The New Companies Promotion Act (Neugründungsförderungsgesetz – NeuFöG) aids business starters and company successors in saving start-up costs.
Business starters and company successors are exempt from court and stamp fees, federal administration fees, land transfer tax, capital duty and stock exchange turnover tax, all of which accrue when businesses are established or companies are taken over by a successor. In order for it to apply, the new business owner must not have been self-employed in the same business segment (!) within the past 15 years and he or she must have attended a start-up counselling session with their respective interest group.
In addition, business starters (this does not apply to company successors) pay 7 percent less in non wage labour costs if they hire staff in their first year of establishment: they also do not have to pay the employer’s contribution to the Family Burdens Equalisation Fund (4.5 percent), the contribution to housing subsidies (0.5 percent), the second chamber contribution (i.e. the surcharge on the employer’s contribution, which varies according to Land) and the industrial accident insurance contribution.
The NeuFöG applies for an unlimited period.
The forms for claiming the NeuFöG benefits can be obtained from the Start-up Service of the Economic Chambers (only available in German).