Opening a business in Germany: what is needed for this?

On June 9, representatives of the Russian branch of the agency for economic development of the federal state of Germany North Rhine-Westphalia and Russian businessmen met at the ITMO University Technopark in St. Petersburg. The guests talked about why it is worth opening branches of their companies in this region, as well as how to do business in Europe.

The agency has been working in Russia for 4 years.Its goal is to help Russian companies develop their business in the region at a lower cost. The German agency provides free support to foreign companies in the implementation of business projects and the creation of enterprises in North Rhine-Westphalia. The Agency for Economic Development helps to assess the chances of Russian companies in the German market. The meeting was attended by two representatives of the agency - Tatiana Schwarzkopf and Tatiana Kryachkova.

Tatiana Shvartskop noted that the purpose of this meeting is to tell about the region in terms of economics and business opportunities. According to her, in Russia, such territories as Hamburg and Bavaria are more "heard". But from an economic point of view, North Rhine-Westphalia is the most favorable region in Germany. This federal land is the most densely populated region of the country. According to the latest figures, its GDP is 625 billion euros.In addition to all this, the region has an excellent infrastructure, there are 2 large international airports, 720 km of waterways and about 120 ports. The region has a high level of development of science and technology. There are 72 universities, 50 research centers, 60 technology parks.

Among all regions of Germany, North Rhine-Westphalia ranks 1st in terms of investment. The industrial policy of the region is aimed at supporting cooperation between international enterprises and states. The region holds leading positions in the following industries - logistics, energy, mechanical engineering, medicine, IT-technologies, Smart Grid, Big Data.

Reasons for starting a business in North Rhine-Westphalia:

• 1st place in terms of investment in Germany

• One of the largest sales markets in Europe

• "Gateway" of Europe

• World level in science and education

• The largest conglomerate of exhibitioncomplexes

• Competitive taxation system

Many world concerns have representation in the region: Henkel, Ford, Toyota, LG, etc. Also there are many small and medium-sized businesses here.They make up 95% of the milestones of the companies (about 747 small and medium enterprises).

In addition, North Rhine-Westphalia is the world's largest conglomerate of exhibition centers. According to this indicator, it ranks first in the world. Most of the complexes are concentrated in Cologne, Dusseldorf, Essen, Dortmund. Participation in such an exhibition is a big step for a company that wants to make itself known.

If the first speaker talked about the economic merits of the region, Tatyana Kryachkova told those present about the intricacies of doing business. According to her, if you do not have an account and a legal entity in the European Union, then you will not be able to interact with Europe. To do business in Europe, you need to follow some formalities.These include:

• Product customization

• Obtaining patents

• Obtaining certifications

• Trademark registration

• Opening a representative office in Europe

• Marketing research

• Expanding the circle of partners

• Cooperation with financial institutions

• Business critical assessment (SWOT analysis)

• Technology readiness assessment (TRL)

• Market research, business and competitiveness

Further Tatiana explained with whom their agency interacts. These are universities, chambers of commerce, departments, banks, etc. She also spoke about the federal program to support production in Germany. Thanks to it, it is possible to obtain investment and operating subsidies. The first are direct cash payments. And secondthe type of subsidies is first issued for a project, the company spends these funds, and then reports on what was done with this money. Companies can receive financing up to 70%, larger projects - up to 90%. If we talk about this program, then it is worth considering the existence of a system of regional gradation. There are weak and strong regions.North Rhine-Westphalia is one of the strongest, and the percentage of funding is lower here, but not much (20-30%).

There is also a regional program for stimulating economic development in Germany. It is aimed only at companies registered in Germany. The program helps to commission production sites, expand existing production facilities, and obtain investments.

Subsidies:

• Training - up to 40%;

• Human capital - up to 50% of wages;

• Launch of innovative products on the market - 50%.

Additional mechanisms for business development in Germany:

• CE certificate - compliance with EU standards (it is very expensive);

• Patents - they are granted by the German Patent Office;

• Registration of a trademark in the national register of the Federal Republic of Germany, the European and international registers in the following forms: 1. Letter, number, brand-word.2. Brand-drawing.3. Brand color scale and drawing.

Unlike the USA, Great Britain and some other countries, Germany does not need to participate in the enterprise of residents. You can apply for a residence permit without additional investment. If an entrepreneur is married and has children, the tax on his business is reduced. Income tax has a maximum value of 30%. Automobile and office expenses are deducted from the tax.

For more information, please contact the economic development agency of the federal state of North Rhine-Westphalia.