Foreigners who decide to open a company in Germany usually pursue two main goals. The first and most common is to eventually relocate to this stable European country. The second is to develop and expand their business. A German company will command more trust than any business registered in the CIS countries.
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If you decide to open your business in Germany, you have two options: either register it from scratch or buy an existing one. We offer an objective comparison of these options — their advantages and disadvantages.
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Some entrepreneurs do not want to buy an existing company in Germany. After all, consider that it is like buying a used apartment or car. It seems better to invest money in something new rather than overhaul something old. But does this comparison apply to business?
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In fact, it does not. The advantages of starting a new business mainly lie in the moral aspect. You will be aware that you are the creator of something new, unique, and perfectly suited to your needs and parameters. Other advantages include:
These are probably the only advantages. The rest are drawbacks. You automatically assume all the risks of entrepreneurship, must take responsibility for any mistakes in document submission to German authorities, and will need to spend considerable time for the company to gain any credibility in the international market.
If you are worried that you won’t be able to find a ready-made business suitable for your activity, we recommend not even thinking about it. The structure of the company, its legal address, and its form can be changed during the re-registration of the business to your name. So, essentially, if you find a good and inexpensive intermediary with an excellent reputation, the only advantage left is the satisfaction of creating the company yourself. After analyzing potential costs and expenses, it becomes clear that moral satisfaction is not enough to justify taking such risks.
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As for choosing an intermediary for buying a ready-made company in Germany, we recommend us without false modesty. INVESTMAKLER has been operating on the international market for many years. Our specialists continuously improve their skills and knowledge by studying the legislation of other countries. If you decide to buy a ready-made company in Germany, our staff will advise you on all stages and nuances, and answer any questions you may have. All you need to do is submit a request on the website with your contact numbers, and we will get back to you within minutes.
Buying a ready-made company in Germany offers many more advantages than starting one from scratch. This option is indeed more attractive for our compatriots as they get already operating enterprises.
For example, if you register a company on your own, you will need to obtain a tax number. For Ukrainian or Russian-speaking founders, this has recently become nearly impossible, as tax inspectors impose numerous requirements and claims. This is due to the fact that businessmen from CIS countries often attempt to launder money and evade taxes by relocating their companies to Europe. Additionally, buying a ready-made business offers the following benefits:
If you are concerned about buying a ready-made business in Germany, you can check public state registers. They allow for a thorough analysis of the business you are interested in. Once you confirm that it has no outstanding debts and assess its overall performance, you can confidently begin the re-registration of all documents. By the way, to check the company’s reputation among European partners and clients, you can hire specialists from consulting firms or consult with our staff.
The costs for this are no higher than the expense of registering a new company, and the time frame is significantly shortened. Moreover, businesses for sale often come with an already opened bank account. You will be considered a German legal entity with the necessity of arranging only a minimal set of documents.
In reality, there are not many differences. The procedures for both registering a new company and re-registering an existing one are quite similar. Even obtaining a registration certificate goes through the court. In the case of initial registration, you will need to:
After purchasing a ready-made business, you only need to make changes to the already existing documents. The founders are not checked by German authorities in this case.
Opening an account in a German bank has its pitfalls. The mandatory presence of the foreign founder is required. Thus, you will need to spend money, time, and nerves. Additionally, if bank employees make a mistake in filling out documents, you will have to start the process over.
This highlights the advantage of buying a ready-made business: most of the time, the company already has a corporate account.
Business owners from Ukraine need to provide information about:
A ready-made company is sold with tax numbers already in place. You won’t have to spend your time and money on this procedure. If you have questions, our managers will provide consultations on the specifics of buying and selling companies in Germany. Leave a request on the website, and they will call you back very soon.