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Market Entry & Expansion Germany Thinking Beyond Boundaries
Agenda
The Marketplace Germany
What We Do
Business Incorporation
Immigration Law
Business Cases
Q&As
2
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?
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
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.”
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
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!
WHAT WE DO
Market Entry Germany
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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.
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
Our Market Entry Framework
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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
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
BUSINESS
INCORPORATION
Market Entry Germany
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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
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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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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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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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
IMMIGRATION
LAW
Market Entry Germany
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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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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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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
BUSINESS CASES
Market Entry Germany
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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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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
25
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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*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
Consultinghouse
Market Entry Germany
Kurt-Blaum-Platz 8 63450 Hanau/Frankfurt M. Germany +49 (0) 6181 - 250330 www.consultinghouse.eu
Martin Wilke Managing Director
Ritika Malik Business Development Manager
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
CONSULTINGHOUSE
&
COUNSELHOUSE
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