Types of investments
Basically, foreign investors can set up a new domestic company
or acquire a domestic company. This decision depends on a
number of geographical, financial and industrial factors, all of
which need to be considered. A cost-beneft analysis or refer-
ence analysis always has to take into account all circumstances
with regard to the individual case.
The requirements to be met when starting a business depend
on the legal form chosen. When establishing a corporation ,
formal requirements are
comparatively more exacting than the requirements to be met
when setting up a partnership.
The timeline that has been set for entering the domestic market
should not be neglected either. Given this situation, it can
often make sense to acquire a business, as this would allow a
comparatively fast market penetration through the already es-
tablished organization of the acquired business.
acquire a domestic business by purchasing shares in a company
(share deal ), or by
purchasing assets by way of singular succession (asset deal –
individual transfer of assets and liabilities – ).
In most cases, potential gains resulting
from the sale, subsequent measures, and the deductibility of
refinancing expenses will determine which type of business
acquisition will be the best in tax terms.
In addition to the acquisition types described above, there is
also the option to enter or expand into the domestic market by
virtue of corporate reorganization (e. G. A merger with a domestic