DOING BUSINESS IN GERMANY
Being the third largest economy worldwide, Germany is a country that many wish to enter business-wise. We at BDG have a strong focus on doing business in Germany and on supporting our clients with laser-sharp sales and maketing services to achieve this goal. However, the German market is also a challenging one; decision-making can be slow, formalistic structures and details can be paramount to success and – above all – there is an inertia in how things are thought and executed which comes as a surprise to many.
But this is also part of the advantage of doing business here – you can count on stability and longevity of partnerships if you make it here.
Our team of experts has the proficiency and experience to help you navigate these complexities of the German market, mitigate risks, and maximize your chances of success.
WHY IS GERMANY AN ATTRACTIVE BUSINESS DESTINATION?
Over the years, BDG has successfully assisted various businesses in establishing their operations in Germany and provided strategic business consultation to numerous investors. Generating revenue is the primary objective of any business, and Germany offers a diverse range of opportunities ideally suited to support you in obtaining that goal. Let us look at some of the advantages:
Commitment to Innovation
Germany has a long-standing legacy of prioritizing science and technology, resulting in a highly innovative nation. It is no coincidence that countless students and scientists from all over the world decide to develop their careers at German universities and research institutes. The government’s substantial funding and incentives for research, combined with its position among the top ten most inventive nations, make Germany an ideal choice for expanding your business.
Exceptional Infrastructure
Germany is permeated by a world-class transportation and logistics network, comprising over 300 airports, 23 heliports, extensive railways, and well-maintained roads. This extensive infrastructure facilitates smooth business operations, while Germany’s high-speed internet connectivity supports international remote employees.
Highly Skilled Workforce
The German labor force stands out for its exceptional educational attainment, with individuals averaging 17 years of academic pursuits. Germans are renowned for their strong work ethic, their directness in professional endeavors, and their esteemed manufacturing capabilities.
Investment Incentives
Germany offers a range of incentive programs and public funding mechanisms to support business growth. These programs include GRW Grants for offsetting establishment costs, Research and Development Grants for advancing research initiatives, and Employment Grants for expansion of staffing. Through mitigating initial investment expenses, these programs can substantially facilitate your company's entry into the German market.
Smooth Communication
Germans are well-known for their excellent command of spoken and written English. The majority of German employees possess near-native level English proficiency, reducing the risk of cross-cultural misunderstandings when conducting business in our country. This aids seamless communication and minimizes cross-cultural ambiguity for businesses.
Openness to Imports and Exports
Germany both imports and exports a wide range of products, including automobiles, pharmaceuticals, machinery, chemicals, and many more. With an annual export value of 1,590 billion Euros and imports totaling 1,366 billion Euros (2023), Germany's open market strengthens its appeal as a highly opportune destination for your business.
Germany's Key Consumer Market
With a population of 84.6 million (September 2023), Germany stands as the European Union's largest consumer market. Additionally, Germany hosts world-famous trade shows like MEDICA, the Hannover Fair, Automechanika, and the ITB Tourism Show. The contacts you establish at these events, not only with German but also international business partners and customers, once again highlight that Germany is the ideal starting point to advance your business.
Strategic Location and Expansion Opportunities
Due to its strategic position within the European Union as well as its central geographical position at the heart of Europe, Germany serves as a crucial hub for numerous American corporations seeking to expand their operations across Europe and even worldwide. Thus, doing business in Germany not only opens the door to business opportunities in our country. It offers a pivotal gateway to achieving success in other nations as well.
OVERCOMING CHALLENGES IN GERMANY’S BUSINESS LANDSCAPE
Since we at BDG guide businesses in establishing operations and gaining access to the German market, we understand the challenges faced by international businesses. While this list is not exhaustive, we want to provide you with an overview of some of the most common challenges foreign businesses encounter when entering the German market.
Bureaucratic Requirements
Expanding your business to Germany involves dealing with bureaucratic requirements that can prove challenging for international businesses. According to the World Bank’s report, Germany ranks 125th out of 190 countries in terms of the difficulty of starting a business. Expats often struggle with the registration process and navigating their expansion project through the sea of German authorities. BDG is familiar with these bureaucratic intricacies and has experts who will guide you through every step of the process, ensuring a smooth and hassle-free expansion of your business to Germany.
Unique Business Culture
Germany possesses a unique business culture that emphasizes punctuality, order, efficiency, attention to detail, and a serious demeanor. This can present a challenge for international businesspeople, as the frankness of Germans may be perceived as arrogance by expats. Since BDG is at home in this culture, we can help ensure that your business principles are upheld while also providing access to quality employees who are willing to collaborate with you.
Complex Payroll and Tax Laws
Germany is known for its highly intricate tax laws, which demand significant time and comprehension to adhere to. Understanding these laws is paramount to ensure compliance and avoid inadvertent violations that may lead to potential consequences. BDG's team of experts possesses in-depth knowledge of these complex tax regulations and can guide you through them with precision, enabling a seamless and compliant expansion into Germany.
BDG: YOUR TRUSTED PARTNER IN GERMAN MARKET EXPANSION
Expanding into the German market presents unique challenges for international businesses. At BDG, we not only acknowledge these intricacies but also provide tailored solutions to ensure a smooth entry into Germany. By partnering with us, you can transform obstacles into opportunities, turning your expansion aspirations into a tangible reality.
BDG specializes in opening the right doors to decision makers in Germany that you need to develop your business here. Regardless of your goals’ stage of development, our team possesses the expertise to guide your venture from thought to successful reality. Moreover, if your expansion involves establishing a digital presence in Germany, we offer unwavering support at every step of the process.
Furthermore, BDG has established strategic partnerships with professionals like renowned law firms, financial experts, and tax advisors. These collaborations allow us to address any intricate matters even outside our own domain of expertise and serve as a centralized point of contact for all aspects of your market entry.
What’s Next?
To achieve your business expansion objective in Germany, it is essential to have the proper guidance and support. BDG is here to assist you in connecting with the decision-makers in one of the world’s top economies.
Don’t miss out on the potential that Germany offers. Contact BDG today and let us assist you in achieving your business goals.