How to open a business in Germany

The German government encourages foreign direct investment in the country's economy, so there are no divisions between citizens of the country and foreigners when starting a business. Germany attracts Russian businessmen not only by its stable economy and favorable investment climate, but also by the possibility of obtaining a residence permit in the country . Before the adoption of amendments to the law on business immigration and entrepreneurial activity of foreigners in Germany, a residence permit could be obtained by opening a company with a minimum investment of 250,000 euros. At the same time, it was necessary to become an employer for four or five Germans. Since August 2012, the German authorities have abolished these conditions, giving freedom of decision making to local competent authorities. On the one hand, the law excludes the price cap of the minimum investment amount and the obligation to create jobs. On the other hand, now open business should be of interest to the land and the region. In addition, criteria such as the feasibility of a business plan, business experience, impact on the labor market, etc. are taken into account.If earlier, investors with an amount of 250,000 euros could obtain a residence permit in Germany, now they can open their own business in the country can small and medium businessmen who will meet these criteria. At the same time, the likelihood of refusal to grant a residence permit increases due to lack of interest in opening a particular business. In the 2013 Bloomberg ranking of the best countries to do business , Germany was ranked fifth. Also, according to a study compiled by PricewaterhouseCoopers and the Institute for Urban Lands, Munich, the capital of Bavaria, was named the most attractive European city for investment. Of the German cities, Berlin and Hamburg are also in the top five. Company registration process The procedure for registering new companies in Germany is well-established and relatively simple. First you need to choose the organizational and legal form of doing business. There are several such forms in Germany, and the most common of them are GmbH (limited liability company) and AG (joint stock company). Having decided on the organizational and legal form of the company, it is necessary to obtain a legal address and telephone number in the country. This can be done by renting or buying an office. The company owner then chooses the name of the organization to register with the local chamber of commerce. When opening certain types of business, it is required to obtain a permit (license) to conduct a particular activity. The next step will be the development of the company's charter and the signing of the memorandum of association. Then you need to certify the registration of the company with a notary, this service will cost about 500-800 euros. You can open a company account and transfer the initial capital there by submitting all these documents to the bank. Then the notary enters the company into the commercial register - this process can last from two weeks to two months, and the service will cost about 200 euros. The owner of the company must obtain an extract from the commercial register from the notary. Before a company can start operating, a business owner needs to obtain an individual tax number. Small business is registered in Germany under a simplified scheme. These are, as a rule, companies whose income is less than 250,000 euros per year, and the annual profit does not exceed 25,000 euros. When opening a company, many lands require a procurator, a trustee of the company who speaks German and has German citizenship. Before opening your business in Germany and obtaining a residence permit, experts advise you to establish yourself and show the seriousness of your intentions. For example, before buying a large hotel, shopping center or apartment building worth several million euros, you can first buy an inexpensive residential building and regularly pay taxes for it. In the future, before obtaining a residence permit and buying a larger object, the state will be favored to this person. Excellent knowledge of the German language, laws and useful acquaintances will also not hurt even in such a conservative country as Germany. Areas of activity The most promising areas for starting a business in Germany are hospitality, healthcare, information and communication technologies, and public catering. HomesOverseas.ru