Brief guide on doing business in Germany

Feb. 17, 2015 - PRLog -- Germany is Europe’s powerhouse and will always attract foreign entrepreneurs interested to do business in the Old Continent.  We would like to present to our readers four points to consider before setting up their own company in Germany.

Business setup requirements

• Keep in mind that the most frequent type of entities formed in Germany are the LLC (or GmbH) can be fully 100% foreign owned;

• LLC’s in Germany require a minimum of one director and one shareholder of any nationality;

• On the other hand, German LLCs require a formidable paid up capital of €25,000.

Tax highlights

• Germany corporate tax is high and averages around 30%, payable at a two-level system – federal level and municipal level;

• There are two separate VAT regimes in Germany. Low 7% rate, applicable for everyday items like food, medicine, etc. and high 19% VAT rate for everything else;

• Withholding tax is high and can reach up to 26%, but under the 90 Double-Tax Agreements, this number can be decreased to 5%;

• Progressive personal taxes are levied between 0 and 45%, depending on annual income;

Setup exemptions

• German LLCs do not suffer export duties with most countries in the World;

• There are no capital or exchange control applicable in Germany;

• No import duties on foreign goods are applicable in all four free trade zones;

• Consequently, companies will benefit from the federal and state interest reduced loans, available for SMEs.

Setup advantages

• Germany is part of WTO’s Agreement (TRIPS) and violators of IP’s are under heavy scrutiny;

• The Government provides four labour-related incentive programs;

• “Made in Germany” is widely recognized trademark, synonymous for quality.

About Healy Consultants

Healy Consultants provide a full range of professional services, which include the following:

• Offshore financial services

• Accounting and taxation

• Corporate finance

• Business start-up services

• Corporate banking

• Global marketing services

• Company formation

• International trading strategies

Healy Consultants are professionals who offer quality services, which perfectly match the needs of our highly sophisticated clients. We are also proud of the fact that our services are affordable and accessible by our most modest customers.

Our clients have access to an excellent range of quality products and services. We come with rich experience and a global presence, resulting in unique market awareness beneficial to your firm in more ways than one.

For more details visit:

http://www.healyconsultants.com/germany-company-registration/

For Contact:

Aidan Healy, Business Owner, Healy Consultants

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