Business & Finance Entrepreneurship-startup

How Do I Start an American Manufacturing Company in Germany?

    • 1). Apply for a German settlement permit, or "Niederlassungserlaubnis," from the German Foreigners Authority. A business plan must be prepared and provided to the Commerce Department of the German state the applicant plans to do business in. Additionally, a resume and proof of professional experience and qualifications should accompany the business plan.

    • 2). Visit the Germany Trade & Invest organization's German business portal, at German-business-portal.info. This site describes specific business opportunities in Germany, provides information on how to obtain work permits and understand which tax and import regulations may apply to the products you want to manufacture in Germany. The website also provides links to contacts that are relevant to setting up a business in your desired field.

    • 3). Familiarize yourself with taxes and duties that might be applicable to your manufactured products. This includes customs procedures, taxation on import sales and possible exemptions. Germany's value added tax allows exemptions for small businesses within certain limits, and commerce in specific sectors of businesses such as education, health, real estate and financial services.

    • 4). Review import regulations for Germany, especially if some of the inputs to your manufacturing process will need to be sourced from other countries. This includes regulations on packaging, dangerous substances and electronic and electrical equipment. Additionally, certain product and food safety regulations exist, as well as overall hygienic requirements to protect against imported pests or diseases.

    • 5). Research how Germany's business norms and standards apply to your manufactured products. This includes environmental labeling and electrical labeling that shows the equipment complies with Europe's WEEE standards. Germany also has its own standardization markings that resemble ISO (international organization for standardization) markings. These markings are not mandatory but may be necessary as part of a competitive marketing strategy depending upon the product manufactured.

    • 6). Complete business registration steps, which include registering your company with Germany's Commercial Register. Any business in Germany that generates more than €250,000 ($363,084 USD at press time) in revenue or more than €25,000 ($36,308 USD) at press time) of profit, must implement commercial accounting practices that are governed by Germany's commercial code. The Commercial Register also requires documentation on your firm's official name and address, along with corporate objects, owners, partners and shareholders, as well as annual financials, information on legal representation and procedures to follow if the company becomes insolvent..

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