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10 reasons why companies invest in Germany

Manage and grow your business in Germany at your fingertips

Germany is one of the major industrial countries in the world.It offers a substantial market, a focal area in Europe and an abnormal state of development. Do you need more motivations to put resources into Germany?

Big market

With 82 million inhabitants, Germany is the most populous country in the European Union and the largest market in the EU. With a GDP of more than 2.2 trillion euros, Germany is the largest economy in Europe and the third largest economy in the world.

Central location

Germany's central location in Europe makes it a centre for goods and services. Germany benefits from the expansion of the EU more than other countries. Therefore, since 1995, it has been the only country among the seven most important industrialized countries to increase its share of world trade.

Open market

Germany is an open market and invites outside speculators. This has been demonstrated by the 22,000 foreign companies that have established operations in Germany, and now employs more than 2.7 million people. The German market can invest in venture capital in almost all areas. There are no longer any industries controlled by the state. Due to its attractive corporate legislation and favorable investment conditions, Germany is increasingly receiving attention from private equity firms and hedge funds.

International location

More than 7 million foreigners live in Germany. Several metropolitan areas have famous foreign communities with their own schools, churches, shops and restaurants. For example, a large number of Japanese live in the Düsseldorf area, which is home to many Koreans and has a thriving Chinese community in Hamburg. About 70% of German blue-collar and white-collar workers speak multiple languages.

Qualified personnel

Germany offers a highly qualified, motivated and dedicated team of employees. The high standards of knowledge and skills of German employees are internationally recognized. 383 higher education institutions meet the needs of professionals. Another pillar of the German training system is the “dual system” of vocational education, which combines workplace and school education and produces a recognized high standard of training to meet the needs of industry.

High level of innovation

According to statistics, Germany has 277 international patents per million inhabitants - more than anywhere else in the world. The close cooperation between the industry and world-renowned research institutions such as Max Planck and the Fraunhofer Institute quickly transforms new ideas into products for the world market.

Highly developed infrastructure

Germany has a well-connected road, rail and international airport network. This guarantees a quick connection. Frankfurt Airport is known as an international hub, while Hamburg Port is one of the largest container transshipment centers in Europe. The communications infrastructure has achieved excellent development nationwide.

Legal security

Germany is a modern constitutional state with transparent and reasonable laws, and its advantages are internationally recognized. The German legal system has become a model for many other countries' legal systems. International research shows that German legal protection is highly valued by investors.

Powerful "MITTELSTAND" (small and medium enterprises)

The German economy is characterized by privately owned small and medium-sized enterprises, SMEs. 85% of all companies are SMEs. This makes the German industry very flexible, multifaceted and competitive. Many of these highly specialized companies are international market leaders in their field, the so-called “invisible champions”.

World famous trademark

Products with "Made in Germany" seals maintain the highest quality worldwide. This has played a significant role in maintaining Germany's status as a world champion exporter for many years. The automotive, mechanical engineering, electrical engineering and chemistry sectors are particularly strong. Future industries, such as environmentally friendly energy production and nanotechnology, whose number of patent applications doubles every two years, is growing steadily. All of this means that foreign investors can benefit from the “Made in Germany” quality mark.

Foreign investors interested in Germany company formation can to get in touch with our international market entry specialist who can successfully assist them with the company formation process. In case you are interested in opening an Gmbh or mini-Gmbh company, we can put you in contact with our partners at On Demand International - an experienced team of European company formation agents.

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