Being the largest economy in Europe and the fourth largest economy in the world, Germany is an important business location. The strongest economic sectors are the automotive industry, electrical engineering, mechanical engineering, chemistry and, increasingly, the service sector. Among Germany’s most important trading partners are – apart from the US and China -, especially our European neighbours with France in the lead, followed by the UK, the Netherlands, Austria, Italy and Poland. With its central location in the European internal market, good infrastructure, qualified workforce, and political and legal stability, Germany offers optimal conditions for foreign investors. However, successful business ventures in Germany depend significantly also on knowledge of the German corporate and legal culture and of the local regulatory environment. One of the fields of expertise of our internationally-oriented law firm is, therefore, assisting and advising foreign businesses and entrepreneurs in legal matters relating to their business activities in Germany.
Legal peculiarities in international business transactions with Germany
In international business a variety of peculiarities have to be considered. To make the right decisions, differentiated observation and evaluation of the various legal aspects at the investment location must be taken into consideration. In contractual relationships with German trading partners, a foreign company must regularly consider the question of which legal system governs or is to govern the contract, or if it would not even be advisable to agree to German law.
For suppliers of goods, this could, for example, be recommended if the law of the home state does not provide as far-reaching security, such as retention of title under the German legal system. For, according to German law, retention of title can be easily made the subject-matter of the contract also for the case of processing or reselling of the goods by the buyer through incorporation by reference in general terms and conditions, which means that the foreign supplier will be entitled to preferential satisfaction in the case of the German buyer’s insolvency.
When pursuing a project to establish a subsidiary in Germany, it goes without saying that knowledge of German company law is required to be able to realise the optimal legal form for the planned venture subject to compliance with all legal requirements. Likewise, strategies can only be implemented successfully in regard to cross-border sales of goods, if the legal requirements of the distribution territory are adequately taken into account.
Specialist advice for all international transactions with respect to German law
Derra, Meyer & Partner advises companies and private individuals extensively in all international transactions that are related to Germany. Our focus is, e.g. on issues from the field of Corporate Law and M&A, Commercial Law & Agency Law, Labour Law, Business Migration and Insolvency Law. In addition to the examination and design of treaties, we will represent you in all extra-judicial, judicial or arbitral proceedings with your business partner – always with the aim to enforce your individual economic interests in the best possible and purposeful manner.
Our lawyers and tax consultants specialising in international law have specialist knowledge of German and international business law, acquired through studies and sometimes lengthy stays abroad, and are able to communicate with you in the language of your country (Italian, Russian, French or Spanish) or in English. In multidisciplinary matters, we can always rely on colleagues from the areas of law concerned, and complex issues can be best resolved by forming expert teams. Collaborating with our colleagues at our offices in Italy and Germany is just as given as resorting to our external cooperation partners from our network that also includes, among others, experts of the international networks of lawyers, DIRO AG and WIRAS AG.