Doing Business in Germany

A major international business hub, Germany’s location in the heart of Europe means that expats doing business in the country have instant access to Western Europe and the emerging markets of Eastern Europe.

Many established companies extend their operations to Germany each year and relocate staff there. Budding entrepreneurs also see it as a great place to start their businesses.

Understanding the market and the nuances of German business etiquette will be key to success in your new surroundings.

Fast facts

Business hours

Mondays to Fridays, 9am to 5pm, with an hour lunch break.

Business language

English is widely spoken and commonly used in multinational business discussions. Still, it would be best if you didn’t automatically assume your associates can speak English. Some knowledge of German is useful for those planning to do business with smaller companies or municipal authorities.

Dress

Formal and conservative – dark suits and corporate wear for men and women in banking, business and finance. In more creative industries such as fashion, art and advertising, there is more freedom in what people can wear.

Gifts

Gift-giving is not a usual part of business culture in Germany. That said, you can give small gifts such as flowers, wine, or chocolate if you are invited into a colleague’s home.

Gender equality

Germany has made great strides towards equality in the workplace and ranks highly internationally in this regard.

Business culture in Germany

The business culture in Germany tends to be quite conservative. If you wish to be successful and make a good impression in the local workplace, you must understand and incorporate elements of German business culture into their practices.

Efficiency

Business culture in Germany is formal, and efficiency in the workplace is paramount. Time is money – so being punctual is important. Once the meeting begins, Germans get straight to business, and there’s little room for small talk.

Formality

Business meetings in Germany are formal affairs; first names are rarely used in business relationships. Punctuality and appearance are critical, so you should dress well and arrive at meetings fully prepared and on time.

It’s best to avoid humour, especially at first, as it can be misconstrued. One should expect to be asked detailed questions and have facts and figures on hand to back up what is being presented.

Language

Although most Germans speak English well, many prefer to speak their language during business negotiations. You should consider hiring a translator for key meetings if you don’t speak German.

Greetings

Handshakes are the customary greeting in professional and social contexts. Business contacts must be addressed by their surname, which is to be preceded by Herr for men and Frau for women. First names are only used when invited to do so by a senior person, usually once some level of mutual respect has been established.

Networking

Expats will find that Germans are private and maintain a strict separation between work and home life, so it will take some time to forge more personal relationships with colleagues. At lunch meetings, you should allow the host to start business discussions and shouldn’t be surprised if alcohol is served.

Dos and don’ts of business in Germany

• Do arrive well-prepared for meetings and ready to answer questions
• Don’t arrive late to meetings or job interviews. Punctuality is important.
• Do dress formally in the workplace. Dark suits and corporate wear are safe options.
• Don’t assume everyone speaks English. Learn some German before starting a business venture, or consider using an interpreter for critical meetings.
• Do maintain eye contact when addressing German colleagues, especially during initial introductions
• Don’t try to integrate humour into the business environment