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Nuances of opening a branch of a foreign company in Germany

Publication date: 05.11.2022
Registering a representative office in Germany is one of the most progressive and balanced decisions in 2022 for developing your business, as well as obtaining new customers and markets.

The main advantages of doing business in Germany

As you know, Germany is an EU member country, which gives a businessman an undeniable advantage when creating a branch in this state. Among the main features are:
  • 1
    Germany is one of the largest industrial and commercial centers of the European Union.
  • 2
    Availability of a transparent tax system and reliable legal system.
  • 3
    A developed network to market products or services to consumers.
  • 4
    One of the world's innovation centers for the development and launch of modern products.
  • 5
    A developed network of banks.
  • 6
    Partnership relations with many developed and developing world states. DTA agreements have been signed with more than 80 countries of the world.
  • 7
    It is possible to register a company if the founder is outside the country.

Opening a branch office in Germany

Registering a subsidiary of a Russian company in Germany is an excellent opportunity for independent work in a foreign market. At the first stage of opening a business, a businessman needs to choose a form for registering a company. There are several options:
  • 1
    A subsidiary registered as a German organization with legal independence.
  • 2
    A branch that will not be an independent company. Working within a branch in Germany involves copying the goods and services offered by the main company.
  • 3
    A department that has an auxiliary function (call center, marketing department, overseas warehouse) for carrying out the activities of the parent company.
  • 4
    A representative office, which implies the expansion of the company's influence on the German market.
Please note that a representative office and department do not require registration with the relevant authority or entry in the Commercial Register. However, when choosing a branch or a subsidiary form of doing business, you will have to collect a certain package of documents. As a rule, they include:
  • 1
    Application.
  • 2
    Corporate charter with notarization.
  • 3
    Statement of the management structure.
  • 4
    Certificate of deposit of the authorized capital in a German bank.
  • 5
    Visas of Russian founders.
  • 6
    Legal address in Germany.
  • 7
    Information about shareholders or participants.
Business owners prefer the GmbH form for their business registration. Please note that the minimum authorized capital is 25,000 euros, and the founders are not liable for the company's obligations.

In case of problems when opening a branch company in Germany, it is necessary to seek competent legal assistance. Lawyers and auditors of the DVP Audit consulting company provide a full range of services for registering your business in this European country.

You are most welcome to meet us both in Russia and Germany!

DVP | Moscow
ООО „Dr. Voigt & Partner"
Duchovskoy per. 17/10, 115191 Moscow, Russia
info@partnery-audit.com
+7 495 690 92 62

DVP | Hamburg
DVP Audit GmbH Wirtschaftsprüfungsgesellschaft
Erik-Blumenfeld-Platz 27 b, 22587 Hamburg, Germany
info@partnery-audit.com
Tel. +49 40 866 6740 Fax +49 40 866 67444