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Market Entry & Expansion Germany Thinking Beyond Boundaries

Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

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Page 1: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Market Entry & Expansion Germany Thinking Beyond Boundaries

Page 2: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Agenda

The Marketplace Germany

What We Do

Business Incorporation

Immigration Law

Business Cases

Q&As

2

Page 3: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Why foreign companies enter Germany?

3

Expanding existing business

Increasing of sales-revenue

Sourcing of new business

opportunities

Increasing company-image

Leveraging economies of scale

Building a stronger global

footprint

Why Going Global?

Page 4: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Marketplace Germany

4

Strongest economy in Europe

Central location in Europe and

hub for goods and services

Modern constitutional state with

transparent and considered laws

More than 22,000 foreign

enterprises established in

Germany per year

“Made in Germany” – Seal for

quality & liability

The Marketplace Germany

Page 5: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Germany‘s „big five“ Locations

5

Xxx

Düsseldorf

Xxx

Frankfurt

Xxx

Hamburg

Munich

Xxx

Berlin

”Germany is one of

the world's leading

innovative nations.”

Page 6: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

The German Economy

6

Key Figures

Economic growth 2012 0.7%

Enterprises 2012 3.6 Mil.

Persons in Employment in domestic territory

2012 41.6 Mil.

Increase in real earnings 2012 0.5%

Inflation rate 2012 2.0%

Foreign trade balance 2012 EUR 188 Bil.

Largely characterized by SME’s

Export & import-oriented

Highly qualified labor force

High level of innovation through R&D

Developed infrastructure

Page 7: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Why foreign companies enter Germany?

7

Achieving a tailored market assessment

Achieving a successful market entry

implementation

Protection of intellectual property within and

across European borders

Complying with statutory German law

Enhance sustainability in new business

environment

Business Challenges Today!

Page 8: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

WHAT WE DO

Market Entry Germany

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Page 9: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Addressing unique business challenges

Whether your are incorporating a new business, planning to restructure your existing

organization or looking into a possible new acquisition. Clients engage our advisory services

to successfully manage their business in a strong German marketplace.

Consultinghoue & Counselhouse in cooperation provide innovative solutions to address

unique business challenges that support companies across various industries.

Page 10: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Advised clients in 2013

India

China

UK

USA

Russia

France

Bangladesh

Turkey

Hong Kong

Strong Expertise in advising companies from

different countries and across various industries

“In 2012 Consultinghouse and Counselhouse guided companies from more

than 15 countries and 7 different industries”

0% 10% 20% 30% 40%

Services

Technology

Energy

Consulting

Automotive

Life Sciences

Chemicals

Industries

10

2013 consultinghouse 2013 consultinghouse

Page 11: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Our Market Entry Framework

11

Market Potential & Financing

Location, Legal Form & Cost

Structure

Business Incorporation

Monthly Payroll & Financial

Reporting

M&A Strategy Advisory

Business Management in

Germany

Business Turnaround

Market Entry Strategy

Incorporation

Employment

Daily Operations

Growth

Management

Operations

Market Exit Strategy

Management Challenges Tax & Legal Challenges

Legal Framework &

Compliances

Incorporation Contracts

Immigration of Foreign

Workers

Visa & Working Contracts

Legal Due Diligence

Staying Compliant

Business Liquidation

Business Lifecycle

Page 12: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

How we create value for our clients

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Market Entry Advisory

Business Incorporation

Accounting* & Payroll

Services

Ongoing Corporate Guidance

M&A Advisory*

Turnaround & Exit Strategy

Legal Advisory

Generating of incorporation

documents

Immigration Law Advisory

Labor Law Advisory

Corporate Tax & Legal

Services

Business Liquidation Advisory

CONSULTINGHOUSE Accounting* & Management Consulting

COUNSELHOUSE Tax & Legal Advisory

Business Lifecycle

Market Entry Strategy

Incorporation

Employment

Daily Operations

Growth

Management

Operations

Market Exit Strategy

Page 13: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

BUSINESS

INCORPORATION

Market Entry Germany

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Page 14: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

German Legal Entities

Limited liability of shareholders to

creditors in terms of company debts

Any private Individual can be authorized

to be Managing Director of the company

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Full personal unlimited liability of

shareholders

Only shareholders can be authorized as

Managing Director of the company

74%

17%

9%

CORPORATIONS

GmbH AG KG a.A.

60% 25%

10% 5%

PARTNERSHIPS

GbR GmbH & Co KG OHG KG

2012

www.destatis.de

2012

www.destatis.de

Page 15: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

The German Limited: Characteristics

High credibility in the European market

Company with limited liability

Shareholder can be private individual or corporation

No personal responsibility of shareholders for company‘s debts

At least one Managing Director to represent the company

Shareholder (German or Non-German) can also be employed as MD by his

company

Most chosen to facilitate business within and across the European borders

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Page 16: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

The German Limited: Requirements

Min. 25.000€ share capital

Pay in the half of minimum share capital on a German company account

At least one private individual as Managing Director

Notary certified Articles of Association

Opening of a corporate bank account

Registration with the commercial court

Registration of domestic and European tax number

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Page 17: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

The German Limited: Incorporation Process.

