While Germany’s Foreign Economic Law contains a provision permitting restrictions on private
direct investment flows in either direction for reasons of foreign policy, foreign exchange, or
national security, in practice no such restrictions have been imposed.
German law provides foreign investors national treatment: under German law, a foreign-owned
company registered in the Federal Republic of Germany (FRG) as a GmbH (limited liability
company) or an AG (joint stock company) is treated the same as a German-owned company.
There are no special nationality requirements for directors or shareholders.