Business Reforms in Germany

= Doing Business reform making it easier to do business. Negative =  Change making it more difficult to do business.


Starting a Business: Germany made starting a business easier by making the process more efficient and less costly.

Labor Market Regulation: Germany introduced a minimum wage of €8.50 an hour in accordance with the Act on Minimum Wages (Mindestlohngesetz), which took effect on January 1, 2015.


Starting a Business: Germany made starting a business more difficult by increasing notary fees.

Registering Property: Germany made it more expensive to register property by increasing the property transfer tax.


Paying Taxes: Germany made paying taxes more convenient for companies by canceling ELENA procedures and implementing electronic filing and payment system for most taxes.

Resolving Insolvency: Germany strengthened its insolvency process by adopting a new insolvency law that facilitates in-court restructurings of distressed companies and increases participation by creditors.


Starting a Business: Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial registry and eliminating the need to publish an announcement in a newspaper.


Starting a Business: Germany made starting a business easier by reducing the minimum capital requirement to a symbolic amount.

Resolving Insolvency: Germany enhanced its insolvency process through the Act on the Implementation of Measures to Stabilize the Financial Market (Finanzmarktstabilisierungsgesetz), which removed the requirement for potentially viable companies to file for immediate insolvency in cases of overindebtedness.


Getting Credit: Germany weakened its secured transactions framework by decreasing secured creditors’ rights during reorganization procedures.

Paying Taxes: Germany made paying taxes less costly for companies by reducing the corporate income and trade tax rates and by introducing straight-line depreciation for fixed assets and low-value asset write-offs below a certain threshold.

Resolving Insolvency: Germany amended its insolvency code to allow the court to suspend enforcement actions against assets essential to the continuation of the debtor’s business, making it easier to maintain the business as a going concern.


Starting a Business: Germany made starting a business easier by implementing electronic registration and introducing online publication of the incorporation notice.

Registering Property: Germany made transferring property more costly by increasing the transfer tax in Berlin.