Indian companies in Germany – what they need to know

Germany and India are working ever more closely together in trade and business. Despite the apparent enormous differences, there are also basic similarities. India and Germany are both leading democracies and share a common passion for liberal thinking, entrepreneurship and a wealth of inventions.   

Key points in brief     

  • Indian companies intending on doing business in Germany or who are already doing so need tax advice, and auditing from a certain size.
  • Particularly when Indian employees want to work in Germany or for a German company, there are many legal and tax issues to be clarified.
  • We provide assistance for Indian investors buying a German company or buying shares in a company (transaction advice).
  • We assist with everything to do with bookkeeping and payroll and advise Indian companies on cyber security and data protection.

Indian companies are entering foreign markets and investing in Germany 

In the last ten years, India has increasingly looked outward. This is a trend that will probably continue into the future. Indian companies are tapping new markets through trade, alliances, expansion and corporate transactions. At the same time, Indian business personalities and family offices are increasingly viewing foreign countries as attractive targets for their investments. Germany’s political and economic stability, technological leadership and high level of public security make it an extraordinarily attractive investment target. What’s more:     

Germany is situated in the heart of Europe and offers not only access to a flourishing market of over 80 million inhabitants, but Germany is also the gateway to the European Union with its economic areas.

Germany’s central location, good connections and outstanding infrastructure are of interest to Indian investors and offer the ideal basis for building relations with Europe.

Germany – the most important economic market in the EU 

Germany’s position as India’s largest trading partner in the EU outside the United Kingdom, and the impact of Brexit on trade, immigration and collaboration in general will form the basis for cooperation between both countries in future. Both markets offer enormous opportunities to both sides for international investors. The political leadership of both countries also supports mutual trade. This potential is just waiting to be exploited. 

Challenges and solutions 

One of the main challenges to cooperation is the cultural differences between the two countries. It is precisely for this reason that it is important to be able to operate securely in the legal and administrative systems and to develop a feel for the typical local business practices. Our in-depth specialist knowledge is borne by a profound understanding of the Indian and German cultures. An intercultural sensibility is our particular strength. Our connection to the Grant Thornton network means that we can offer you the best advice in legal matters, tax advice and auditing. 

We advise Indian companies intending to venture into the German market. 

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

  • Green-field investments and acquisitions, transaction advisory and restructuring     
  • Tax and legal questions in all the typical areas, including advise on subsidies     
  • Preparation for EU compliant sustainability reporting or auditing     
  • Taking on outsourcing services (bookkeeping, payroll accounting, etc.)     
  • Data security, cyber compliance and e-discovery
  • Planning, documenting and defending appropriate transfer price structures, and     
  • Audits under German and international standards and audit-related advisory services, e.g. financial reporting.

Get in touch without any commitment.

Are you an Indian company looking to do business in Germany? Are you looking for advice from understanding, native speakers to allow you to enter get the best start into the German market? Our contact Akshay Deshraj helps Indian companies enter the German market as smoothly as possible. Take advantage of his expertise and feel free to contact him with your questions, without any commitment.

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