ARTICLE
27 October 2025

Your German Subsidiary Made Simple – Reliable Tax Support For Global Businesses

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IR Global

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Expanding your business into Germany is an exciting milestone, but it comes with its own set of challenges. Germany's strong economy, central location in Europe...
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Expanding your business into Germany is an exciting milestone, but it comes with its own set of challenges. Germany's strong economy, central location in Europe, and stable business environment make it an attractive destination for international companies. At the same time, the country's tax system is precise and highly regulated, and navigating it without expert guidance can be daunting.

Every decision, from the legal form of your subsidiary to payroll administration and tax reporting, has a direct impact on your company's operations and growth potential. We help international businesses establish and manage their German subsidiaries with confidence, ensuring that operations run smoothly and in full compliance from day one.

Since 2001, we have been advising both German and international clients from our office in the heart of Munich. Over the years, we have supported well-established mid-sized companies, subsidiaries of global corporate groups, start-ups, freelancers, and private individuals, tailoring our services to meet the specific needs of each client. We take a holistic approach, combining technical expertise with a deep understanding of each client's business goals, and we see ourselves not just as advisors, but as partners invested in our clients' long-term success.

Local expertise meets an international perspective

Germany's tax and regulatory environment is renowned for its detail and rigor. Corporate and trade taxes, VAT obligations, payroll, and local reporting requirements all carry specific rules and deadlines. For international companies, these obligations must also integrate seamlessly with group-level reporting frameworks, whether that's IFRS, US GAAP, or another standard. Without careful planning, even small errors can lead to costly delays or complications.

Our team has extensive experience guiding international clients through these challenges. We have worked with companies from the US, UK, Australia, Japan, and across the EU, across sectors ranging from high-tech and software to fashion, healthcare, and retail chains. Each client brings a unique set of priorities and operational structures, and we take the time to understand these fully before offering advice. Our role is to simplify the complexities, clarify requirements, and help clients make informed decisions that support both short-term compliance and long-term strategic goals.

Tailored guidance at all stages

Setting up a subsidiary involves more than legal registration. It means building a foundation for efficient operations, smooth reporting, and sustainable growth. We guide our clients through each stage of this process, from choosing the right legal form to obtaining tax numbers, registering for VAT, establishing payroll and social security systems, preparing statutory financial statements in line with HGB (the German Commercial Code), and completing the mandatory annual tax filings together with the tax balance sheet.

Many international clients rely on us as a de facto extension of their finance and tax departments. We manage day-to-day accounting, payroll, and reporting obligations while coordinating closely with auditors, corporate teams, and other advisors abroad. For companies in transition or experiencing rapid growth, we also provide interim support for accounting, payroll, and project finance. By taking responsibility for these critical areas, we allow our clients to focus on strategy, growth, and operational priorities, knowing their German operations are in safe hands.

A personal, partner-led approach

The way we work sets us apart. We see ourselves as partners who invest in our clients' success. Every engagement begins with listening carefully to our clients' goals, understanding their business culture, and identifying the key challenges they face. Our advice is proactive, practical, and tailored to the unique circumstances of each client.

We combine precision with a human touch. Complex tax matters are explained clearly, and clients are kept informed every step of the way. Deadlines are met without stress or confusion, and correspondence with German tax authorities is handled efficiently on behalf of the client. Our team brings diverse expertise across corporate tax, compliance, payroll, financial reporting, and project management, and we communicate fluently in both German and English. We pride ourselves on clarity, reliability, and fostering long-term partnerships, building trust with clients that often spans decades.

Working across borders

Expanding into Germany often involves navigating multiple jurisdictions simultaneously. Whether it's coordinating with a parent company's headquarters, understanding group reporting requirements, or aligning international payroll systems, our role is to make cross-border operations seamless. We are experienced in handling the additional reporting obligations that international companies often face, such as Pillar II compliance, transfer pricing documentation, and complex payroll structures.

Our clients value that we can act as their local point of contact in Germany, handling correspondence with authorities, ensuring timely filings, and keeping the wider corporate structure in sync. By integrating local knowledge with an international perspective, we help clients avoid costly pitfalls while enabling them to focus on growth, innovation, and operational efficiency.

Building a foundation for long-term success

Growing your business across borders demands attention to regulations as well as a focus on long-term strategy. Establishing the right tax structure, financial processes, and payroll systems from the start creates stability and flexibility for growth. We leverage a broad network of professionals and experts whom, in highly complex or difficult cases, we are ready to contact on your behalf. These partners help us to provide guidance that is clear, practical, and forward-looking.

From the first conversation about your business objectives to ongoing management of your subsidiary, we aim to make your expansion into Germany smooth, reliable, and stress-free. We focus on creating long-term value, nurturing relationships based on trust, and ensuring that our clients can concentrate on growing their business, confident that the complexities of the German system are fully managed.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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