Foundation of a new company
This model presupposes the formation of a company according to the framework of German or European law (for instance the British model of limited company or the so-called “Unternehmergesellschaft”, a society model equivalent to this model) In this case it is necessary to draw up a notarial foundation.
Branches
This model is utilized whenever an Italian company already in existence decides to open new subsidiaries in Germany. If this second alternative is chosen, no notarial act is required.
In both cases it is necessary to adhere to the general preconditions of economic activity in German.
Stable organisation
From the perspective of German fiscal law a branch may factually be considered as a stable organisation – with all the consequences that result from this. This is true even if the entrepreneur did not structurally conceive the firm as such.
Typical constellations are listed below:
- hiring personnel who are authorised to sign contracts on behalf of the principal
- carrying out business activities
- opening an office in Germany
It is vital that the entrepreneur be aware that the certification of a stable organisation necessarily incurs the taxation of the German revenue in Germany.
Usually, the execution of complex projects, for instance in the construction sector, generates a stable organisation.
The recurring and complex fiscal tasks connected to the respective activity must be clarified by an accountant.
In any case it is always necessary to adhere to the general preconditions of economic activity in Germany.