Starting your own business in Munich

Hi all,

Can anyone post some good resources, online or offline for starting a business in Germany? Preferably in English; covering wage laws, tax laws, basic AGB setup; visa requirements for foreigners (I'm under a green card tied to an employer) - for instance : what's procedures to follow, requirements, regulations, changes, etc.

Thanks,
Randy

Hi R,

Slightly off topic, but may be of use to you, although somewhat depressing.

i am also thinking about starting a business. So i went to the bank,and suffice to say, the 'banks' don't seem to want to lend any money to anybody who hasn't got any money inthe first place. They want security, in fact 100% of the value of the money you want to borrow. So unless you have a house, forget it. Stupidly the bank guy told me , oh if you have money in you savings account, then they would lend you money against that...derrr why would i want to borrow money, pay them interest if i had money i needed to start a business in the first place???

Next point, was that they are very unlikely to lend money to 'people who's german is not sufficiently good enough so that they cannot understand the legal and financial aspects of business, as the bank would NOT be prepared to go through the expense and time of translating it and spending time to explain it'. This sounds all well and good, but even german friends of mine have said, they are native speakers of german and still have problems understanding this technical german. My question is, how the hell have all of these other businesses started up when you go in there and you cannot understand a word they are saying even in German because their German is so bad!!!

Next point, then is if you are German and havea 'fantastiche idee' how do you get started if you have no money in the first place? No wonder the German economy is dying!!

davek: there are a couple of things you can investigate

* if you are unemployed and getting benefit, investigate the ich-AG. you get up to 600 bucks a month from the govt for nothing

* investigate subsidies from places like kfw, bayerische forderbank, etc.
e.g. http://www.lfa.de/gruendung/G_Unterneh.htm

* from a practical perspective, the only banks still lending to small companies at all are sparkassen. as a first step, move your personal current account there so that you have a contact / relationship. dresdner, deutsche, hypovereins, commerz and the likes are moving away from this type of business because, quite frankly, the risk/reward ratio makes it not worth it (since, unlike sparkassen, these commercial banks have a cost of capital they need to earn for sharholders...)

practically *all* businesses are started with money from personal overdrafts, second mortgages / remortgages, loans from friends / family / "fools"

do not waste time with looking for venture capital until you are generating some revenue. if your idea involves high-tech, check out the various business angel networks ( http://www.business-angels.de/regional/bayern/fnt-ev.htm )

especially around here, you need to have an *extremely* watertight and well-prepared business plan. do not even consider thinking about contemplating going into a meeting with just an "idea". preparation, preparation, preparation!

good luck...
J

Many thanks jordigo, i'll look into them...

Great advice Jordigo. In my own situation, I'm not especially concerned about raising German capital - more along the lines of logistics and law for ausländers prospecting a German venture. If you have any resources for that, I'd be especially interested. Thanks!

i am desperate to start work,i am a qualified aromatherapist and would like to start a practise,the problem is i dont know the laws or rules to practise here in Germany.can anyone guide me in the right direction.

Topics merged by admin

HI, Since I had difficulty finding what I am looking for,
I thought I would ask...

Does anyone know where to go, if one wants
to apply for an alcohol license

I have tried most of the Munich websites, aswell as
Yahoo and Google and TT of course.

Aromatherapist sounds like it might be covered by the rules for Heilpraktiker. The Kultusministerium is responsible for the examination governing that. But why not consult a tax advisor? He or she will point you in the right direction. I am sure someone on TT will know an English-speaking one.

For alcohol related queries I suggest asking Hazza, perhaps by popping into the Arc and buying him a pint?

Do you need a license for alcohol? I sure as hell hope not, or I've been drinking illegally since I was a kid...

My husband and I were thinking of opening a
club and obviously one needs to have
a liquor *alcohol* license...

And the info on the web is a bit limited...

but if anyone knows of links,places or who
has experience with these things...I would
be great to find out more..

please let me know..

thanx

A great place for an Auslander to get help getting a business off the ground is the Münchner Existenzgründungs-Büro, Max-Joseph-Straße 2. tel: 5116 761/2/3

I found them to be extremely helpful and knowledgeable, especially about public business-starter loans. Some of them are surprisingly easy to qualify for.

Good luck.

Can anyone recommend any books that explain in German or English the process of setting up your own company from scratch?

Thanks very much.

Obie