Invest in Rhineland-Palatinate

Invest in Rhineland-Palatinate

With one of the highest export ratios Rhineland-Palatinate as a business location is in second place among German states.

The Investment and Economic Development Bank of Rheinland-Pfalz (Investitions- und Strukturbank Rheinland-Pfalz - ISB) is the institute of the German state of Rhineland-Palatinate for business and housing development. Among a variety of other support services, we offer support for investors in their search for appropriate sites. All our services are free of charge.

We support companies which would like to invest in Rhineland-Palatinate. We will provide you with information on the fiscal and legal aspects of setting up a company or entering into a joint venture, and we can also provide contacts to companies and institutions. Take advantage of our offer!

Before investing in Rhineland-Palatinate, the following guideline can help you:

1. Visa, Residence and Work Application Process

EU nationals may enter and work in Germany without any visa. If they change their residence to Germany, they only have to register at the local registration office (Einwohnermeldeamt). Swiss nationals have to notify the local immigration office about their long-term stay in order to get a residence permit certifying their right to free movement.

Subject to the length of stay and intended business activity in Germany, Non-EU citizens will need a visa or a residence or settlement permit.

For details, please refer to pages 10 – 11 of our Investment Guide.

2. Choice of a corporate form for the establishment of a company

The most common form of corporation is the GmbH – Limited Liability Company. In addition, you can choose between various other legal forms.  

For details, please refer to pages 6 – 8 of our Investment Guide.

3. Important steps

After the decision to establish a company, various important steps, such as the opening of a bank account or the registration of the firm in the commercial register should be followed.

For details, please refer to page 9 of our Investment Guide.

4. Social Security System

Due to their compulsory membership in five German social security institutions, jobholders are protected against the biggest risks. Contributions generally are shared equally by employer and employee. Employers should reckon with roughly 23% of ancillary labour costs. 

For details, please refer to pages 12 and 13 of our Investment Guide.

5. Taxation in Germany

Income tax

Every employee who earns more than a certain amount (known as the “threshold”) in a year of assessment must pay income tax. Employers must withhold and forward the income tax in the form of wage tax to the government. Income tax rates are tied to salary levels.

Corporate tax liabilities

Companies in Germany pay trade and corporate taxes. Taxes are based on the pre-tax-profit of a company.

VAT

The Value-added tax (VAT) is a tax on the exchange of goods and services. With currently 19% in Germany, it is below the European average. The VAT paid by companies can be offset in the VAT return as an input VAT deduction (Vorsteuerabzug).

For details, please refer to pages 14 – 16 of our Investment Guide.

Customs

Within the European Customs Union unified customs arrangements apply. This means that customs duties are only levied when and where the goods first enter the EU, for example Germany. For further goods movements within the customs territory, no more duties will have to be paid.

For details, please refer to pages 17 – 20 of our Investment Guide.

6. Intellectual Property (IP) Rights Registration

The German Patent and Trademark Office (DPMA) is the central authority in the field of industrial property protection.

Patents and Trademarks

Any new technical invention will only be patented after a legally prescribed procedure has been conducted and concluded with a positive result. Then a product or invention enjoys full legal protection and cannot be copied in any form. Trademarks stand for the quality of an enterprise and can be filed by anyone in the register kept at the DPMA.

For details, please refer to pages 21 – 24 of our Investment Guide.

7. Intercultural advice – Dos and Don’ts

International business people all over the world should respect the etiquette and the rules of their business partner’s country.

For details, please refer to pages 25 and 26 of our Investment Guide.

Your contact in Rhineland-Palatinate

for all questions concerning business development:

Investitions- und Strukturbank Rheinland-Pfalz (ISB)
Phone +49 6131 6172-1202
Fax +49 6131 6172-1299
isb-marketing(at)isb.rlp.de
 

Investment Guide

Apart from the information contained in our Investment Guide, more detailed information can be found under the following links:

Initiates file downloadInvestment Guide
Initiates file downloadDetailed Information