International Business / Executive Travel: SPOTLIGHT ON GERMANY : When Doing Business There . . .

Business practices in Germany, a member of the Group of Seven industrialized nations, are similar to customs in the United States. But there are some legal, practical and cultural variations.

DO:

* Expect German businessmen to speak and understand English. Although German is the official language, members of the international business community are invariably fluent in English, in addition to having a good command of at least one other foreign language.

* Be prepared to start your business day at 8 a.m. Generally, the workday ends at 5 p.m., but many businesses close early on Fridays.

* Check to see which holidays are observed in the area you are visiting. Germany has 16 legal holidays a year, but not all are recognized in all parts of the country.

* Be punctual for appointments. In Germany, there is no such thing as “fashionably late,” even for social functions.

* Allow a third person to introduce you to people with whom you wish to have a business relationship. Germans prefer to meet strangers through another person rather than introducing themselves directly.

* Familiarize yourself with European Union regulations and procedures. Many aspects of German business, including international trade, are regulated by EU rules.

* Consider investing in eastern Germany. The German government offers substantial incentives for moving capital into almost any sector of the depressed eastern German economy.

* Hire German legal and tax advisers at an early stage when forming a new business venture. Where you locate and the legal structure of your business will influence your overall tax burden.

* Apply for a residence permit if you plan to stay in Germany for longer than three months. A temporary residence permit may be obtained once you get there.

DON’T:

* Don’t bother to get a visa if you will be staying less than three months. Since the United States is a member of the North Atlantic Treaty Organization, your U.S. passport will suffice when visiting Germany on business.

* Don’t count on government offices being open in the afternoon. They are typically open to the public between 8:30 a.m. and noon. However, you may make an afternoon appointment in advance.

* Don’t expect American banking hours. German banks are typically open from 9 a.m. to 1 p.m. and from 2:30 to 4 p.m. during the week. Some remain open longer on Thursdays.

* Don’t write dates in the American order of month, day, year. The traditional German order is day, month, year, but many government offices and others follow the European Union style of year, month, day. For example, today’s date would be written as 1994.06.30.

* Don’t expect special treatment as a foreign investor. The German government has no special programs to encourage foreign investment. Foreign companies receive the same benefits as domestic firms and are subject to the same regulations.

* Don’t wait to be seated when dining at a German restaurant. Except in the most formal of restaurants, there are no hosts or hostesses to greet and seat you.

Sources: Price Waterhouse, Consulate General of the Federal Republic of Germany