Insights
Why Doing it Yourself Can Be The Most Expensive Way to Enter Germany
A client from Asia we worked with recently wanted to set up their German subsidiary “lean and fast.”
They decided to skip professional support and handle everything themselves. On paper, it looked like a cost-saving move. In practice, it became one of the most expensive decisions they made.
Here is what happened:
They bought a shelf company but underestimated the documentation required for the initial business registration (Gewerbeanmeldung). Simple filings took multiple attempts. Then, the tax registration was delayed because forms were either filled out incorrectly, submitted without required supporting documents, or the wrong forms were used. By the time the company was fully operational, months had passed. The investor they had lined up grew impatient, and a contract with a major customer was nearly lost.
The client later admitted: “What we thought would save money actually cost us more in lost time and lost opportunities.”
Germany is a highly regulated environment. Mistakes are rarely small; they create cascading delays that affect banking, taxes, hiring, and contracts. While DIY may seem attractive, the real cost is often hidden in slower growth, frustrated investors, and missed deals.
With experienced local support, these obstacles can be avoided. At Greenfields, we have seen both sides of the story. We know that structure and compliance are not bureaucratic burdens – they are enablers of growth. The sooner your German entity is ready, the sooner it can seize opportunities.