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Expansion from Germany to a Foreign Country (Outbound Investment)
You want to sell your German products or offer your services abroad? Nowadays, just your own or your employee’s occasional stay there is not sufficient and further efforts are required to expand your company into another country.
Expansions Create Long Lists of Questions
Maybe you would have had to register in another country as an entrepreneur subject to VAT long time ago. Or perhaps your employee has already been on site for a while and is now obliged to tax their income there, or you are already obliged to pay social security contributions in the other country? Maybe your construction site or assembly facility had already been there for more than 6 or 12 months and you have – unknowingly – set up a permanent establishment there?
Representation Office, Registered Branch Office or Subsidiary?
Different options such as representation office, a registered branch office or a subsidiary are available. In case you have decided on setting up a subsidiary, the following questions will inevitably come up. What is the best legal form? How long does the set-up process take? How expensive is the set-up and what are the requirements? Is a foreign partner or managing director required? What are the standard wages in this country? How high are the taxes? Can I relocate individual areas of operation such as production to the foreign country without having to pay taxes in Germany due to transfer of functions? Can I extract profits without any problems? You should know the answers to such questions in advance.