Choice of the Legal Form

Foreign investors can choose between a variety of legal forms for conducting business in Germany. There is no specific investment legislation in Germany, nor is a minimum percentage of German shareholdings required for foreign entrepreneurs.

Decisive criteria for the choice of legal form are generally the intended function of the shareholders, liability and terms of taxation. Expanding companies often choose to establish a local subsidiary or to register a local branch office. Especially the subsidiary's degree of independence is a major argument for this option. Foreign companies can choose the most suitable legal company form as a corporation or partnership. Either way, the establishment procedure is straightforward with well-defined steps.