Why Get A Business Started In Germany?
Germany and England have a very long and intertwined history. Football is a microcosm of this relationship. We adore them as individuals. Germans are sophisticated, thoughtful and polite. However, our collective attitude hasn’t been as friendly. Germans are our sporting rivals and the punchline to many of our jokes. However, the one attribute that cannot be joked about is the socioeconomic power of Germany. The question should actually why shouldn’t you invest in Germany?
It is the quintessential heterogeneous nation: economically, racially and linguistically. It has been almost two decades since the Berlin Wall fell, and ever since the Germans have been busy swinging cranes, bashing metal, laying cement, contemporizing and spending money ever since. The country has been burying its past and building its future. The reunification and convalescence program didn’t take much time at all and is one of the most impressive in all of modern history.
Germany is now on the frontlines when it comes to economic process and there isn’t anything standing in the way of ambitious entrepreneurs who have good ideas and some capital. Fundamentally, it is mainland Europe’s economic engine and more than 75 percent of the population is educated at the university level. Incompetence and ineptness in Germany are as rare as strong verbs are. And its brands are as distinct as its accent is: Volkswagen, Puma, Porsche, Persil, Nivea, Knorr, Jagermeister, Hugo Boss, Haribo, Braun, Aldi.
High amounts of electricity are emitted by the Deutschland, to power, brighten and charge all its economic circuits boards. In addition, it accommodates the EU’s largest economy, market, and population, and the government recognizes a good thing whenever it has it. The Germans are prepared to offer you a financial boost to get established in some of the country’s smaller areas and certain incentives for thriving in such cities as Frankfurt, Munich, and Hamburg. Germany still appears to be an all-or-everything deal either way, and we can’t lose, unlike in football.
So, if you are prepared to follow in the footsteps of Germany and build your future, then keep reading to find out what makes this country such a European utopia for entrepreneurs.
Working and Living in Germany
What are the exchange and currency?
Like fellow EU members, the Euro is used in Germany.
What is the population of Germany?
Germany has a population of 81.63 million, which is the EU’s largest population.
How are the climate and weather?
Most of Germany has a temperate seasonal climate. It is characterized by cold winters and warm summer. However, it is rare to have prolonged periods of snow or frost. Rainfall occurs throughout the year. The average daytime temperature in January is 38F (3C), and midsummer is 72F (22C). Extremes during the hotter months can reach 95F (35C) and in winter to 5F (-10C).
What is the difference?
Germany is one hour ahead of UK at GMT + 1.
What languages are spoken there?
Germany’s official language is German. It is a Germanic language. Within modern Germany, there are two groups that relate to geographic locations: High German is spoken in southern Germany, Switzerland, and Austria; Low German is spoken in northern Germany.
Do the people speak English or will I need to learn German?
If you know some German it will definitely make your life easier. It will also increase the chances of your new business’s success. For instance, it will make it easier for you to share information with your suppliers and customers, or learn about important developments that affect your market in the newspapers.
However, when it comes to speaking English, Germans are considered to be among the best speakers, and the population overall has an impressive grasp of the language.
The country of Germany is among the most thriving market economies in the world. It is the third largest economy in the world in terms of exchange rate terms of the U.S. Dollar, the fifth in purchasing power parity (PPP), and Europe’s largest economy.
Germany favors closer European political and economic integration, and its commercial and economic policies are determined increasingly by EU single market legislation and EU members.
Reform measures have been initiated by the current government, like gradually increasing mandatory retirement age, going from 65 up to 67. Additional steps have been taken as well to increase more involvement by females in the labor market.
Germany’s economy has a strong focus on exports, which account for over one-third of the nation’s activities. The main exports of Germany are:
The primary imports are:
What important essentials should I be aware of?
It is important for foreign investors to be aware of any EU laws that are applicable to their businesses.
Foreign investors can adopt any type of business investment and can take control of or acquire a stake in a company that is set up already.
Across Germany, there is an abundance of talented and qualified staff. In most sectors apprenticeships are common and schools and universities are located in all of the country’s major cities. However, throughout the country, there is a shortage of computer and IT consultants, and in southern Germany, there is a shortage of trained technical staff. In eastern Germany, where there is still restructuring occurring, there is high unemployment. Having retraining programs is critical to guarantee enough semi-skilled and skilled employees.
In all larger towns and cities, there are government employee exchanges that are available. They are the most commonly used sources of information for potential employers and job-seekers as well.
There are not a lot of restrictions on services and companies wanting to do business in Germany. The country, however, is well regulated. Before you proceed with an investment, you are advised to investigate matter first. This is particularly relevant for any businesses involved in the construction industry and for artisans. Germany has overseeing government agencies for the insurance companies and banks. A majority of other services and industries are part of associations, and they dictate, to a lesser or greater extent, which its members can and cannot do. If you’re a non resident you can read some of the issues here on the VAT Global blog.
Financial Aid and Incentives
The Federal government of Germany is happy to provide a useful range of incentive programs for your business, including bursaries and loans. There are parts of Germany that are not as structurally sound that may offer grants up to 55% of your total capital investment.
At more local levels, sometimes it is possible to receive a tax cut or beneficial rates. However, you need to keep in mind that there are very few if any inducements offered by the major cities like Munich, Stuttgart, Frankfurt, Cologne, Dusseldorf, and Hamburg. Therefore, you need to decide whether you prefer the benefits that a large city has to offer without any incentives or be given a financial boost from a smaller location.
First of all, it is critical that the most senior individual in your business be sent. Ideally, it should be you. However, either way, whoever gets delegated needs to be in the position to be able to speak for the business when it comes to all aspect that pertains to starting a company, and also have the knowledge and power to be able to make decisions right on the spot. There are obvious advantages if the person is a qualified technician or speaks German. But what is of utmost importance is level of responsibility.