Also in the news...
Overcoming Logistics Challenges in International Projects
International industrial projects promise opportunity, but also bring complications. For project leaders, engineers and logistics professionals, the question isn’t whether challenges will arise, but how they’ll be managed. From variable infrastructure to customs compliance, successful delivery across borders requires foresight, flexibility and the right partners.
Switzerland: providing services and travelling for business
Guidance for UK businesses on rules for selling services to Switzerland.
UK lands trade deal with South Korea to boost jobs and exports
UK lands momentous trade deal with South Korea to boost jobs and exports
New laws bring the world of work into the 21st century
Over 15 million people across the UK are expected to benefit as the Employment Rights Act receives Royal Assent.
Brilliant Borders: Kenya's Customs goes digital
A new app will save time and money for big businesses and small traders alike, as a longstanding Kenya-UK partnership further improves cross-border trade.
Which is the best legal structure when entering the German market?
Germany is an attractive location, which can be gauged from one figure: 1,124 projects - never before have foreign companies invested so much. In 2017, the amount of net direct investments amounted to around 70 billion Euros, a record figure. According to the EY ("Europe Attractiveness Survey 2018"), there are various reasons for this: qualified specialists, a good infrastructure, a stable legal and political environment.
One topic is particularly crucial when it comes to entering the German market: the choice of the appropriate legal form. Why is that? If you choose the wrong legal form, you might have higher costs and possibly higher risks.
You should precisely analyse in advance which legal form is most suitable for your entrepreneurial activity.
The Federal Ministry of Economic Affairs and Energy lists twelve aspects which should be considered when choosing a legal form:
- Entrepreneurial independence
- Formalities
- Liability
- Taxes
- Image
- Accounting
- Duty of public disclosure
- Obligation to carry out audits
- Minimum capital
- Start-up costs
- Capital procurement
- Entry in the commercial register
The expansion into Germany can also be effected by means of a domestic subsidiary, a branch office, a permanent establishment or by a representative office.
The legal forms can be divided into three categories: partnerships, corporations and other legal forms.
A limited liability company (GmbH) is the most frequently chosen legal form. An alternative can be the ‘Unternehmensgesellschaft’ (UG) which is also referred to as "Mini-GmbH".
Berlin, Germany