P a g e 1w w w. i n v e s t - i n - b a v a r i a . c o m

What’s insideFive minutes with …

Raymund Trost, CEO of the Joris Ide Group,

Belgium.

Page 2

In focus: Streets ahead in legal matters

Page 3

Bavaria in your briefcase: Traditional

costume parade to Oktoberfest

Page 4

Business Bavaria Newsletter

Issue 09 | 2013

What makes nappies more absorbent? Which flow fields are at work in electric tooth-

brushes? And where can renewable raw materials be used for applications in the con-

sumer goods industry? A newly founded research cooperation between the globally

active consumer goods corporation Procter & Gamble (P&G) and the Friedrich-Alexan-

der University of Erlangen-Nuremberg (FAU) is dealing with just this kind of question.

Building on the outstanding collaboration with the Cluster of Excellence Engineering

of Advanced Materials (EAM) at the FAU, the focus is now on the fields of model-

ling and simulation as well as research into renewable resources and biomass for

applications in the consumer goods industry. The cooperation was signed and sealed

on 30th July 2013 in the presence of Katja Kessel, Prof. Dr. Grüske from the University

of Erlangen and many other professors. P&G was represented, among others, by the

European Vice President for Research and Development, Dr. Helen Neville.

Procter & Gamble strengthens Germany as a research location

Zibo Hanhai Technology Park, on an area of almost 5,000 m² in Ismaning, is the

first incubator of its kind in Bavaria and is creating new forces to attract high-

tech companies from China.

First Chinese technology park opens

It was opened on 11th July 2013 in the presence of representatives of the state

capital Munich, the Chinese consulate general and Invest in Bavaria. The new

project was driven forward under the leadership of the northern Chinese city of

Zibo, which is situated in Bavaria’s partner province of Shangdong and is a strong

location for mechanical engineering, ceramics and petrochemicals. In the previous

year, China had already been in first place among all foreign investment projects

successfully supported by Invest in Bavaria.

The number of Chinese companies based in Bavaria has doubled over the last five

years. The Beijing Genomics Institute (BGI), one of the world’s leading institutes in

the field of genetic research, chose Munich as a location in early 2012. With branch-

es in Nuremberg, Munich and Bamberg, the Chinese network and communications

equipment supplier Huawei Technologies has also been part of Bavaria’s business

landscape for a while now. Our state is already home to over 12,000 Chinese citi-

zens. Not many people know that trade relations between the two states go back

to the House of Wittelsbach, who were sending increasing numbers of scholars, Je-

suit priests and trade ships to China as early as the beginning of the 17th Century.

The new technology park in Ismaning is opening a new chapter in this success

story. Invest in Bavaria believes that the “China Center” has great potential to

attract even more high-tech companies from China.

“The heart of worldwide research at P&G beats in Germany.” With these impressive

words, the Vice President emphasised the significance of the cooperation from the

point of view of the company. Around 1,000 of the approximately 9,000 research-

ers across the globe are based in Germany, working on innovations that enhance

people’s everyday lives. For P&G, this cooperation with the University of Erlangen

is another step in strengthening Germany as a research location. Invest in Bavaria

and Bayern Innovativ – the society for innovation and knowledge transfer in the Free

State of Bavaria – have been supporting P&G’s activities for a long time and are

certain that this agreement will create the ideal conditions for further research and

development projects for the corporation in the state.

www.medizin-aspekte.de/Gutes-fuer-den-Baby-Popo-FAU-Forscher-

basteln-an-Hochleistungswindeln_41563.html

Our top topic: legal security

German law is considered exemplary and creates security

– particularly when it comes to founding a company

P a g e 2w w w. i n v e s t - i n - b a v a r i a . c o m

Five minutes with …

… from Bavaria hold top positions in the Germany-wide city ranking. According to a

study conducted by the Cologne Institute for Economic Research, 22 Bavarian cities

are among the 50 economically strongest cities in the Federal Republic of Germany.

Four Bavarian cities made the top ten list: Schweinfurt is number three, Ingolstadt

ranks number four, followed by Regensburg in seventh place and Erlangen at num-

ber eight.

The Belgian company is a leading manufacturer of

steel products for the construction industry and

recently opened a new production facility in the

Brodswinden district of Ansbach, where flexibility

is all-important.

Which advantages ultimately led you to choose Mid-

dle Franconia as a location?

Germany is one of the most demanding markets in

Europe, especially in our segment, regarding both the

quality requirements and the delivery service. Both

are big priorities for us, so it was high time we es-

tablished a site here. The north of southern Germany

provides ideal conditions. Thanks to the sufficiently

large production areas and good infrastructure in

a company-friendly climate, we are able to provide

products for a wide range of customer needs here.

