Is it affordable to open a business in Germany?

Starting a Business in Germany |

About 4{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} of global direct investment goes into Germany and not too many counties are strongly connected to the world economy, but opening a business in Germany could still be challenging for people that are not too familiar with the tax and legal structures of the German government.

Among the countries in Europe, Germany remains the country that has the biggest economy and fourth-largest in the whole world. Its spontaneous growth in the economy is built on innovation, research and the ability to get the attention of foreign direct investment (FDI) from around the world. In Germany, there over 45,000 foreign companies doing their business unhindered by the government and this has made the unemployment rate dropped drastically.

When starting a business, you will need the services of other companies. You should remember to read about online services in Germany on You will read about other Germans who started business and the different companies the different business owners used. You will get to know the best companies to patronize for your business and those to avoid. The under-listed should be looked into and weighed the possibility of opening a business in Germany:

Starting a Business 

The procedure to open a business in Germany tells more about the complex way of doing business in the country. Despite its global rating, the World Bank and International Finance Corporation (IFC) rank Germany in 106th in the world being the country where that makes it easy for starting a business, largely down to the several procedures companies are required to navigate. Among other steps, businesses are required to liaise with the local chamber of industry and commerce, the local commercial register, the local office of business and standards and the professional association of the relevant trade.

Getting Electricity

Germany claims to have one the most efficient ways to give electricity to business in the world, which requires only three steps and would take just 17 seven days compared to the OECD average of 98.

Getting property registered

Another task loaded with officialdom is the registration of property in Germany, as companies must get approval from the Land Registry and notarize the transfer agreement before obtaining a waiver of preemption rights with the municipality and paying transfer tax which takes about 40 days to complete.

Getting Credit

Germany is home-grown to a contemporary financial sector that operates within a strict legal environment. So to get credit is a relatively streamlined process, though no collateral registry in operation. 


Germany’s fiscal system is notoriously difficult to navigate. Businesses have to contend with nine tax payments a year taking 207 hours of their time; social security contributions take 134 hours to deal with alone and corporate income tax and VAT payments can also be extremely time constraining. Altogether there are 14 different taxes that may be payable by businesses operating in Germany.


Doing Business in Germany without adequate cross-cultural awareness is a risky proposition, and businesses should ensure they carry with them an appreciation of both the business landscape and the culture. Hierarchy is valued in Germany and there is often a plethora of procedures and policies which can slow things down, so having a bit of patience is crucial to the success of business negotiations.  Therefore, the ball is now in your net to know if you can follow to the latter the rules, regulations and policies of the country before opening any Business.