Legal System

Legal System

Stable and Transparent Legal System

German business law is governed by the principle of freedom of economy, meaning that business activities generally do not require a specific permit or license. Moreover, German law usually does not make a distinction between Germans and foreign nationals regarding investments or the establishment of companies.

Germany is home to a legal environment rightly renowned for its stability and transparency. The World Economic Forum ranked Germany among the leading countries of 144 competitors for its judicial independence. Solid codifications and an effective enforcement system provide investors with a secure legal framework and the possibility to quickly enforce their rights.

Executive Opinion Survey: 7 = efficient with clear, neutral processes; 1 = inefficient

A Safe and Secure Business Landscape

On registering intellectual property rights, the same conditions apply for both foreign nationals and Germans. Patent applicants who do not have a place of residence or a branch in Germany have to nominate a patent attorney as the representative for the signing of the patent registration.

Germany is second overall in the renowned corporate law firm Taylor Wessing’s Global Intellectual Property Index, just behind the United Kingdom.

800 = high intellectual property protection, 0 = low intellectual property protection

Efficient Company Formation Procedures

Company formation procedures are swift and efficient, requiring only a few clearly defined steps to establish a new company. Company establishment costs are moderate and, more importantly, can be easily determined from the outset.

The GmbH Act provides a set of model articles of association, which can be used for uncomplicated standardized formations of a GmbH.

Public business registers provide transparent information pertaining to company legal representation and individual personnel authorized to conduct business transactions. This information is freely accessible to everyone. As such, the risk of fraud and manipulation – a major cause for concern in some industrial nations – is effectively negligible in Germany.


Fabian Möpert Fabian Möpert | © GTAI


Fabian Möpert

‎+49 30 200 099 510

Alexander Walter Alexander Walter | © GTAI


Alexander Walter

‎+49 30 200 099 540


The Legal Framework

Learn more about the regulations of business activities in Germany and how its legal system can protect your investment.


Establishing a Company

Establishing a business in Germany is easy but requires several steps. Find all the information you need to start your business in Germany here.