Believe it or not, Germany has over 80.6 million people in their population and it happens to be the fourth largest account in the European Union.
So, you own a business and you want to expand it to Germany? There are several steps you can take to do so. First and foremost, you need to follow all legalities before you progress with this endeavor.
We highly advise you to brush up on German laws, otherwise, you may wind up in tax trouble and you may encounter many other legal issues along the way.
In this guide, we will explain why you should expand your business to the German market. The fact that the German economy is a big market should be a good enough reason to want to expand your business.
Starting a company in Germany starts with following the proper principles of a free market. If you are wanting to expand your business to Germany, right now, 2018, now is a great time. Keep in mind, it is always essential to have a knowledgeable tax advisor when you are bringing businesses overseas to new countries with different sets of laws. The tax laws are entirely complicated in Germany, and unless you are a tax genius, you should certainly seek appropriate advice.
Even if you are a tax professional, you always want to have another set of experienced eyes examine your paperwork, because one little mishap could cost you loads of fines.
It will take over three months or so to situate your business in Germany as there are plenty of financial filings needed, similar to starting a company for the first time.
In order to expand your business, you will need at least 25,000 €; basically, you can’t start doing business until this amount is deposited into the bank in Germany. You’d better make sure that you have the capital to move to Germany, otherwise, this endeavor will be impossible.
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Global PEO Can Aide Expansion
The Global Professional Employer Organization model (PEO) often helps all sorts of companies when they want to expand on an international level. This organization follows the law according to the books, which is exactly what you need when you are a business owner.
If you are wanting to move your business over to Germany, then you should look into a (PEO), especially if you only have one or two employees on your payroll. This type of organization can simplify the expansion of your business as a whole.
All PEOS require an AUG license. Be sure if you utilize this route, the company you do business with has this license.
Germany — A Diverse Market
Luckily, the German market draws a lot of business and is known for its innovative products and start-ups, along with its tactful marketing strategies that are proven.
Internet access in Germany is highest in the EU, compared to other nearby countries. As a business owner, you of all people know how important it is to be connected with the globe for business reasons.
Just knowing that Germany offers the most accessibility when it comes to communication is another reason why you should choose to expand your business to Germany, especially if you are thinking of moving your company somewhere in the EU.
Since the markets in Germany are so diverse, you should venture into this new ball game, as a lot of capital can be made from being present within a population of 80.6 million people.
Branching out and getting in front of a whole foreign market that speaks English can prove to be extremely lucrative over the years; you never want to keep all of your eggs in one basket.
Growth In Germany
According to market research that was conducted by export.gov, the German market is set to grow to 1.8% in 2018. If expanding your business to Germany is on your agenda, then it is important to note that Germany is currently offering very low interest rates.
You should also take note, even when the world’s market goes down, Germany’s market continues thriving.
According to startupoverseas.com, Germany rakes in over 2 trillion in sales per year (Euros), meaning, the goods and services sector is booming. With these large sales numbers, who wouldn’t want to expand their business to Germany?
Quick Facts on Why You Should Expand Your Business to Germany
- Germany is the leader when it comes to exporting merchandise (in the EU)
- The economy is the largest in the EU
- Mechanical engineering, IT companies, and nanotechnology is constantly expanding
- Germany is home to large automotive companies such as BMW and Mercedes
- The economy is growing 1.8% in the year 2018
- Germany rakes in over 2 trillion in sales per year (Euros)
- Germany has very few restrictions when you are starting your company
- Most of Germany’s population speaks English
Before you decide to position your money and time into the German economy, you must do copious amounts of research and seek proper guidance and advice before you plunge forward. The question is, why wouldn’t you want to expand your business to a market that is set to grow year after year?
After all, if you are expanding your company from the US to Germany, language barriers will least likely exist, meaning, there should be no excuse if you have the capital to expand.
As the saying always goes, ‘you gotta spend money to make it.’ Expanding to Germany will only be beneficial if you do your diligent research and proper filings.
However, there is an alternate approach to gaining a foothold in the German markets without the bureaucratic hurdles, leasing property, and other red tape – virtual phone numbers. Virtual phone numbers are phone numbers that function just like phone numbers in Germany, but virtual phone numbers route calls (via “call forwarding”) to a destination phone number, which can be located where you normally conduct your business (and anywhere around the world).
By subscribing to a virtual phone number through a company like Global Call Forwarding, you allow customers to reach you on their terms and your terms, utilizing efficiency and building rapport that international phone numbers lack.