BUSINESS INCORPORATION GERMANY

Timeframe

To receive a signature from a German notary might eventually go very quickly, however, German banks as well as German authorities will most likely challenge foreign companies with additional questions and can seriously block the incorporation process. Please note that every German legal entity also requires a German bank account.

• Please consider topics as follows
• Business Plan, including financial forecast
• Money laundry prevention
• Background checks of (foreign) shareholder and managing directors
• Proven track record that the company has historically already engaged into serious business relationships with German and European partners
• etc.

For this reason, the timeframe of a successful incorporation process is subject to the individual business objectives as well as to the complexity of your underlaying business model.

To provide a rough guideline, approximately four to six working weeks have to be taken into consideration to have a new legal entity successfully incorporated in Germany. Please note that the actual timeframe is subject to the level of engagement between Consultinghouse and the expanding company.

Expanding a business to another market is a serious undertaking. For this reason, foreign companies need to take into consideration that the incorporation of a business in Germany represents an initial investment, however, the actual cost drivers to successfully develop business in Germany are mainly related to ongoing front-, as well as back-office activities.

Please find additional functions, that have to be considered pre-, as well as post the incorporation process of your German legal entity, as follows:

Front-office activities:

• Marketing & PR
• Business Development & Lead Generation
• Pre Sales Engineering
• Customer Success Management

Back-office activities:

• Monthly accounting & financial reporting
• Monthly payroll
• Monthly compliance
• Communications & collaboration with German authorities and institutes
• Tax & legal cases*
• Year-end accounting*