After acquiring a German GmbH, many foreign companies are faced with the challenge of setting up proper accounting, payroll, and tax compliance structures according to German regulations. Unlike in many other jurisdictions, Germany has complex and formalized rules for bookkeeping, tax filings, and employment, which often differ significantly from international or group-wide standards.
At WW+KN, a Baker Tilly Company, we specialize in assisting foreign investors during the post-acquisition phase and help ensure a smooth and fully compliant setup of all financial and tax processes.
1. Typical Challenges After Acquiring a German GmbH
Foreign parent companies regularly encounter the following challenges after taking over a German GmbH:
- Need to implement German GAAP (HGB) compliant bookkeeping
- Setup of proper payroll processes, including registrations with social security and tax authorities
- Adapting internal reporting to meet both local and group requirements
- Implementation of transfer pricing documentation for intra-group transactions
- Integration into group structures (e.g., cash pooling, intercompany loans, management fees)
- Dealing with past non-compliance or structural deficits of the acquired GmbH
2. Our Support Services After the Acquisition
We provide comprehensive support for all key financial, tax, and HR functions, ensuring full compliance and alignment with your group’s needs:
a) Accounting & Financial Reporting
- Setup or restructuring of the German accounting system
- German GAAP (HGB) and optional IFRS or group reporting alignment
- Ongoing bookkeeping, financial statement preparation, and audits
- Management reporting tailored to foreign headquarters
b) Payroll & HR Compliance
- Setup of payroll processes for employees
- Registration with social security and tax offices
- Handling of employment contracts, onboarding, and monthly payroll
- Compliance with German labor law and reporting obligations
c) Tax Compliance
- VAT registration and ongoing filings
- Corporate income tax, trade tax, and payroll tax returns
- Assistance with deferred taxes and tax disclosures in financial statements
- Communication with German tax authorities
d) Transfer Pricing & Intercompany Transactions
- Design and implementation of transfer pricing systems
- Documentation according to German and OECD requirements
- Preparation of local files for the German GmbH
- Ongoing support for intercompany billing and adjustments
3. Smooth Transition into the German Market
Post-acquisition, it is essential to establish reliable and transparent financial and payroll structures to:
- Avoid tax risks
- Ensure full compliance with German laws and regulations
- Meet the expectations of auditors, shareholders, and tax authorities
- Enable smooth integration into the global group
Our team of experienced German tax advisors, accountants, and payroll specialists ensures that all processes are handled professionally and efficiently. For more complex legal or transfer pricing questions, we work closely with the experts from Baker Tilly.
4. Why Foreign Companies Choose WW+KN
- Many years of experience working with international groups and foreign investors
- Full-service provider: accounting, tax, payroll, and reporting from one source
- Native-speaking contact persons (English)
- Close cooperation with specialized lawyers and transfer pricing experts within Baker Tilly
- Tailored solutions adapted to your group’s structure and reporting requirements
Important Note
This article provides general information only and does not constitute legal advice. Please consult a qualified advisor for an assessment of your specific situation.
If you have any questions regarding post-acquisition support for German subsidiaries, please feel free to contact us.
We are WW+KN, a Baker Tilly Company.
You can reach us at info@wwkn.de.
