Doing business

Germany

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Gesellschaft mit beschrankter Haftung (GmbH) is a limited liability company EUR 25,000 minimum with at least half fully paid up at the creation of the company.	No minimum Liability is limited to the amount of capital contributed.
Aktiengesellschaft (AG) is a public limited company . EUR 50,000 minimum with a quarter fully paid up at the creation of the company.	No minimum Liability is limited to the amount of capital contributed.
Offene Handelsgesellschaft (OHG) is a general partnership. No minimum capital.	Minimum: 2 Their liability is joint and indefinite on the obligations and debts of the company.
Kommanditgesellschat (KG) is a limited joint-stock partnership. EUR 500	There are two types of partners, the active partners and the silent partners. The liability of the active partners is personal and indefinite. The liability of the silent partners is limited to the amount of capital contributed.

Business setup procedures

Setting up a company	Germany	OECD
Procedures (number)	9.0	5.6
Time (days)	15.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Germany.
Judicial register of the federal states
Company Register
The competent organization: The Common register portal of the German federal states.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	24,435	37,627	46,134
FDI stock (millions USD)	666,036.7	676,714.9	674,217.1
Performance Index*, ranking on 141 economies	127	113	-
Potential Index**, ranking on 141 economies	3	-	-
Number of Greenfield investments***	724	470	-
FDI inwards (in % of GFCF****)	3.5	1.4	-
FDI stock (in % of GDP)	18.2	21.0	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Germany

Strong points

Germany's strong points are:
- A strategic location at the center of Europe;
- The biggest population of the European Union;
- Advanced technology and expertise;
- A highly qualified work force;
- Competitive taxation.

Weak points

Public finances are stucturally highly in deficit. The eastern part of the country is struggling to catch up in many fields. The ageing population weighs heavily on growth. The unemployment rate poses a real challenge for the development of the country and its future influence.

Government measures to motivate or restrict FDI

The Germany government is implementing mesures aimed at encouraging investments in the country:

- Financing by the European Union and/or by German federal entities;
- Aid aimed especially at the initial investment phase but also at the operational phase of the project.

Bilateral investment conventions signed by Germany

Germany has signed many bilateral agreements.
To see the list of countries, click here.
To see the conventions, click here.

Procedures relative to foreign investment

Freedom of establishment: Yes. The German government and industry actively encourage foreign investment in Germany, and German laws provides foreign investors national treatment.
Acquisition of holdings: Foreign investors may have a majority holding in the capital of a local company. The Foreign Economic Law contains restrictions on private direct investment for reasons of foreign policy, foreign exchange, national security, public order. Restrictions also concern armaments and cryptographic equipment.
Obligation to declare: The agency for the promotion of foreign investment in the country gives information about the authorizations necessary for setting up.
Competent organization for the declaration: Federal Office of Economics and Export Control
Requests for specific authorizations: Investments have to be governed by the policies and the procedures which are specific to the sector. For more information refer to the BAFA.

Finding assistance for further information

Investment aid agency: Invest in Germany
Other useful resources