Obtaining investment license in Germany

License for investment activities in Germany

The investment license in Germany is of considerable legal force. It ensures the legal functioning of all enterprises associated with the financial turnover of the state. The certificate is issued not only to investment funds, but also to a number of other types of companies.

It is often necessary to expand the activities of banks, brokerage offices, large pawnbroker's offices,and private traders. Individuals are not eligible for investment license in Germany, and the service is available only to corporate clients from among nationals of the country or non-residents.

Businessmen from abroad undergo licensing procedure in the same manner as local entrepreneurs. The difference can be in the stages of preparation, namely: non-residents need to establish their company in the territory of Germany, while the German applicants most often already own the business before filing the application.

Entrepreneur who has obtained the certificate for carrying out investment activities within Germany can expand the corporation to all EU countries by authorizing legal entity in the relevant commission of each state. There are no restrictions for development in cyberspace.

The only condition is the publication of consolidated regulations that establishes the framework of legal relations. Your clients should familiarize themselves with the regulations and follow them throughout the cooperation.

Permission for investment activities in Germany: the process of obtaining

1. Consultation. To clarify the details of registration, it is necessary to conduct a remote conversation with our specialist. Negotiations do not require payment, and you can contact the specialist by mail, phone, through call from the website and in chat. Legal support is provided only during working hours, if your country's time zone impedes online conversation, please, leave the request with questions to receive response.

2. Elaboration of business plan. The Commission for Regulation of  Finances in Germany, which issues licenses for investment activities, requires to submit the development plan of the applicant company in addition to the main documentation package. Business strategy determines the necessity of passportization and has an impact on the level of the authorized capital and the number of possible financial instruments allowed for use by the regulator. The plan is elaborated by the client, but our specialists will compile the list of documents recommended for submission on the basis of the foregoing plan.

3. Primary data exchange. The counterparty should provide a copy of the passport, the application form in German with the original signature, as well as a power of attorney for our lawyer. Due to the latter, the specialist will begin to collect the main package of documents without participation of the client, which will significantly save the time of the preparation process.

4. Creation of financial basis. In order to obtain permission for investment activities in Germany, it is not enough to establish the firm. In addition, it is necessary to establish the amount of the authorized capital, which will be the guarantee for your welfare, as well as cover all losses from the start-up of the company on the market. Our lawyers collect the documentation required for all three services at once, namely: establishment of corporation, opening account and obtaining certificate. In view of the foregoing factor, the total terms for licensing of the new firm takes from 3 to 6 months.

The cost for investment license in Germany

The draft laws on financial regulation with the latest amendments indicate new rates for taxation of non-residents, which are reduced to the minimum. This makes it possible to redirect all profits to own accounts, and not to the state treasury. The main part of the material costs accrues to the establishment of the authorized capital, and it will also be necessary to contribute fees and pay for the use of license.

If you wish, you can order legal support of the company and its audit in our company. These services will be especially useful before the annual inspection of the corporation by the local regulator.