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5 reasons to set up a business in Germany

1. Strong: a dynamic economy

Significant spending power, the spirit of innovation, its location at the heart of a dense transport network in the centre of Europe and highly skilled workers – all of these are benefits offered by Germany as a business location.

Science and research with a practical orientation and well-trained qualified professionals have generated an excellent environment for innovation – and as a result, Germany is one of the European leaders with 62,105 patent applications in 2020. Thanks to a per capita spending power of €23,766 Germany ranks among the countries with the highest purchasing power in Europe – new ideas easily find a market here.

Many of these are generated by what is known as the Mittelstand. The Mittelstand is formed by the scores of small and medium-sized companies which are characteristic of Germany’s economy.

The German infrastructure will also make it easy for you to set up your own business. Roughly 830,000 km of roads, 38,000 km of railways and a modern telecommunications network will take you, your ideas and your products to your destination.

2. Stable: a good home for your ideas

As an entrepreneur in Germany, you can expect a stable political and economic environment for your ideas, which are protected by the law.

Inventions, company logos and concepts – in Germany, your intellectual property is protected. The Copyright Act, Patent Law and Trademark Law are all designed to safeguard what is probably your most valuable asset.
Economic policies also focus on protecting excellent ideas: Competition Law, for example, ensures that your competitors cannot make false claims about your products in order to attract customers for themselves.

Germany not only defends the freedom of competition, but also the freedom of its citizens. The basis for this is the liberal democratic basic order which determines that the people elect their representatives while the separation of powers prevents the abuse of power.

These are the reasons why the German economy is as stable as it is: between 2015 and 2020, the number of employees subject to social insurance contributions rose by almost 3 million to around 33.3 million.

 

Info box:

Germany offers great perspectives for internationally operating companies planning to expand to Germany by setting up a subsidiary or a branch office. Detailed information and support can be found on the website of Germany Trade & Invest

3. Open-minded: your cultural background will help you attract international customers

You are not just an expert in your field, you are also familiar with the culture of your home country. That is certainly an advantage.

Germany is a country of immigration. In 2020 alone, more than 1.2 million people from abroad came to live in Germany. In most cases, immigrants have particular desires and wishes, and you may be more familiar with them than most Germans. Perhaps this could be the starting point of a business idea?

Your knowledge of language and culture might be the key to international business partnerships. 11 percent of German companies already export abroad; 97 percent of these are small and medium-sized enterprises. Maybe you already came across one of these companies. Use these contacts to set up your own business.

4. Helpful: you will receive professional support and funding

Once you come up with a business idea, it will serve as the foundation for your own company. There are numerous information centres offering comprehensive advice on setting up your own business, what the best approach is and where you can obtain funding.

All German states have professional information centres for entrepreneurs in the making – and advice is free of charge. There is also a huge choice of start-up initiatives. These will help you find suitable networks and will assist you in questions related to funding and other subjects. Government support programmes may provide funding, too. For an overview, click here.

You can also obtain valuable advice from other international entrepreneurs, whom you might meet in start-up networks or at information centres.

5. Diverse: become part of a diverse society

If you decide to set up your business in Germany, you will be choosing a country offering a high quality of life. In addition, Germany’s culture, the diversity of its people and its family friendliness make the country extremely attractive.

More than 10 million people from other countries call Germany their home. This co-existence of various cultures and religions has given rise to a lively, international arts and culture scene. A high quality of life and a stable democracy also contribute to peaceful coexistence in Germany.

Family plays an important role, too: More than 11,6 million families with children live in Germany. Policy-makers and companies take your personal interests very seriously. This means that parents have many ways of reconciling work and family life. From the age of one, children in Germany are generally entitled to a place in childcare, for example.

 

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