Prospects for new company formations in Germany

By Emma Frisbey, 27th June

There’s no doubt that economic times are tough in America. The rest of the world, too, faces a global slowdown in respective economies. But, according to news sources, Germany, with its growing business confidence, is staying afloat and prospects for new company formation in Germany are looking better than ever.

According to an article in the Wall Street Journal, German business confidence rose in June for the first time since February, defying analyst expectations. Gross domestic product is expected to rise above 3 percent, economist Klaus Abberger said in the article, and expects the euro to strengthen in the future.

Carsten Brzeski, an economist at ING Bank NV, told the Journal, “Count on Germany. While euro-zone leaders are still discussing ways to solve the sovereign debt crisis, the German economy seems to cruise along unaffectedly.”

And, according to UHY.com’s guide to doing business in Germany, unemployment rates have also been steadily decreasing since 2006. In July 2010, the unemployment rate was 7.6 percent, while the average in 2009 was 8.2 percent.

Statements and news like this means that now is a great time for company formation in Germany.

Ease of Company Formation Germany Offers

Much like English-speaking countries, German company registration requires business owners to register their companies as: GmbH (limited liability company) AG (joint stock company), GbR (one-person business or based on a contract agreed upon by two or more persons), Zweigniederlassung (subsidiary), or OHG (partners involved have unlimited liability and are obligated to operate the business depending on the contract).

For those interested in company formation Germany offers help in the form of websites designed to facilitate the process of German company registration and the entire company creation process. Websites like EuroCompanyFormations.com offer packages that include a multitude of corporate services like tax planning, bank account setup, logo and web designs, trademark registration, assistance in obtaining visas and work permits, and much more.

It may be some time before America gets back on track with the signs of a fruitful economy. It may be daunting to even think about starting a business in a foreign land, but with incentives and good economic signs of recovery and progress, starting a business in Germany could be a great fit. And, with help of
european company formation services, those willing to take the chance can count on someone in their corner throughout the process.