Germany To Help Start-Ups With Legal and Financial Reforms

June 2022

The German Ministry of Finance and Ministry of Justice have announced sweeping reforms aimed at making it easier for start-ups, high-growth companies and small to medium-sized companies to access capital markets.

The proposed measures encompass:

  • reducing the minimum capital required for IPOs to EUR one million, with further action to be considered
  • digitalization of the capital market including the possibility of issuing stocks as electronic securities
  • introduction of dual class shares
  • better tax incentives for stock and wealth investment, especially by supporting saving through equity and raising deductibles on profits made from the sale of stocks and funds
  • significant improvements in the tax conditions, including more than tripling the deductible, for employee stock options.

“We want to make Germany into a leading location for start-ups and high-growth companies,” said Finance Minister Christian Lindner in a statement. “To that end we are improve access to capital markets and making it easier for companies to raise their own capital. This will also benefit SMEs…We are easing financial market regulations, further developing corporate law and improving tax law conditions, particularly for employee stock options.”

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