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Naturally in Schleswig-Holstein, Germany's "True North".

Germanys's northern-most federal state lies at the heart of Europe on the main north-south axis to Scandinavia. Enjoying direct access to the North Sea and the Baltic Sea, Schleswig-Holstein is an important transport hub for northern and eastern Europe and the entire Baltic region. Close proximity to Hamburg also ensures fast access to markets throughout Germany and worldwide via all transport routes. 

Schleswig-Holstein is a state of SMEs, with 99 % of its companies small or medium sized enterprises. 

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Economic powerhouse  
Germany is one of Europe’s economic growth engines. Investors benefit from the strong economic performance of the world’s third-largest economy, huge domestic market demand and immediate access to Europe’s other growth markets.  

Haven for foreign investments  
Germany is one of the world’s three largest export nations behind China and the US after many years of being #1. With € 469 bn in foreign direct investment, Germany is astrong investment magnet and a top region for foreign investors.  

Cost-effective production location  
Germany has one of the world's highest productivity rates. What's more, the quality of its work and steadily decreasing unit labour costs make it a fiercely competitive location. Social and market reforms are contributing to continuing economic growth and making Germany one of Europe’s most cost-effective production locations. 

Well-trained workforce  
Germany's world-class education system delivers to the highest standards. 81 % of the population have been schooled to university entrance level, or have a recognized vocational qualification – well above the OECD average of 67 %.  

Driver of innovation  
In Europe’s # 1 research country, German R&D is backed by billions of euros in federal funds each year, making it one of the world’s innovation leaders, but also Europe’s leading patent applicant and the driving force behind high-tech breakthroughs. 

Unmatched infrastructure  
Located right at the heart of Europe, Germany is its # 1 logistics market. A highly developed energy and communications infrastructure and excellent transportation networks guarantee on-time delivery and short routes to success. 

Wealth of incentives  
Germany offers inviting incentives to all investors as many attractive programs support the entire spectrum of business activities at every stage of the investment process. This support ranges from cash incentives as reimbursements for direct investments to job and R&D incentives. 

Great investment security  
Highly developed economic and political structures mean investments in Germany are safe. Germany’s judiciary and civil service institutions are professionally regulated to ensure the highest level of service. So contracts are secure and intellectual property rights strictly protected.  

High standard of living  
German society is modern ,tolerant , and cosmopolitan with one of the world’s highest standards of living. Superior healthcare and education, endless leisure opportunities in beautiful surroundings and a vibrant cultural scene are but a few reasons why more than seven million foreigners call Germany their home. 

More information: https://germanyworks.com/

Green energy hub
With over 180% of Schleswig-Holstein's energy needs covered by renewable energy, this state is a leader in green energy production and usage

Digital progress
79% of households have access to 1,000 MBits/s broadband or a fibre optic network, one of the highest digital coverage rates in Germany

Gateway to European markets and direct access to the North and Baltic Seas
With Germany a member of the EU, Schleswig-Holstein offers direct access to more than 500 million consumers in the world's largest economic area, that accounts for 16.5% of global GDP. 

Partnerships across Northern Germany
Schleswig-Holstein is part of Hamburg's Metropolitan Region, and a key partner in HY5, Northern Germany's Green Hydrogen Initiative, and is driving innovation across Northern Germany. 

Leading in applied innovation
Home to multiple universities and research institutes, (e.g. Fraunhofer ISIT or GEOMAR), Schleswig-Holstein has had a strong tradition of applied research since the 1960s when Germany's first university of applied science was founded here. 

Work-beach balance
Here you can enjoy outstanding quality of life between two seas with business success thriving in near-coast living and fresh sea breezes.

There are several ways to start a business in Germany: 

Founding a new company: 

• Subsidiary corporation: GmbH/UG, AG, KGaA
• Subsidiary partnership: GbR, oHG, KG
• Mixed forms: GmbH & Co. KG

Branch of a foreign company: 

• Independent branch office
• Dependent branch office

Founding a subsidiary

In Germany, foreign companies can select various legal forms when founding a subsidiary company. The most popular form is the limited liability company, or Gesellschaft mit beschränkter Haftung (GmbH). 
• The minimum share capital is €25.000, which can also be in the form of contributions in kind. Proof that half the capital has been contributed is sufficient for an entry in the Commercial Register. 
• The shareholders liability towards creditors is limited to the amount of share capital. A GmbH needs two corporate organs: one or more managing directors , and an annual general meeting. 
• Managing directors manage and represent the company to the outside world. 
• Managing directors are subject to shareholders' imstructions and are bound by their decisions. 
• The nationality and residency of the managing director are irrelevant. 
 
