The ability to communicate in German, when you want to open a new market in Germany, opens the doors to successful business contacts.
If you have decided to enter the German market, it is not only important to have good communication skills but also to have good knowledge in the areas of taxation and law.
For this reason, we recommend you to search for a German accountant or lawyer in order to get all the information you need before setting up business in Germany.
What you need to think about in Germany are: - Choosing an appropriate corporate and legal form
- Registration of sales tax
- Notification to social security
- Registration of Income Tax
- Notification of tax reduction in cross-border activities
- Transfer Pricing questions
Establishment of foreign firms in Germany often turn out to be a time-consuming, administrative work and is often compared to other international countries to be very complex. But the reward has been one of the largest and well-developed markets in the world.
Because the corporate tax rate was lowered from 25 percent to 15 percent in 2008, Germany became even more attractive to businesses.
It should be mentioned that regional tax on business can vary between 10-14 percent, and the total tax burden of limited companies with 26 - 30 percent make Germany competitive useful in comparison with industrialized nations.
Last but not least, the so-called solidarity supplement charge of 5.5 percent on corporate or income tax will be raised. As it is right now, is it on its highest level and Germany's highest court reviews whether this is legally correct.
Cecilia Helland