German law firm for startups in Munich
Advice for founders, employees and investors in Germany
Our certified specialists, attorneys and tax advisors advise founders, investors and companies in Munich - from start-up to financing and all questions of german company management to exit.
Our services for german startups at a glance
Classic startup topics actually run through all legal areas of german business law - after all, these are basically young entrepreneurs who need to be just as trained in many areas of the law in Germany as medium-sized or large entrepreneurs - albeit often with a different focus and different problems under german law.
When it comes to the need for legal advice that arises among founders of german startups, it often makes sense to make a decision based on the respective phase and progress of the startup:
- In the initial startup phase, in german practice, it is often a matter of drafting the necessary founding documents and writing up internal agreements among the parties involved.
- Once this has been clarified, the second phase is usually about financing and the respective conditions of investors in Germany.
- Alongside this, but increasingly after funding has been obtained, the focus then often shifts to corporate management: employees need to be hired and startups in Germany in particular often have to deal with participation agreements such as ESOPs and VSOPs. In addition, issues of data protection, IT/IP law and tax law are part of the day-to-day operations.
- Finally, all german startups sooner or later deal with a possible exit, i.e. the sale of the company as a whole or in parts, or a possible IPO.
Our certified specialists, attorneys and tax advisors are able to provide advice and support at all stages due to effective teamwork and a broad range of knowledge and experience. Our team in Munich easily harmonizes with our other offices in Berlin, Frankfurt, Hamburg and Cologne.
Foundation and financing - issues in german corporate law
Our lawyers and certified specialists for german corporate law advise and accompany start-ups and investors in Munich and all over Germany in the following areas
- Company formations, from GbRs to GmbHs to stock corporations ("Kleine AG")
- Startup financing (venture capital, growth capital) through equity capital, convertible loans, dormant partner's interests
- Financing rounds (seed, Series A, B, C, D), including drafting and negotiation of participation agreements / shareholder agreements
- Employee participation (employee stock ownership, management participation, real participation ESOP, virtual participation VSOP, vesting)
- Preparation and execution of exits
- Formation of investment vehicles
Our lawyers and certified specialists do not shy away from contentious disputes in startups and provide advice and support all over Germany in the following cases
- Disputes in startups between founding shareholders and investors
- Disputes among founding shareholders
- Disputes among investors (lenders, venture capitalists, VC investors, growth capitalists)
- Enforcement and defense of claims arising from management contracts, investment agreements and participation agreements
- Complex shareholder resolutions and shareholder meetings
- Exclusion and termination of managing directors and shareholders
Employees & Managing Directors: Employment Law Services in Germany
Our lawyers and certified specialists advise and assist start-ups and investors in Munich and all over Germany in the following areas
- Drafting, reviewing and terminating management contracts
- Drafting of employment contracts according to german employment law
- Conception and design of alternative employment relationships
- Advice on employee shareholdings, employee share ownership programs (investment company, ESOP, VSOP)
- Representation in termination, actions for protection against dismissal, termination agreements/contracts in Germany
Media, IT/IP and Data Protection & Competition in Munich Germany
Our lawyers and certified specialists advise and assist start-ups and investors in Munich and all over Germany with regard to
- Protection of IP, trade secrets and know-how, including non-disclosure agreements NDAs under german IP law
- Trademarks, design, licenses and industrial property rights
- Data protection compliant design of all business transactions (especially DSGVO)
- Outsourcing and digitalization, especially Software as a Service (SaaS) models
- Contracts for agile software development, including care and maintenance contracts and service level agreements (SLA)
- German competition law, warning letters and defense against warning letters in cases of anti-competitive behavior
Taxes: Services of our tax advisors & certified specialists for german tax law
We advise and assist startups in Germany with
- Tax structuring of investment vehicles and holding companies
- Company valuation
- Optimization of taxation
- Cross-border tax issues
- Ongoing tax consulting (accounting, annual financial statements)
T&C (AGB), franchise and distribution: operational business of german startups
Our lawyers and certified specialists advise and assist startups and investors in Germany on
- Contracts of the operational business
- Supply contracts, general terms and conditions (AGB)
- Distribution contracts, especially franchises, classic commercial agency contracts
FAQ to our lawyers for startups in Munich
When do startups, founders and shareholders need a lawyer in Germany?
Startups, founders and shareholders in Germany should consult a lawyer at the latest (!) when expert advice is required:
- For contracts which, due to their complexity, cannot simply be "read down",
- When it comes to particularly serious decisions, e.g. when shareholders, new shareholders and investors join or leave the german company
- When agreements, contracts are used several times, e.g. employment contracts, employee participation or data protection declarations
- When the gut feeling says so
Our experience shows that often the way to a lawyer is shied away due to cost reasons. However, experience also shows that this usually becomes even more expensive.
Can legal fees be tax deductible in Germany?
Yes, under german tax law, a startup's legal fees are usually tax deductible as a business expense if the legal advice was provided in the "business interest". But shareholders can also usually deduct legal fees for tax purposes if they are related to their investment in Germany. Although the deduction cannot be made immediately, it can be made at the latest upon sale/exit. And an employee's legal fees are also deductible as income-related expenses if they are incurred in connection with a matter relating to german employment law.
How many lawyers for startups are there in Munich Germany?
The Munich Bar Association has over 22,000 members, more than any other city in Germany. Unfortunately, the statistics do not show how many of them also or exclusively handle mandates in corporate law and especially in the startup sector. Note: The figures refer to 01.01.2021