Germany is one of the world’s financial hubs. If you are planning on starting a business, then there’s nowhere better in Europe. Not only is Germany one of the world’s most stable trading economies, but there are also strong legal protections in place, which protect business owners, enforce their rights, and ensure that they are not mistreated or scammed.
However, there are many other reasons why Germany’s a good place to get started beyond those just mentioned. If you are planning on getting started there, then here are six reasons why that’s a good idea.
Legal Protection
One of the main reasons that people turn to Germany when they want to start a business is because of the strong legal protections in place, preventing business owners from being taken advantage of or scammed. As mentioned in this post’s introduction, German businesses have their rights enforced by the government. If any fraud is committed against them, then business owners have the full backing of the German authorities. Cybercriminals are prosecuted to the full extent of the law. If you are a business owner, then you always need to keep fraud in the back of your mind. It’s something that’s becoming a lot more common. In some countries, the police do not have the time (or the means) to investigate it. This is not the case in Germany, where police departments have their own special fraud units.
Filing Taxes
Filing taxes is a headache wherever you are. In Germany though, it’s a little simpler. However, despite being simpler it’s still a lot easier to just outsource your tax needs to an accountancy firm. Finding GmbH tax services shouldn’t be too difficult. As far as tax actually goes, Germany has very reasonable tax rates. At the moment they are a little higher because of what’s going on with the nation’s economy (i.e., the cost of living crisis) but they are still much lower than they are in other European nations. Taxes are always something to take into consideration when starting a business for the first time.
Positive Reputation
Germany is known all around the world for being a global business hub. Because of this, starting a business there will add to your reputation. You will be seen as more authentic and much more desirable. Again, part of the reason why Germany is seen as such a good place to start a business (and why people like doing business with German companies) is because of the legal protections in place. If somebody gets scammed by a German company, they are almost guaranteed their money back, thanks to the nation’s strict fraud policies.
Global Business
Because Germany is a global business hub, it’s a great place to meet other business owners and do some networking. If you want to network with other business owners then you might want to consider renting a shared office. A shared office can be a very effective place to meet other local businesses. Shared offices are large buildings where business owners rent desks. More often than not, they come with mailboxes, receptionists, and free access to the internet (and sometimes even computers). Shared offices can be found all over Germany and are very popular. You can also network on LinkedIn.
Simple Incorporation
In terms of actually starting a business, there’s nowhere easier to do it than in Germany. The incorporation process is extremely straightforward. All you have to do is register your business online, and you’re ready to go. However, you should know that there are different business models in Germany, as there are in many other European nations. If you do want to start a business, then you need to be sure that you’ve selected the most appropriate model for your business. Choosing the wrong model could mean you end up having to pay more tax.
Free Movement
Finally, when you start a business in Germany you then have freedom of movement into all of the other Schengen Zone countries, like France, Italy, and Spain. All of the Schengen Zone countries are very popular business hubs. Germany is essentially a gateway into the rest of Europe. If you want to expand internationally, then basing yourself in Germany will help you to then make inroads into the rest of the continent. Bear in mind, you will need a visa if you want freedom of movement. Once you have a German visa, you can then enter all of the other Schengen Zone countries. If you do not have a visa, you can’t.
Germany is a great place to start a business. It’s safe, friendly, and trusted. However, starting a business of any kind can be difficult at the best of times. Make sure to outsource your marketing, accountancy, and human resources. Outsourcing these departments will save you money and allow you to focus on more important things, like making sales.