Preparation of

Incorporation

documents

Court Notary

appointment

Bank

appointment

Preparation Presence of

companies

General Manager

and Stakeholder

required

Notarization of

Articles of

Association

Corporate bank

account opening

Formation Issuing of

official tax &

registration

numbers

Issuing of

official bank

details e.g. online

banking

Finalization

Transfer of share

capital

Court

Registration

Municipal trade

Registration

Registration

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Page 18: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Process of Payroll Services

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Meet deadlines of

social securities &

tax authorities

Monthly updates

with employer on

Salary (if not fixed)

Payroll summary

to employer

Monthly Payroll

*Preparation is only required for the first-month payroll

** Depending on arrangement made with the client

Registration of the

employer

Registration of the

employees

Registration

Checklist with

details of the

employer &

employees

Provide the

confirmation

Preparation*

Net Salary to

employees**

Payment to tax

authorities &

social security**

Completion of

Payroll service

Disbursement

Generation of Income tax statement for each employee

Transmission of annual earnings

Social security

Statutory accident insurance

Annual individual tax return (optional)

Employee information

Gross/ net salary

Social security deduction

Tax deduction

Sick leaves

The Salary Slip

Page 19: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

IMMIGRATION

LAW

Market Entry Germany

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Page 20: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Labour & Residence Permit:

Requirements for Shareholders

Employment contract concluded with own GmbH

Certificate of incorporation

Articles of Association

Comprehensive business plan for Germany describing objectives for the Chamber of Commerce

Personal & parent company‘s bank statements

CV & qualification certificates

Old age insurance required for Shareholders above age of 45

*Labour & Residence permit has to be applied in the country of residence at the foreign representative office after company registration.

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Page 21: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Labour & Residence Permit:

Requirements for Employees

Employment contract concluded with a German/Indian company

CV & qualification certificates

Valid passport in home country

Proof of travel health insurance

Visas have to be obtained in home country prior entering Germany (German Embassy)

*Labour & Residence permit has to be applied in the country of residence at the foreign representative office after company registration.

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Page 22: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Blue Card Application for Non-EU Citizens

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German or equivalent university

degree

Highly qualified individuals

Valid working contract with a German

company

Valid working contract with a gross

annual salary of at least €46.400 Initial

application in home country

Requirements

Issued for four years

Permanent residence permit after 33

month of working tenure possible

Mobility within the Member States of

the European Union after 18 month

Spouses receive unrestricted access to

employment in Germany

Benefits

Page 23: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

BUSINESS CASES

Market Entry Germany

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Page 24: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Solution

Establishing an incorporation of

a legal entity in Germany

Consultinghouses Strategy

Consulting regarding ‘how to

enter the German market?’

Coverage of all local operation

services

Full HR and Payroll Advisory by

Consultinghouse

Business Case – TACO GmbH

The Customer – TATA

TATA AutoComp Systems Ltd. is one of India's leading automotive components conglomerate. The company operates through

offices in India, China, Japan and US. Tata also has 10 Global Partnerships and 7 Joint Ventures with leading companies from the

global automotive industry.

Text

Text Challenge

Develop TATA AutoComp’s

business in EMEA by sending

Indian employees to Germany

Establish a German legal entity in

Germany which would allow

scaling the growing EMEA

business according to the

increasing number of Indian

employees working out of

Germany

Benefit

Expansion of business in

EMEA due to fast ramp up of

Indian employees in Germany

Cost and time saving due to

single service provider

Taking advantages of

Consultinghouse‘ best practices

and business network

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Page 25: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Solution

Consultinghouses Strategy

Consulting regarding ‘how

to enter the German

market?’

Corporate tax and legal

advisory provided by

Counselhouse

Business Case – EDUsys GmbH

The Customer – EDUsys GmbH

EDUsys Global is a leading Indian education training provider in the global market with it‘s

headquarter in Bangalore, India and offices in the US, Australia, London and Hong Kong.

Challenge

Set up an office in Germany

to expand their existing

virtual business and explore

new business opportunities

in the German and European

market

Benefit

Customized and quick

incorporation in Germany

Expanding to European

Market without physical

presence in Germany

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Page 26: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

Summary

We provide 360° client oriented services.

We define a personalized roadmap to meet your long-term objectives

We provide tailored business solution to meet your individual business challenges

We provide a 360° perspective on your business life-cycle in Germany

We provide ongoing compliance services

Consultinghouse and Counselhouse is a true One-Stop-Shop providing

market entry consulting, accounting & management services as well as Legal & Tax advice

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Page 27: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

*Consultinghouse provides management consulting as well as services in regard to accounting of current business activities, the generation of

payslips, as well as the registration for payroll tax. For tax or legal services please contact our cooperation partner www.counselhouse.eu.

Counselhouse

Legal Advisory

Kurt-Blaum-Platz 8 63450 Hanau/Frankfurt M. Germany +49 (0) 6181 - 250332 www.counselhouse.eu

Katerina Koleva Business Lawyer

[email protected]

Consultinghouse

Market Entry Germany

Kurt-Blaum-Platz 8 63450 Hanau/Frankfurt M. Germany +49 (0) 6181 - 250330 www.consultinghouse.eu

Martin Wilke Managing Director

[email protected]

Ritika Malik Business Development Manager

[email protected]

About Consultinghouse Whether you are incorporating a new business, planning to restructure your existing organization or looking into a possible new acquisition in Germany. Consultinghouse is providing innovative solutions to address unique business challenges that support companies across various industries. Clients engage our professional advisory services to successfully manage their complete business lifecycle in a strong German economy. www.consultinghouse.eu

About Counselhouse

Counselhouse is committed to supporting international clients to add a legal perspective on their business operations in Germany. Our clients engage our legal advisory to successfully keep their operations in legal balance when doing business within and across the European borders. www.counselhouse.eu

Contact

Page 28: Market Entry & Expansion Germany - Consultinghouse · Achieving a successful market entry ... Checklist with details of the employer & ... We provide a 360° perspective on your business

CONSULTINGHOUSE

&

COUNSELHOUSE

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