necessary documentation and evidence.
  6. Court Proceedings

    • Attend hearings and present your case.
    • Follow the legal procedures as guided by your attorney.
  7. Judgment and Enforcement

    • If a judgment is made, ensure its enforcement through legal channels.

Costs

  • Mediation and Arbitration Fees: Vary depending on the service provider.
  • Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
  • Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

  • German Institution of Arbitration (DIS)
  • Federal Ministry of Justice

When considering doing business in Germany, it’s important to understand various influential factors. Here’s an overview:

Social and Cultural Factors

  • Language and Communication
    • German is the official language; English is commonly used in business.
    • Building relationships and understanding cultural norms are crucial.
  • Business Etiquette
    • Formal greetings and punctuality are valued.
    • Hierarchical structures are often respected in decision-making processes.

Political Environment

  • Government Structure
    • Germany is a federal parliamentary republic.
    • The political environment is stable, with a strong emphasis on economic development.
  • Regulatory Environment
    • Transparent regulations aimed at supporting business growth.
    • Strong emphasis on compliance with EU standards.

Economic and Foreign Exchange Factors

  • Currency
    • The official currency is the Euro (EUR).
    • Exchange rates with other currencies can fluctuate, so monitoring is important.
  • Investment Climate
    • Opportunities in automotive, engineering, and technology sectors.
    • Government incentives for foreign investors, especially in innovation-driven industries.

Rule of Law

  • Legal System
    • Based on civil law; known for its reliability and transparency.
    • Strong protection of property rights and contracts.
  • Intellectual Property
    • Robust IP laws with effective enforcement mechanisms.

Infrastructure

  • Transportation and Logistics
    • Excellent infrastructure with well-developed road, rail, and air networks.
    • Advanced telecommunications and internet services.

Relevant URLs

  • Germany Trade & Invest (GTAI)
  • Federal Ministry for Economic Affairs and Energy

Our Members Include Leading Organizations in Germany

Ask our Experts on Doing Business in/with Germany

If you’re looking to do business or invest in Germany, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.