The subject of investment in Germany has become an issue that is on the agenda of more and more Turkish companies. Turkish companies have recently started to intensify their efforts to enter the German and therefore the European Union market by establishing or taking over a company in Germany or establishing strategic partnerships.
So Why Germany?
With the largest economy in Europe and the fourth largest in the world, Germany is a country that brings many advantages to investors not only in the European market but also in the world markets. The sectors in which Germany is strongest are the service, industry and construction sectors. Especially Britain’s exit from the European Union causes the weight in the banking sector to shift further to Germany.
The business ethics and timely payment ethics dominating the German market and the technological power in the country enable foreign investors to strengthen their corporate image in their own countries by establishing companies in Germany and / or entering strategic partnerships. In particular, it is observed that the sales of products sold under the “Made in Germany” label are made much more easily and the bargain range in the price of the products has decreased.
In companies established in Germany, it is not required that the partners be German citizens or a legal entity based in Germany. This situation allows the establishment of a company with one hundred percent foreign capital. The legal conditions that apply to German investors also apply to foreign investors.
In addition, another advantage for investors is that the health and social insurance system in Germany offers satisfactory solutions to company employees and managers compared to many countries. This situation provides an advantage in finding managers and employees after the establishment of the company.
How Can I Establish a Company in Germany?
We recognize Turkey as well as the capital of joint stock companies and joint responsibility on the basis of capital limitations with the company (Aktiengesellschaft – AG) and limited liability company (Gesellschaft mit beschränkter Haftung – GmbH) established in Germany possible. However, our advice to Turkey from investors who want to make the first investment in Germany, managing a lot easier with Limited if they want to start, and if the investment company may recognize the joint stock companies in the country and the market are published after you create the appropriate personnel.
It is possible to establish an extremely low capital limited company (Unternehmergesellschaft UG – sog. Mini GmbH) in Germany and in a normal capital limited liability company, the capital must be at least 25.000, – EUR.
In Germany, a limited company can be established with one or more partners. For the establishment, first of all, the city of the company headquarters should be determined and a company address should be found. Since the tax opening must be made by a financial advisor as soon as the company is established, it should be agreed with the financial advisor before the establishment. The company agreement must be prepared in accordance with German Laws and must be certified by a notary in the city where the company headquarters is requested in Germany.
The German Limited Liability Company law does not require partners and / or managers to be German citizens or to have a residence permit / residence in Germany or to speak German. However, after a public institution or a director from Turkey it is one of the criteria that play a positive role in the current session to know the purpose of sending the German people to be sent to Germany.
How difficult is it to open a Bank Account?
Banks in Germany may request that a detailed file be presented to them before opening an account to companies established by foreign nationals and information on the company to be established and company partners and if there is a potential project in Germany. Although this is not always the case, not every request to open an account is accepted. For this reason, the partners of the companies to be established must have contacted the bank where the company capital will be deposited before the establishment process at the notary.
How Long Does The Company Establishment Take?
How long the establishment of the company took is one of the most frequently asked questions to us. It takes approximately 3-4 weeks for the company to be registered and announced after the company address is decided, the tax is opened and the company correspondence is agreed with the accountant, the approval of opening an account is negotiated with the bank, and all the establishment documents are prepared and given to the notary.
Importance of German Laws!
Depending on the sector in which a company to be established, it may be necessary to obtain various permits before or during the tax opening. Some of the sectors that require these permits are food production and gastronomy, construction and real estate management. It is extremely risky to make investment plans without pre-establishment legal prior knowledge, and it is extremely important that the establishment procedures are made in accordance with the opinions of legal representatives who are based on German Law and that all transactions are carried out in accordance with German Laws in order to avoid cost and time loss!