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Germany - DOING BUSINESS


Local business incentives


The most important aids concern transactions achieved in the 5 new East Landers. Companies can benefit from equipment, structures, research and development subsidies (the Ministry of Economics and Technology should be contacted). They can also get preferential credits and guarantees, for example when they create autonomous structures in new Lander or when they buy stock into a company located in these new Lander. Both the Invest in Germany agency and the Federal Commissioner for Foreign Investment in Germany should be contacted for further information.


Legal forms of companies


Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Gesellschaft put beschrankter Haftung (GmbH) is a Private Limited Company   Minimum 2 partners
nb: 1 member for a single-member GmbH.
  		Minimum 25,000 € with release of at least 50% at the constitution.   Liability is limited to the amount contributed.   About 1,000 € (+ possible lawyer's fees from 600 ? 800 €).   No  
Aktiengesellschaft (AG) is a Public Limited Company.   Minimum 2 shareholders.
nb: 1 shareholder for a single-member AG.
  		Minimum 50,000 € with release of 25% at the constitution.   Liability is limited to the amount contributed.   Expenses > 1,000 €.   Yes  
Offene Handelsgesellschaft (OHG) is a general partnership.   Partners can be individual or legal entities.   No minimum capital.   Partners' liability is joint and indefinite on the company's obligations and debts.   Expenses > 1,000 €.   No  
The Kommanditgesellschat (KG) is a limited partnership.   Two types of partners: active partners and sleeping partners.   No minimum capital.   Active partners' liability is personnal and indefinite. Liability of sleeping partners is limited to the amount contributed.   Expenses > 1,000 €.   No  


Registration and licensing procedures


Called "Satzung" for an AG, and "Gesellschaftvertrag" for GmbH, status must be drawn up in a notarized deed.
The company's registration should be made with the Trade Register, at the Clerk's Office of the Magistrates' court where the company is located.
Branches must be registered with the Trade Register where the company is located.
Registration has to be published in the "Bundesanzeiger" as well as in the legal advertisement journal. Different declarations must be made after registration and, notably with the tax Office (Finanzamt) and the Social Security.



Foreign exchange control


There is no currency exchange control in Germany. Consequently, free conversion is carried out as well as the right to transfer profits and capital. A declaration is requested for capital transfers exceeding DM 5,000. This declaration, which is only required for statistical purposes, must be made with the Lander's central banks. There is no longer applicable exchange rate.


Regulations concerning equity investment


A majority holding interest in the capital of a local company by foreign investors is legal.  


FDI inflows in Germany




FDI inflows (millions US$) 2000 2001 2002 World rank
Foreign Direct Investments (F.D.I.) 50516   27265   -38557   197 / 196
Sources : UNCTAD Database FDI/TNC


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Last modified in December 2003
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