Start a Software Company in Germany

Updated on Friday 14th April 2023

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Berlin is home to a wide range of technology companies and the IT and software industry is a well-developed and well-represented one that is also an important source of employment in the city.

In order to start a software company in Germany, investors wishing to enter the business field will need to find the proper funding (if the company is a startup), hire talented employees and offer a unique IT and software product to their clients.

Software development experts can offer their services in a number of fields, from effective software services and solutions to web and mobile development and others. Our team of lawyers in Germany is ready to assist investors, particularly foreign entrepreneurs, who wish to incorporate their own company.

Software companies in Germany

From software solutions for different types of companies in Germany and for international clients to mobile development, artificial intelligence research or online platforms that offer solutions for different types of needs, to fintech solutions, IT and software companies in Germany have access to a broad range of clients.

Some ideas for IT and software companies in Germany include the following:

General software development: this field is popular among software investors and these companies will often provide tailored software solutions to companies in various environments.
Business apps: particular applications designed for companies so they can better manage their operations.
Fintech: solutions in the financial technology sector, from mobile payment to software for banks and virtual wallets; the fintech sector is well-represented in Berlin.
Services platforms: solutions for delivery services and companies as well as online services, from ordering food to online shopping.

With our lawyers' help you can also open a bank account in Germany.

Software company compliance in Germany

These types of services are only a brief enumeration of the variety of products and services offered by companies in Germany that activate in the IT and software sector. Some businesses, like ones processing personal information, will need to comply with the GDPR. One of our lawyers in Germany can give you more information.

Investors who open a software company in Germany will need to follow the general incorporation and registration steps as well as comply with the tax laws and the requirements for employing staff.

Does your software company qualify for the small business scheme in terms of value-added tax? VAT registration in Germany is a needed step for resident companies in most cases, however, this special scheme allows small businesses to become exempt from this tax, as long as they remain within a certain annual turnover. Our team can give you more details.

Please feel free to contact our law firm in Germany for complete information on how to open a software company.