Legal Question in Business Law in Germany

If the question is aimed at whether there are any German laws that would prevent a US business from expanding its business activity into Germany, the answer is generally no. There are generally no restrictions for foreign companies entering the German market and access for US businesses is additionally guaranteed by trade agreements like the WTO agreements and bilateral treaties between Germany and the US. However, in rare cases certain restrictions might apply in areas like regulated professions or due to export control regulations.

If the question is aimed at what laws affect US businesses entering the German market, the answer is a wide variety. US businesses doing business in Germany are generally subject to the same laws as domestic German businesses. That includes but is not limited to the Civil Code (BGB) and the Commercial Code (HGB), unless, where possible, in particular in contracts, a different law, like the law of a US State, is chosen by the parties, as well as the laws against Unfair Trade Practices, like the UWG, Intellectual Property Laws, Product Safety Regulations, Anti Trust Laws and general trade regulations, possibly even tax law. In case of direct investments, i.e. the establishment of a branch office or the formation of a subsidiary, corporate laws and labor laws also come into play.

Due to the general nature of the question, this answer must be limited to a general overview. If you consider a particular business activity in Germany and are interested in a consultation, please feel free to contact me.

Peter Koch, LL.M., MBA

Attorney at Law (licensed in Germany and New York)

KOCHLAW

Schuetzenstrasse 76a

22761 Hamburg

Germany

Tel. +49-40-8079364-40

Fax +49-40-8079364-41

e-mail: [email protected]