ILN: Establishing A Business Entity: An International Guide

[ESTABLISHING A BUSINESS ENTITY IN GERMANY]

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account in Germany (even if the investor is the account holder). Payments for the import or export of goods and details in connection with the granting, taking out, or repayment of loans with an originally agreed term of less than twelve months do not have to be reported. For statistical purposes, every person living in Germany and every company located there must also inform the Bundesbank of the ownership of securities or deposit accounts abroad. Receivables or liabilities from companies (for example, banks) or private individuals abroad must be reported to the Bundesbank if they amount to more than EUR 5 million or equivalent. For bank account deposits of more than EUR 10,000 cash, banks are required to check the identity of the depositor in order to prevent money laundering. 2. Goods and Machinery Most goods and machinery can circulate freely within the EU. Customs, import turnover tax ( Einfuhrumsatzsteuer ), and in some cases, special excise taxes are charged for imports to Germany from non-EU states. The customs payable can be determined online using the TARIC (Integrated Tariff of the European Communities) system. Customs are not charged on investment goods if business operations have been transferred in full to Germany. Household objects can also be imported into Germany freely if the owner moves place of residence from abroad to Germany. A customs exemption of this kind must be applied for in writing beforehand.

ILN Corporate Group – Establishing a Business Entity Series

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