Germany – An Attractive Investment Country For Foreign Investors

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Germany is an important gateway to world markets. Its central location in the middle of Europe makes Germany advantageous. It has numerous advantages for investors with its high-performance road, rail and telecommunication network.

In addition to the market of EU member states, foreign companies that want to enter new markets in Central and Eastern Europe benefit from the important advantages that Germany offers as an investment country, thanks to the branches and/or strategic partnerships they have established in Germany. Legal conditions valid for German investors are also valid for foreign investors. In other words, there was no need to enact a law regulating the legal status of foreign investors. Germany supports investors with its clear tax system and unbureaucratic permitting process.

The first authority that foreign investors considering investing in Germany come into contact with is the Foreign Investment Office of the Federal Government (GTAI). Here, expert advisors enlighten foreign investors about the economy and investments in Germany. They also help to contact, when needed, economic support institutions and organizations in the states, possible German partners (see the list of State business development organisations).

Limited Company (GmbH) establishment conditions:

The capital should be at least 25.000,- €.

The company contract must be certified by a notary public.

Registration in the trade registry is mandatory.

The business must use the term “GmbH” against the outside.

Company bodies, director(s) and shareholders are the general assembly. Managers are authorized with the management of the Limited Company and represent the company outside (in commercial relations). On the other hand, the general assembly of the partners takes basic decisions such as examining the annual balance sheet, distribution of profits, election and dismissal of managers, and changes in the company contract.

The law of limited companies does not require the director or directors to be German citizens, have a residence in Germany or speak German. However, knowledge of German can be sought in terms of audit law.

Branch opening conditions:

In addition to the establishment of an independent business, it is also possible to open independent business parts (branches).

The branch, which is not regulated by law, operates separately from the business center; It indicates the independence of private activity, accounting, balance sheet and assets, operates in its own settlement and has a competent court to which it is affiliated. However, it has no legal personality. Although the commercial title does not have to be the same as the central business title, it should be possible to understand the relationship.

The Turkish company (Limited Company) wishing to establish a branch shall notify the municipality of the address where the branch will be located. In addition, the company will make a declaration to the trade registry of the regional court where it will establish the branch.

The following documents will be submitted at the time of application:

For the establishment of a Limited Company Branch, an officially approved copy of the articles of association and the following records should be included:

Commercial title and headquarters of the company, subject of operation

Partners

Number of managers and representation powers

Amount of basic capital

Information on establishing a Joint Stock Company (AG) in Germany

The legal status of the Joint Stock Company is regulated in the Shares Law (Joint Stock Companies Law). Joint Stock Company is the most suitable company form in terms of carrying out large-scale economic activities. It contains the legal principles required in international business connections to a large extent.

Joint Stock Company (AG) establishment conditions:

There must be at least 1 shareholder.

The basic capital is at least 50.000,- €.

A court-approved or notarized articles of association contain important information about the A.Ş.

Inc. must be registered in the trade registry.

Inc. Its organs are the Executive Board, the Supervisory Board and the General Assembly.

The Executive Board consists of one or more persons and is responsible for managing and representing the company

The Supervisory Board is authorized with the election and dismissal of the Executive Board as well as the continuous audit of the company.

The General Assembly consists of the shareholders and is invited to each meeting by the Executive Board. The General Assembly takes decisions on amendments to the articles of association, capital increases, election and dismissal of the Supervisory Board, which must be approved by the court or notary public.

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