Doing Business in Germany

About Germany – Doing Business in Germany

An understanding of the character of the German consumer is essential to maximize your firm’s chances of success in the German market. German companies and consumers value the quality of their products above everything else – except maybe punctuality. What you should also keep in mind while doing business in Germany is to plan out everything in advance, from the meeting agenda to the time when you are going to call your business partner in Germany.

In addition, you need to present buyers in this country with conclusive, independent evidence that your product or service will be of benefit. But rest assured that putting in the extra effort will be worth it in the long run for doing your business in Germany. Once you have convinced a German client that you are a reliable business partner, they are exceptionally loyal.

If you’d like more tips on manoeuvring through the German business world, we have summarized them for you here: Business Etiquette

Doing Business in Germany – Why Is This a Good Idea?
Whether you’re considering approaching the market from the UK, the US or another country, don’t be reluctant! Businesses that export are statistically more successful and have enhanced options for future growth. Entering the German market could especially benefit your business, since Germany is widely deemed Europe’s economic powerhouse. So, it is a very good idea to start doing your business in Germany!

Doing Business in Germany – Overcome the Obstacles!
Expanding your business to another country may feel overwhelming and it may be frightening to dive into unknown waters. And starting a business in Germany can be indeed a real challenge for foreigners.

But this shouldn’t hold you back from internationalizing and doing your business in Germany! We are specified to help foreign companies from any country in the world to enter the German market. And we will be at your side to help you overcome every obstacle and navigate you through the bureaucratic hurdles.

One of the cultural challenges often experienced by foreign firms is the “buy local” attitude found among German companies and consumers. However, in a world that is becoming more and more globalized, even the often-conservative Germans can no longer resist the offer of foreign products and services.

One Touchpoint for All Your Needs When You Start Doing Your Business in Germany
For all who ask themselves how to start a business in Germany we offer a broad range of services for our clients, from market research to the development of complete business plans. Whether you’re still wondering what the best business branch to start in Germany is, or if you’re already specialized, we will support you. Of course, this is also the case if you want to start an online business in Germany.

For all areas that are outside our scope of expertise we have long-term partnerships e.g., with law firms, financial advisors, tax advisors, etc. We will coordinate every aspect of your market entry for you and act as your main touchpoint.

In case you are still hesitant about expanding your business to Germany, we have another 14 good reasons for you to enter the German market!

Reach out for more information about Germany. We are happy to assist.

Why to Start a Business in Germany - 14 Reasons for Expanding

The Engine of Europe’s Economy

With a gross domestic product of more than 4.029 trillion USD, Germany is a global economic driving force. Germany’s economy is also expected to grow by about 2% in the next two years, with future growth forecast between 0.7% and 1.75% over the next 20 to 50 years. The consistently strong economic performance offers substantial long-term growth potential for businesses from countries such as the UK and the US. These numbers alone are reason enough why you should consider starting your business in Germany.

Major Domestic Market

Germany is the European Union’s most populous country and has a huge domestic market. With nearly 83 million inhabitants, Germany’s consumer market presents major opportunities for foreign companies from all sectors. This offers a wide range of possibilities for all kinds of firms that want to start doing their business in Germany.

If you’d like more information about Germany’s market and economy, we provide an overview for you here: German Economy

Lucrative Market for SME – Medium and Small Businesses in Germany

Germany is the home of the small and medium-sized enterprise (SME). While it is known for its industrial giants including BMW and Siemens, approximately 85% of all German companies are SMEs. This means that more than 3.6 million companies provide more than 60% of all jobs in Germany. On this basis, foreign businesses looking to enter the market can be assured that size is no barrier to success, as the German market is particularly supportive of SMEs.

Strong Support for SMEs

85% of all German businesses are SMEs. Many of these firms are highly specialized and often lead the market in their field. As the home of the SME, Germany is particularly supportive of smaller businesses, proving that size is no barrier to success in this country. So, if you own a medium or small business, don’t hesitate to expand in Germany!

High productivity

Germany is one of Europe’s most cost-effective production locations and has one of the highest productivity rates in the world. This is increasing year on year – with productivity rising by more than 30% in the past 5 years. This is thanks to the popular German work culture.

Skilled labour force

81% of the German population have been trained to university entrance level or hold a recognized vocational qualification. The “dual system” of vocational education, which combines workplace training with academic training produces highly skilled graduates who match the needs of the industry. This means you can count on reliable employees when doing business in Germany.

Investor friendly market

Germany’s investor friendly social-market economy promotes stable labour relations and a contented, motivated workforce. To date, 22,000 foreign enterprises have established businesses in Germany and now employ more than 2.7 million people! As mentioned before, these numbers alone are a good reason for starting a business in Germany.

If you’d like to find out more about investing in Germany, we have gathered the most important points for you here: Invest in Germany

Strong Ethic of the German Work Culture

Germany has an extremely well-qualified and conscientious workforce. The demand for professionals is met by 383 institutions of higher education and from an early age, German citizens are channelled towards careers that allow them to reach their maximum potential. So, it’s no wonder that the German work culture is praised worldwide!

Highly developed infrastructure

Germany’s well-connected network of roads, railways and international airports is a major asset. In general, Germany has a highly sophisticated infrastructure and boasts a state-of-the-art telecommunications network to service business quickly and reliably. Transporting goods fast and with efficiency makes business in Germany highly convenient for foreigners.

“Made in Germany”

This world-famous trademark is synonymous with the highest quality standards. Germany is also the world’s second largest exporter and whilst it’s famous for its automobile, mechanical engineering and electrical engineering success; futuristic industries such as eco energy production and nanotechnology are growing in importance. So even if your firm is focused on new industry branches, you can be sure there is already a place for you to start doing your business in Germany.

Friendly Tax Policies

The Federal Government has introduced a raft of reforms to improve the general tax framework and keep labour costs down. This combined with the significant reduction in corporate tax levels is attracting increasing numbers of investors and securing a constant stream of new business.

In case you’re still overwhelmed by the German tax system, don’t despair! As already mentioned above, we cooperate with finance and tax experts that you can consult.

The law is on your side

Ideally placed in Europe as a hub for goods and services, inclusion in the EU has benefited Germany enormously. Germany shares borders with every major economy in central Europe, providing instant access to both established markets in Western Europe and growing markets in central and eastern Europe. In short: You can expand your reach enormously while deepen connections to your current business partners.

Central Location

Ideally placed in Europe as a hub for goods and services, inclusion in the EU has benefited Germany enormously. Germany shares borders with every major economy in central Europe, providing instant access to both established markets in Western Europe and growing markets in central and eastern Europe. In short: You can expand your reach enormously while deepen connections to your current business partners.

A Stepping-Stone to Succeed in Other Countries

A foreign business that demonstrates the credentials and persistence to satisfy the testing requirements of the German market can often then use this success as a stepping-stone to further expansion abroad, in markets such as the European Union, Russia, Belarus and Turkey. Achieving success by doing business in Germany can open doors for foreign firms to access other growing markets!