Germany is the fourth largest economy globally and the largest in Europe, making it a hot spot for business expansion. Some of the world’s most significant trade events, including Medica, Hannover Fair, and Automechanika, facilitate massive volumes of trade throughout the country all year round. Germany values well-being and prioritises work-life balance and a high living standard for its people. A stable legal landscape, diversified economy, well-developed infrastructure, and incentives for starting a business make it an attractive destination for corporates.
Top Reasons to Expand to Germany
Germany’s high consumption index, huge trade volumes, and geographic location at the heart of the European Union make it a treasure trove of opportunities. It attracts businesses from across the world looking to expand into Europe. There are immense opportunities for the IT and cybersecurity, healthcare, innovative and renewable energy, digital solutions, and security sectors. Conforming to the EU’s treaty obligations, business owners from anywhere in the Eurozone can expand to Germany. Strong legal protection for innovative ideas and intellectual property, along with straightforward processes to set up a company, make it an attractive destination for expansion.
For Recruitment Agencies
With an ageing population, the recruitment industry is highly competitive in Germany. However, experienced providers with niche expertise make hiring convenient in the fast-moving economy. With a skilled talent pool, recruiters from anywhere can find professionals in almost every sector.
Skilled professionals, specialists, and experts in healthcare, engineering, and sciences are in high demand in Germany. The country values teamwork and cooperation, and citizens expect the same from foreign workers. The government has set a high minimum wage that surpasses the average cost of living in the country, allowing high living standards.
The country has a 48-hour workweek limit with a maximum of 8 hours and 30 minutes a day and a break after every 6 hours of work to protect the well-being of workers. German law mandates overtime compensation through extra pay and time off. Workers also get ample holiday allowances, parental leaves, paid sick days, and many more benefits.
Regarding self-employment (known as “Freiberufler”) in Germany, it can be somewhat complex. However, there are numerous advantages when compared to conventional employment. For instance, self-employed contractors might not be required to contribute to social security, which can lead to higher net earnings. They also enjoy the freedom to select their projects and work schedules, as well as the ability to deduct legitimate professional expenses, among other benefits.
How Can Access Financial Help?
Hiring temporary or permanent workers in Germany requires compliance with stringent regulations. A foreign company without a legal entity can hire a permanent representative from within Germany. However, a foreign company cannot recruit without the required licences.
Access Financial’s exceptional services have earned it a reputation as a trustworthy and reliable partner for businesses looking to expand to Germany and job seekers wanting to work there. Our German office in Frankfurt provides domestic and international regulatory advice for companies that wish to grow in the country. We also have the AÜG (Arbeitnehmerüberlassungsgesetz) licence under the Temporary Employment Act in Germany, which is mandatory to hire in the country through which we provide EOR services.
As a leading global labour leasing company, we oversee all contracting formalities and legalities for corporations, recruitment agencies, and contractors. Our services benefit employers by looking after local compliance, recruitment agencies by ensuring they have satisfied clients, and contractors by maximising their earnings and providing a compliant payroll solution.
For Corporates and Recruitment Agencies:
- Business incorporation in Germany
- Help in finding the best form of organisation and process
- Applying for the necessary licences
- Accounting & payroll outsourcing
- Employer of Record Services (AÜG)
- Legal & tax consulting
- Fast onboarding & contract management for self-employed (“Freiberufler”) and employed contractors
- Work permit / Blue Card application assistance
- Health insurance coverage
- Automated timesheet, invoicing, payroll and payments system
- Prevention of misclassification of taxes and social security contributions
Call us on +49 (6105) 4074016 or e-mail us at [email protected] to learn more. You may also download our country guide for Germany through the link below to familiarise yourself with the tax and labour aspects of the country.
German Country Guide: LINK
Below, we’ve prepared a list of frequently asked questions by our clients for your review.
Question: I’m a German company that wants to hire a contractor from another country. Can you help me with the paperwork?
Answer: Yes, we can help you with all aspects of hiring a foreign contractor in Germany, including obtaining the necessary visas and work permits (subject to criteria). We can also provide expert advice on German employment law to ensure you comply with all regulations.
Question: I’m a Swiss company that wants to expand into Germany. Can you help me set up a German subsidiary?
Answer: Yes, we can help you with all aspects of setting up a German subsidiary, including registering your business, obtaining the necessary licences, and setting up your payroll and HR systems. We can also advise you on German tax and social security laws.
Question: I’m a business owner from outside of the EU. Can you assist in hiring and managing a workforce in Germany?
Answer: Definitely. There are certain mandatory and optional benefits that a German worker must receive—choosing Access Financial as your EOR relieves you of the time and effort required to employ and manage the team while ensuring compliance with local employment laws. Our end-to-end payroll management and administration services empower you to operate with local best practices while fulfilling required obligations.
Question: Do you help independent foreign contractors who have work opportunities in Germany with immigration and compliance requirements?
Answer: Yes, we do. Access Financial has over 20 years of experience helping contractors worldwide relocate to new destinations. We support you in immigration while assisting with all taxation, legal and compliance requirements according to the Self-Employment or Freiberufler guidelines.