Germany - Market Entry and Legal Services

Lawyer & Law Firm in Germany

Germany is a very attractive market for investors and new business owners alike. The large, diversified economy of Germany is supported by a well-developed, reliable infrastructure, a highly-skilled workforce, a positive social climate, a stable legal environment, and a long track record of world-class research and development.

Commercial Relations between India-Germany

The Indo-German economic relations are characterized by strong bilateral trade and investment ties. The Make in India Mittelstand (MIIM) Programme, launched in 2015, aims to facilitate the entry of German MSMEs into India, with 152 companies currently participating. The Indo-German Chamber of Commerce reports that there are approximately 1,700 German companies operating in India. The major items exported from India to Germany include machinery, mechanical appliances, chemicals, and textiles, while the imports from Germany to India consist of optical and medical instruments, mechanical appliances, vehicles, and accessories. Germany is India's largest trading partner in Europe, with bilateral trade reaching USD 10.81 billion in 2022, marking a 9.32% increase from the previous year. Furthermore, Germany is the 9th largest investor in India, with FDI inflows amounting to USD 13.9 billion between 2000 and 2022.

Business Advantage for Indian Companies in Germany

Germany provides Indian companies with numerous advantages for expanding their business operations. As the largest economy in Europe, Germany offers a stable business environment, access to a robust consumer market, and advanced infrastructure. The country's expertise in sectors such as automotive engineering, machinery, renewable energy, pharmaceuticals, and IT presents lucrative opportunities. With a highly skilled workforce and vocational training programs, Indian companies can leverage Germany's talent pool for their operations. Germany's central location within Europe provides access to major markets, and the government offers support and incentives for foreign businesses. Collaboration with German research institutions and universities can foster innovation. The longstanding bilateral trade relationship between Germany and India further facilitates partnerships and networking opportunities. Conducting thorough market research and seeking professional advice are crucial when entering the German market.

Incentives and Support Programs by Germany for Indian Companies

Germany offers various incentives and support programs to attract and assist Indian companies interested in establishing their presence or expanding their operations in the country.

• Investment Grants: Germany provides financial assistance to foreign companies, including Indian companies, through investment grant programs to offset setup costs.
• Business Support Networks: Institutions like the Indo-German Chamber of Commerce offer networking events and business development services to support Indian companies.
• Tax Incentives: German tax laws provide incentives such as R&D tax credits, investment deductions, and relief for start-ups.
• Subsidies and Grants: Indian companies can access subsidies and grants for various aspects like R&D, technology transfer, job creation, and sustainability.
• Innovation and Research Collaboration: Programs like the German-Indian Innovation and Research Bridge encourage joint projects and knowledge exchange between Indian and German companies.
• Economic Development Agencies: Germany has dedicated agencies that assist foreign companies with market entry, finding suitable locations, and accessing funding programs.
• Start-up Support: Germany offers support programs for Indian start-ups, including mentorship, incubation facilities, and access to investors.

Starting a Business in Germany

Foreign investors are welcome to establish businesses in Germany without nationality-based barriers. Two common options for company formation are subsidiaries (such as GmbH or AG) and branch offices. Subsidiaries are independent companies owned by a parent company, offering flexibility and limited liability. Branch offices allow foreign companies to establish a presence in Germany, operating as extensions of the head office with legal responsibilities falling on the foreign entity. Both options require a local representative in Germany.

The broad steps to set up a business in Germany are:

• Register your address
• Open a Bank Account
• Register with the Tax Office
• Get a Trade License
• Register with the Finanzamt

Visa and Immigration

There are typically three types of residence titles in Germany, which vary based on the duration of stay and the nature of the business activity.

• National Visa
• Business Visa
• Settlement Permit

Germany offers a favourable investment environment with a strong economy, skilled workforce, and robust infrastructure. The renewable energy sector, especially wind energy, presents significant opportunities. The country's business-friendly policies and various company structures attract foreign investors. Thorough market research and adapting to local preferences are crucial for success. Germany's stability, investment climate, and focus on innovation make it an attractive destination for long-term growth.

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How do We Help?

At India Law Offices (ILO), we strive to deliver exceptional legal services to our clients not just within India, but on a global scale. Over the past two decades, we have diligently expanded our presence by establishing strong partnerships, both formal and informal, with esteemed professionals from leading law firms in key commercial hubs worldwide. These alliances have empowered us to offer efficient and seamless representation of the utmost quality in any jurisdiction. Through our extensive network, we are able to cater to the diverse needs of our clients and ensure that they receive top-notch legal assistance across borders.

With a host of global affiliations with some of the largest law firms and legal networks, India Law Offices makes business possible worldwide for its clients. We provide comprehensive support to German companies seeking to enter the Indian market. Our services encompass various aspects such as establishing subsidiaries or branches, navigating commercial contracts, and addressing any legal requirements. Additionally, we extend our expertise to Indian companies aiming to expand their operations in Germany, offering corporate assistance and legal support tailored to their specific needs. In collaboration with our German counterparts, we are well-equipped to provide guidance on cross-border transactions between India and Germany, including mergers and acquisitions (M&A), joint ventures, and other related activities. We are committed to helping our clients navigate the complexities of Indo-German business collaborations and achieve their desired outcomes. Our expertise extends to a wide range of areas, ensuring comprehensive assistance in various aspects such as:

• Corporate and M&A – Incorporation of Company, Branch Office, Merger & Acquisitions, Joint venture, Technical Collaboration, Taxation, Financial Reporting
• Commercial Contracts – Drafting & vetting of contracts like franchising, distribution, sales and marketing, licensing etc.
• Business and Civil Litigation – Representation before courts and judiciary bodies, Arbitration, Mediation
• Immigration – Obtaining Visa, Citizenship, Visa extension, Work Permit etc.
• Labour & Employment – Advice on Employment Laws, Tax implication on French nationals working in India, Drafting

Employment Contracts & HR Policy

• Real Estate – Buying & Selling of Property, Development of real estate projects.
• Intellectual Property Rights – Trademark, Copyright & Patents registration
• Family Law and Inheritance – Cross border Divorce, Marriage Registration, Child Custody, Adoption, Drafting Will, Setting up Trust or Estate

If you are an German company or individual seeking assistance in India or an Indian entrepreneur planning to enter the German market, we encourage you to complete the form below and connect with our team of legal experts. We are dedicated to providing the guidance and support you require.