6 important things to know if you are starting a business in Germany
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Germany is one of the world’s business hubs. People go there from all over to start businesses, make connections, and build reputations for themselves. Whether you are a German citizen or just want to go there to make money, there are some things that you need to know about starting a business.
If you do not take the time to do your research, then you could end up making a mistake. Mistakes are easily made by starting businesses anywhere in the world.
This post will tell you everything you need to know if you want to start a business in Germany.
Financial records
If you plan on starting a business in Germany, then it’s a good idea to keep meticulous financial records. One of the best ways to do this is to open a German bank account. A lot of business owners based in Germany do not hold German bank accounts. Instead, they choose to use online payment processors and accounts held with open European banks. One of the main advantages of opening a German account is that it’ll be easier for you to keep good financial records. When you are filing your taxes or dealing with your accountant, all you’ll need to do is provide a printout of your account’s annual statement. Ideally, you should open a business account. Business accounts have a lot of benefits, like cheaper transfer fees and cashback.
Paying taxes
You need to make sure your taxes are filed and paid on time, every single year. Unfortunately, the German government doesn’t make paying taxes easy. According to the expert accountants over at gmbhtax.de though, hiring an accountant can take the hassle out of having to deal with them. If you do plan on hiring an accountant, then shop around and do your research. Find the one who’s most qualified. You do not need to find one in your area, you can hire an exclusively online accountant. Online accountancy firms tend to be cheaper to work with than ones where you would be expected to go into an office to see them.
Online marketing
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Germany is a very popular place for people to go to start their own businesses. Because of this, it is highly competitive. Germany is also a very advanced country. Nearly everybody has access to the internet, even the nation’s poorest. Because of all of this, you need to take digital marketing very seriously. Your business’s digital marketing efforts will make or break you. You can hire a marketing agency to handle marketing for you. Your main areas of focus should be social media, SEO, and influencer marketing.
Speaking German
It doesn’t make any sense to move to Germany to start a business and not learn German. If you already speak fluent English, then German will be an easy language for you to learn. While it is true that a lot of Germans speak English, learning to speak German will make it easier for you to network and communicate with other business people. It’ll also make your daily life a lot easier since you won’t have to rely on online translators or hope that everybody you encounter speaks conversational English. You can take an online course to learn how to speak German.
Free movement
One of the best things about Germany is that once you have citizenship there (or even just a temporary business visa) you are able to move freely around the rest of the Schengen Zone. This means that you can expand your business into other European countries. Expanding throughout Europe can be a highly effective way of building your business’s reputation up and earning profits. However, make sure expanding is a good idea before giving it a go. You need to be confident that you have enough money to fund a continent-wide expansion. Expanding into other European countries can be very expensive, and very time-consuming.
Local economy
Wherever you are living in Germany, be sure to support the local economy. A lot of business owners move to Germany and other European countries to expand and then do not support the local economies of the countries that they are in. Try to eat out in small cafés and restaurants, shop at family-run grocery stores, and do everything you can to put money into your local area. Supporting the local economy can be your way of giving back to Germany. Be sure to immerse yourself in the culture and get to know the locals, too.
Germany is a fantastic place to go if you want to make your fortune. As long as you know the German language, have a good business idea, and have enough money to get started, then you’re guaranteed to find success there. Give the points made here some thought, so your business has the best chance at success.
