Chinese investors in Germany legal, tax, and business culture 

China’s strategy for economic growth is called ‘Made in China 2025’. China is encouraging global investing in promising future technologies in a targeted way. The German market is popular with Chinese investors. The areas of advanced technology and environmental engineering are particularly attractive. German firms should be ready for collaboration with entrepreneurs from the Middle Kingdom.  

Key points in brief     

  • The German economic system and the conditions companies are subject to are highly regulated. Deals, transactions and M&A are accompanied by the obligation to carry out legal and tax due diligence.     
  • German tax law is complex and includes not only VAT, but also income and trade taxes. The German tax authorities are strict.
  • The Chinese and German business cultures are extremely different.
  • German employment law includes such aspects as social insurance, the minimum wage, health and safety, as well as the regulations on unions and works councils.     

Germany as a gateway to the EU for Chinese businesses

As an important economy, Germany offers Chinese companies access to the European market. Germany still enjoys a reputation for high-quality technology and in-depth specialist knowledge. And protection for intellectual property is a high priority in the German legal system. All this makes Germany attractive to investors from China.     

Challenges and solutions 

Deals, transactions and M&A in Germany often present Chinese companies with challenges. Business in Germany is much more regulated than in China. This concerns the areas of tax, compliance, environmental protection just as much as workers’ rights. Our experts will assist you with every aspect of compliance.     

We’re there when you need us and provide advisory in the following areas:     

  • Audits of consolidated and annual financial statements     
  • Audits/review reporting packages      
  • IPOs     
  • All tax issues     
  • Financial outsourcing and payroll services     
  • Financial and tax due diligence     
  • M&A and     
  • Founding companies and
  • Worldwide with our international Grant Thornton network.

Get in touch without any commitment.

Are you a Chinese company looking to do business in Germany? Are you looking for advice from understanding, native speakers to allow you to get the best start into the German market? Our contact Han Yang helps Chinese companies get the best start into the German market. Take advantage of her expertise and feel free to contact her with your questions, without any commitment.

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