When foreign investors have to meet market and increasing administrative requirements in Germany the demand for a stronger presence of the enterprise in Germany will often increase as well. In many cases, establishing a fixed place of business or a facility represents the only way to support investors in meeting these requirements and to serve the business operations in Germany. Typically, this would be addressed by the formation of a permanent establishment in Germany.
A second benefit to mention is that both the setting up and the liquidating of a permanent establishment is easier and therefore more flexible than incorporating or liquidating a regular legal entity in Germany. Due to this fact a permanent establishment may already be profitable even though a foreign investor only wants to enter into a short period of business engagement in Germany.
At some point in time a representative in Germany might become necessary instead of a fixed place of business or facility to successfully continue the business operations of a foreign enterprise . In many cases the incorporation of a new business is also required to support the business growth strategy in Europe.
Counselhouse can help foreign investors to evaluate an individual business model and will provide guidance to identify and establish the right investment option in order to successfully touch ground in Germany and Europe. Counselhouse does not provide legal- or tax advice.