The entrepreneurial company with limited liability, or UG (Unternehmergesellschaft haftungsbeschränkt), is a special corporate form as an entry-level variant of the GmbH. 
• The minimum share capital is €1. 
• An UG must build up share capital and provide for a reserve every year at least a quarter of the annual net profit. 
• As soon as the minimum share capital (€25,000) required to form a GmbH has been accrued, the UG can be transformed into a GmbH 

Founding a branch office 

• Foreign companies can also found a branch office in Germany. Unlike a subsidiary, a branchoffice is legally part of the headquarters company, and has no separate legal persona. 
• Independent branches have a certain degree of organisational autonomy in relation to their head office: 
  • Own management with authority to act and power to conclude agreements 
  • Own business assets 
  • Own bank account 
  • Independent bookkeeping 
• The branch can add its own name as a suffix to the name of the main company headquarters. 
• No minimum capital is required. 
• The foreign headquarters are responsible for the branch’s liabilities, to the full extent of their assets. 
• Dependent branches are: 
  • Subordinate departments of the main company 
  • Dependent on the main company 
• Correspondence and invoices are issued in the name of the headquarters 
• No entry in the commercial register is required, the business has only to be registered at the local trade office. 

Citizens of the EU, of the EEA member states Norway, Liechtenstein and Iceland and of Switzerland may live and work for an unlimited period of time in Germany. They do not require a visa or special permit. 
 
Visa-exempt states:
Nationals of certain countries can enter Germany for short visits of up to 90 days without a Schengen visa. These include, amongst others, nationals from Argentina, Australia, Brazil, Chile, Israel, Japan, Mexico, New Zealand, Canada, South Korea, USA, Singapore and Hong Kong. If they intend to stay for longer than 90 days , or work in Germany, a national German visa is required for entry. Exceptions apply here too for nationals from Australia, Israel, Canada, Japan, New Zealand and South Korea, who may enter for up to three months without a national visa. 
Detailed information is available from the German Foreign Office. 
➜ www.auswaertiges-amt.de 
 
VISA
 
Non-EU citizens: 
Nationals of non-EU countries require a visa to enter Germany. A distinction is made between: 
• Schengen visas and national visas 
• Residence and permanent residence permits 
The type of residence permit required depends on the applicant’s country of origin, the duration of the stay and the proposed activity in Germany. 
 
Schengen visas:
For short stays in Germany of up to 90 days, non-EU citizens require a Schengen travel visa or business visa. Normally, all the necessary steps for setting up a business in Germany can be implemented if you have such a visa. A Schengen visa is usually issued by the respective German embassy or consulate in the applicant’s country of origin. 
 
National visas: 
For stays in Germany of more than 90 days, a national visa is required for entry purposes. This is issued by the respective German embassy or consulate. A residence or permanent residence permit is required for a longer stay. 
 
Residence and permanent residence permits 
Entrepreneurs from non-EU states who operate their business in Germany as self-employed persons need a residence permit for self-employed activity. 
 
The only exception here is that if the self-employed activity is not carried out for more than three months, a Schengen visa may be sufficient. 
 
Self-employed entrepreneurs will generally receive a residence permit if the following criteria are met: 
• An economic and/or regional interest exists
• The investment project is expected to have a positive impact on the economy
• Financing is secured
 
The local immigration authority will individually check each investment project to determine whether these conditions are met. In particular, they will evaluate: 
• If the business idea is viable
• What business experience the investor has
• How much capital is to be invested
• What impact the investment project will have on the (regional) employment and vocational training situation
• What contribution to innovation, research and development in Germany may be expected. 
 
The residence permit for self-employed persons is limited to a fixed term, mostly for up to three years. If the investment project is successful and the project's success and the livelihood generated seem to be secure, permanent residence may be applied for after three years. 

VAT 
Value-added tax (VAT) is payable on the sale of goods and services. Companies are obliged to add VAT to their prices for deliveries or services and to charge this sales tax to their customers. 
 
The general VAT rate in Germany is 19%, i.e. below the average rate in Europe. For basic items and everyday services such as food, newspapers or public transport, a reduced VAT rate of 7 % applies. A sales tax exemption exists for certain services, such as banking, health services or non-profit work. 
 
Companies that pay VAT on goods and services can offset these amounts against the VAT collected on invoices. As such, the actual VAT burden lies solely with private consumers.
 
Business tax 
Business tax is an income tax on the profits of businesses. The respective business tax rate is made up of two 
components: 

• Base tax rate (3.5 % nationwide) 
• Trade tax rate (varies locally). 
 
Base value for tax purposes = taxable income of the company x tax base rate (3.5 %) 
 
Base value for tax purposes x local trade tax rate = business tax due 
 
The trade tax rate is determined individually by each municipality. In Schleswig-Holstein, the trade tax rate is between 285% and 450, with the rate tending to be higher in urban than in rural area. There is no solidarity surcharge on business tax.