How important is Bavaria for you as an industrial

location, especially with regard to your company’s

innovativeness and flexibility?

Bavaria offers us the perfect combination of all fac-

tors within Germany. We value the strong economic

power of the region, with the latest industrial sectors

and qualified specialist staff – and not least demand-

ing customers right on our doorstep. The geographical

position is key for Joris Ide. With the location in Ans-

bach, we are in a sense creating a bridge between our

sites in Western Europe, such as Belgium and France,

and those in Eastern Europe. This makes our group’s

network tighter and allows us to orientate ourselves

even more flexibly towards the market requirements

throughout Europe.

How helpful was the support from Invest in Bavaria

and the economic promotion services of the town of

Ansbach for you?

We were able to work together in a very open and

constructive way with Invest in Bavaria, the Chamber

of Commerce and Industry, and the town of Ansbach.

The readiness to find solutions quickly and simply was

clear to see everywhere from the very beginning. We

had competent contact persons and were able to make

valuable contacts both locally and across the region.

Which starting points do you see for your company

in the Ansbach/Middle Franconia region?

A strong economy needs buildings that are intel-

ligently constructed and efficiently built. Ansbach is

our headquarters for the German-speaking market

and we will be expanding consistently over the next

few years. We see interesting prospects with partners

in the construction industry throughout the region,

as well as with reliable logistics partners from all over

Germany.

How important is Bavaria’s mix of culture, leisure

value and quality of life for you and your staff?

Hugely important, without a doubt. We value long-

term, stable cooperation, including, or indeed espe-

cially, within our company. The well-being of our staff

is therefore very important. Ansbach and Middle Fran-

conia have a lot of offer in this respect. There is a lot to

discover and relaxation is never far away.

Number of the month cities22

Raymund Trost, CEO of the Joris Ide Group, Belgium.

P a g e 3

The label “Made in Germany” has remained significant as an indication of the

origin and quality of a product even in the age of globalisation, especially when it

comes to the law. German law today makes a key contribution to the attractive-

ness of Germany as an investment location. Legal security, transparent process-

es and efficient, independent jurisdiction are seen in a positive light by foreign

investors and create the conditions for good business – from the ease and sim-

plicity of founding a company to the reliable protection of intellectual property.

What does that mean in practice day-to-day?

Investors can expect fast and reliable judicial procedures and benefit from short,

clear contractual constructs and favourable conditions. For example, contracts be-

tween two companies are much shorter under German law than in England, the USA

or the Commonwealth nations, hourly rates for lawyers are low compared to other

countries, and German courts have an excellent reputation for efficiency. Most cases

at district courts are concluded within three months. These are clear advantages for

investors who value reliable conditions.

German law as an export hit

The German Civil Code is considered exemplary even beyond the country’s borders,

and large parts of it were adopted by many eastern European states after the fall

of the Iron Curtain. And its influence goes even further than that: since 2000, there

has been a so-called constitutional state dialogue between the Federal Republic of

Germany and the People’s Republic of China, in which Germany is supporting China

in introducing legal and economic reforms.

Founding companies without hurdles

Everything you need to get off to a flying start: founding a company in Germany

is easy, simple and good value. For example, foreign investors have the option of

founding an independent branch (not a legal entity) or a subsidiary (legal entity).

Crucial criteria in this decision often include the desired role of the shareholders,

possible limitations of liability and tax-related aspects. Thorough consulting in

advance is strongly advised to ensure that the right legal form is chosen and all

arrangements are orientated towards the purpose of the company as well as they

can be. Invest in Bavaria brokers contact to proven experts in all specialist fields –

from solicitors to lawyers for brand, tax and business law – and supports custom-

ers in all phases of founding a company and well beyond that.

www.muenchen.ihk.de/de/recht/Firmenrecht-Gesellschaftsrecht

In focus

10 steps for setting up a branch or company1. Contact Invest in Bavaria.

Show us your convincing project description and you will receive all the

information you need plus top support for your investment project – from

the administrative basis to choosing a location and even establishing your

network in the sector. We also support you in the stages below.

2. Create a business plan.

A coherent business plan makes administrative processes easier and is

the key to funding programmes at the state, federal and EU levels.

3. Choose the right legal form for your company.

Selecting the right legal form when setting up a branch or company plays

a key role.

4. Open a bank account.

You will need your own bank account in Germany to found a company.

It is not difficult to open a bank account.

