Expanding into
Germany
Expanding into Germany – which is characterised by a highly-skilled and efficient international workforce, intricate employment and tax laws, and a first-class communications and transport infrastructure network linking the country to the rest of Europe and boasting the title of Europe’s No. 1 logistics market – can bring excitement to the possibilities, but also significant stress to ensuring the entity with the country’s rigid legal structures and laws. Ensuring compliance without sufficient knowledge of the country’s laws also adds stress to getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved.


Get the Support You Need
Global Expansion is a step to make for any business, regardless of your goal. But the opportunities that can come with an expansion can be stimulating as well as intimidating and confusing, especially when you consider all of the registration procedures that need to be done and the documentation required.
Going at it without the proper support can increase the costs, time and risks involved.
The legwork and potential red tape can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, primarily through our Employer of Record (EOR) framework.
It can be best utilised when businesses are just beginning their expansion process and require more information before incorporating an entity and fully establishing themselves in that market.
Hiring Staff
in Germany
Germany is one of the founding members of the European Union and the Eurozone. It ranks 9th in the 2020 Global Innovations Index and 7th in the 2019 Global Competitiveness Index, both published by the World Economic Forum and IMD. It is Europe’s strongest and largest national market, the fourth largest in the world by nominal GDP, and the fifth largest in the world by GDP or PPP.
The country’s economy is based on the social market economy, which is highly diversified and places equal focus on services and industry. Its influence stretches throughout Europe and beyond – Germany is one of the largest exporters globally, recording exports of goods and services of over EUR 1,600 billion in 2019.
Geographically, Germany is ideally placed within the European continent and holds state-of-the-art logistics and communications networks. This includes a strong and world-renowned transportation infrastructure of airports, railways, ports, and highways that connects the country domestically and internationally.
Germany is one of the main gateways to European talent for companies expanding abroad and serves as a magnet for business ventures from the United States, Australia, and Asia. World-renowned companies such as Allianz, Diamler, BMW, SAP, and Volkswagen are headquartered in Germany. It is also the world’s top location for trade fairs.
Regarding production, Germany possesses the largest manufacturing economy in Europe. It also invests in a strong research and development infrastructure with practical industrial value, gaining a reputation as the bridge between current university insights and industry-specific improvements.
Germany also focuses on the future, embracing innovation, sustainability, and digitalisation. The EU Innovation Scoreboard (2021) ranks the country highly in human resources, information technology, research and development, and environmental sustainability.
Small and Medium-sized companies, referred to as the “Mittelstand“, primarily drive Germany’s economy. These 3.5 million SMEs account for over 99% of Germany’s businesses and contribute to half of the country’s GDP, providing almost 60% of the jobs.
German SMEs have long been celebrated for contributing to innovation and technology, locally and abroad. Recent studies commissioned by the Federal Ministry of Economic Affairs and Climate Action demonstrated that with a focus on adopting new trends such as digitalisation – and access to skilled labour despite potential shortages – SMEs could remain competitive in specialised market sectors, keeping Germany at the forefront of industry success worldwide.
Every year, over 300,000 new companies open up in Germany. The “GO! start-up” campaign aims to encourage more people into entrepreneurship – especially those underrepresented, such as women or migrants wanting to break into the start-up scene.
German SMEs have access to ample funding options, thanks partly to the government’s allocation of EUR 2 billion towards venture capital. This includes the ERP/EIF Growth Facility (€500 million), the Coparion Co-Investment Fund (€225 million), and an increase of up to €1.7 billion in volume for the ERP/EIF fund of Funds! In addition, measures are being taken by Germany to encourage a more favourable fiscal environment for investments and to facilitate young companies’ listing on the stock exchange – all crucial elements for SMEs to remain competitive today!
Steuernummer – Tax Number (Businesses)
Umsatzsteuer ID – VAT Number
Sozialverischerungsausweis – Social security ID
Main Suppliers: China (11.9%), the Netherlands (7.6%), the USA (6.1%), Poland (5.7%), Italy (5.4%), and France (5.2%).
Hiring Staff
in Germany
The country’s economy is based on the social market economy, which is highly diversified and places equal focus on services and industry. Its influence stretches throughout Europe and beyond – Germany is one of the largest exporters globally, recording exports of goods and services of over EUR 1,600 billion in 2019.
Geographically, Germany is ideally placed within the European continent and holds state-of-the-art logistics and communications networks. This includes a strong and world-renowned transportation infrastructure of airports, railways, ports, and highways that connects the country domestically and internationally.
Germany is one of the main gateways to European talent for companies expanding abroad and serves as a magnet for business ventures from the United States, Australia, and Asia. World-renowned companies such as Allianz, Diamler, BMW, SAP, and Volkswagen are headquartered in Germany. It is also the world’s top location for trade fairs.
Regarding production, Germany possesses the largest manufacturing economy in Europe. It also invests in a strong research and development infrastructure with practical industrial value, gaining a reputation as the bridge between current university insights and industry-specific improvements.
Germany also focuses on the future, embracing innovation, sustainability, and digitalisation. The EU Innovation Scoreboard (2021) ranks the country highly in human resources, information technology, research and development, and environmental sustainability.
German SMEs have long been celebrated for contributing to innovation and technology, locally and abroad. Recent studies commissioned by the Federal Ministry of Economic Affairs and Climate Action demonstrated that with a focus on adopting new trends such as digitalisation – and access to skilled labour despite potential shortages – SMEs could remain competitive in specialised market sectors, keeping Germany at the forefront of industry success worldwide.
Every year, over 300,000 new companies open up in Germany. The “GO! start-up” campaign aims to encourage more people into entrepreneurship – especially those underrepresented, such as women or migrants wanting to break into the start-up scene.
German SMEs have access to ample funding options, thanks partly to the government’s allocation of EUR 2 billion towards venture capital. This includes the ERP/EIF Growth Facility (€500 million), the Coparion Co-Investment Fund (€225 million), and an increase of up to €1.7 billion in volume for the ERP/EIF fund of Funds! In addition, measures are being taken by Germany to encourage a more favourable fiscal environment for investments and to facilitate young companies’ listing on the stock exchange – all crucial elements for SMEs to remain competitive today!
Steuernummer – Tax Number (Businesses)
Umsatzsteuer ID – VAT Number
Sozialverischerungsausweis – Social security ID
Main Suppliers: China (11.9%), the Netherlands (7.6%), the USA (6.1%), Poland (5.7%), Italy (5.4%), and France (5.2%).
The Main Sectors of the German Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
The Main Sectors of the German Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Commercial Laws in
Germany
Commercial Laws in
Germany
