Investing in Germany: Where to Start?

As countries go, Germany is one of the best in the world when it comes to providing investors with useful information and advice. Finding solid, up-to-date economic data or points of contact is but a click away.

Below are some of the key organizations that can provide important information to businesses and investors interested in Germany. The Transatlanatic Business Dialogue (TABD) is a supra-governmental organization comprised of US and EU companies looking to facilitate transatlantic business cooperation. TABD (www.tabd.com) can provide helpful insight into top-level policies and regulatory hurdles that have to be overcome prior to an investment. An arm of this organization, the Transatlantic Small Business Initiative (TASBI) (www.tasbi.com) promotes the formation of business linkages among small and medium sized companies. Germany’s Economics Ministry (www.bmwi.de) provides comprehensive information on starting a business in Germany. The Ministry provides important information on federally sponsored incentive programs, including write-off allowances for small and medium sized companies, low interest start-up capital or takeover capital, and property tax allowances.

The Federal Commission on Foreign Investment in Germany provides research, contacts, and investment promotion financing for foreign firms (www.dfin.de). Supported by the German federal government, the commission is headed by Mr. Hilmar Koppper, who is also suprvisory board chairman at Deutsche Bank (see article on this page).

In addition to the federal foreign investment commission, each state in Germany also provides specific information or tax benefits and other local benefits (www.invest-in-germany.com).

Another important investment agency was established to promote the five eastern states of Germany. The Industrial Investment Council (www.iic.de) based in Berlin, offers government and private incentives, including low cost industrial real estate, special depreciation allowances for capital equipment, government loan programs with deferred interest, and equity capital assistance. Several eastern states go so far as to offer state guarantees on loans.

The IIC, headed by Dr. Christoph von Rohr, provides a menu of services to companies that are investigating the business investment opportunities in the eastern states of Germany.

Capital and trade flow between the US and Germany is further facilitated by business associations such as The American Chamber of Commerce in Germany (www.amcham.de). “AmCham” members can provide important networking information to companies interested in a particular region or city in Germany. AmCham is headed by Dr. Dierk Müller, which is based in Frankfurt. The organization provides valuable information to individuals and companies who want to “learn the ropes” regarding the largest economy in Europe.

The German Confederation of Small and Medium-Sized Enterprises (BVMW) is an organization that was originally established in 1975 to represent the interests of smaller companies before German policy-makers.

Today, according to Mr. Bodo Schwartz, President of BVMW in Dresden, the association’s network of 53,000companies throughout Germany can also be a valuable contact for mid-sized American companies looking to do business there. BVMW (www.bvmw.org) can serve not only as an information resource about doing business in Germany but also as a gateway to eastern European countries such as Hungary, Slovakia, Poland and the Czech Republic due to BVMW members’ historical business relationships with these markets.

Mr. Schwartz says BVMW is developing an exchange program for German and American
business executives that will focus on marketing in both countries.—