5. Have all the documents to hand.

Passports of the shareholders, evidence of the capital required – different

documents are needed depending on the legal form.

6. Choose the right partners and experts.

Entrust all questions regarding trade and tax law to a professional lawyer

and tax advisor.

7. Register your company in the trade register.

Your company’s formation deed will be certified by a solicitor, who will

also handle your application for entry into the trade register.

8. Find suitable premises.

Invest in Bavaria provides the location information system SISBY, one of

Europe’s most innovative instruments for location research.

9. Check the immigration and residency requirements.

In many cases, non-EU citizens require a visa and work permit for longer

stays. To find out more, contact the German embassy or consulate in your

home country.

10. Start your business activities.

In some cases, you may be able to start your business activities even

while you are still founding your branch or company in Bavaria.

Streets ahead in legal matters

“The average foundation costs for a GmbH with share capital of

EUR  25,000 amount to around EUR 750, including solicitor’s fees,

court fees and costs for publication. Registration usually takes two

to three weeks.”

Rosina Heck, Munich Chamber of Commerce and Industry (IHK), advisor

on law and tax

P a g e 4w w w. i n v e s t - i n - b a v a r i a . c o m

Traditional costume parade to Oktoberfest

Bavaria in your briefcase

It can be counted among the largest parades of traditional costumes in the world:

the traditional costume parade to Munich’s Oktoberfest. On 22nd September

2013 at 10:00 am, it’s that time again. Around 9,000 people are involved in the

seven kilometre long parade, showing off an impressive variety of costumes, tra-

ditions and folk dancing. Taking part in the parade are not just Bavarian societies

from many regions of the state, but groups from all over Germany and Europe

(including Austria, Italy, Poland, Croatia, Greece, the Czech Republic, Turkey and

Switzerland), whose unusual costumes and bands make the parade particularly

worth watching.

The Münchner Kindl, the emblem of the city, leads the traditional costume parade,

followed by a colourful mixture of magnificent costumes, mountain troops, bands

and flag-wavers. As the grand finale, a few of the bands and orchestras enter the

beer tents and complete the parade with a piece of music.

The traditional costume parade was held for the first time in 1835 in honour of the

silver wedding anniversary of King Ludwig I and Therese of Bavaria. Since 1948

it has been an established part of Oktoberfest, held on the first Sunday of the

event. The spectacle can be enjoyed for two hours from one of fourteen view-

ing platforms. Alongside Munich’s breweries, who are represented every year with

their splendid vehicles, over 40 wonderfully decorated floats and horse-drawn car-

riages make the parade truly unique. Many of them are decorated with depictions

of crafts and traditions, bringing the past back to life.

The world comes together in Bavaria, and there can be few other events that put

the advantages of the location against a more beautiful and magnificent backdrop

than the traditional costume parade.

www.oktoberfest.info/events/trachten-und-schuetzenzug

Traditional costume parade to Munich’s Oktoberfest

Image sources

P. 1: © Thinkstock

P. 2: © Joris Ide Group

P. 3: © Thinkstock

P. 4: © Peter Scholz/Shutterstock.com

Publisher

Invest in Bavaria – The Business Promotion Agency of the Bavarian Ministry of

Economic Affairs, Infrastructure, Transport and Technology and Bayern International.

Widenmayerstr. 34

80538 Munich | Germany

Phone +49 89 24210-7500

welcome@invest-in-bavaria.com

Business Bavaria

Coordination: Alexandra Schmidhuber

Art Direction: Alex Podolay

Editorial Department: www.red.de

Translation: www.aa-boundless.com

Layout: www.red.de

HTML-Version: www.kirchbergerknorr.de

… in MunichEXPO REAL7th–9th October 201316th International Trade Fair for Property and Investment

www.exporeal.net

drinktec16th–20th September 2013World’s leading trade fair for the beverage and liquid food industry

www.drinktec.com

… in NurembergFachPack24th–26th September 2013European specialist trade fair for packaging, technology, processing and logistics

www.fachpack.de/en

it-sa8th–10th October 2013IT security trade fair and congress

www.it-sa.de

… in AugsburgRENEXPO26th–29th September 201314th international energy trade fair and conference

www.renexpo.de

... by and with Invest in BavariaInvest in Bavaria at InnoTech (The Technology and Innovation Conference)on 16th October 2013 in Austin | Texas | USAYour contact:Florian Hubauer | Tel: +1 415 362 1001 florian.hubauer@invest-in-bavaria.com

Trade Fairs and Events

New address from 1st November 2013:

Prinzregentenstr. 22

80538 Munich | Germany