Companies intending to expand their business and desires to be present in Germany has several options to fulfil their business objectives. Typically, they can either set up a real German company, or register a branch office in Germany.

Setting up a company in Germany

Initially, your business activities, tax implications, personal liability and long term financial and business goals are major aspects that will affect your selection of an appropriate legal structure. Thus, it is essential to decide on a right legal form when starting a business in Germany. In most cases, the best option to establish a company in Germany would be a Limited Liability Company (GmbH).

After selecting the appropriate legal form, you need to set up and register your business enterprise. Depending on the legal form of your business, you need to consider your registration duties in terms of Commercial Register, Trade Office Registration, and Chambers of Industry and Commerce (IHKs).

Basically, the most suitable form of organization for a mid-sized enterprise in Germany is the Limited Liability Company (GmbH) which requires a minimum share capital of 25,000 Euros (but, only half of this amount must be paid in to start business). It is the most popular company form in Germany and protects its shareholders from personal liabilities. In this case, the owners of the business are not personally liable for the company’s debts.

Therefore, registering your business as a GmbH offers more legal benefits, in particular it can protect your private assets, because shareholders are merely liable with the assets of the company. Besides legal benefits, GmbH form can provide practical benefits to shareholders as well. Typically, GmbH structure has stronger international reputation in terms of public image of reliability, it allows greater flexibility in raising the company’s share capital. GmbH structure offers tax benefits because managers can declare their salaries and pensions as business expenses. It also gives the managers the opportunity to apply special tax deductions such as leased cars and fuel expenses.

Registering a branch office

It is also possible to set up a branch office of an existing foreign company. This is not considered a separate legal entity but a dependent office, and accordingly the German branch is subject to local legislation and tax law. In this case, business owners are required to register with the local commercial register  through a German notary and submit a business notification form in order to notify relevant authorities about your business activities.

Brand development & Creating evidence of distinction

Brand development is the process of creating a brand’s unique feature, and emphasizing what makes it different from others through communicating about the brand’s distinction. It reflects the reputation of a company and its visibility in the market.

Basically, a company’s brand is its pledge to its customers and considered the most valuable asset of each company. It tells your customers what differentiates your products or services offerings from your competitors. A company’s brand primarily tells who they are, and how they should be perceived by their customers.

A strong brand should have an evidence of distinction, as it proves company’s distinction and justifies its positioning.  A strong brand should determine what it does differently, and deliver the brand’s evidence of distinction across all marketing and communication networks. How a company manages its business is closely related with how it manages its brand. However, marketing and advertising activities do not create the brand, they are just the tools of communication, and building a brand requires more actions than a logo and a motto.

Developing a reliable brand strategy involves producing an overall business approach, identifying target clients clearly, understanding your target client’s needs and priorities, developing your brand positioning for your target and potential clients, creating your message, website and marketing strategy, and implementing brand development strategy and making adjustments when necessary.