Our client is an international natural cosmetics manufacturer that belongs to a leading global luxury goods group. Until then, the German market had been served through distributors. For the next stage of its expansion, it was to be developed as a proprietary retail market, with a German subsidiary, local management and its own stores.
Building the Company, Store Network and Team in Parallel
The market entry had to be prepared on several levels at the same time. A German entity needed to be incorporated and integrated into the international group structure. In parallel, the business was identifying sites, negotiating commercial leases and recruiting a team across all levels, including management roles.
In retail, those workstreams are directly connected. Staffing plans depend on secured premises, store openings on employment contracts signed in time. The local operation also needs clear corporate authority from the outset so that decision-making and representation work reliably. The foreign management also needed German legal and administrative requirements to be translated into practical, understandable actions.
Legal Support Throughout the Market Entry
Maxfeld.legal first supported the incorporation and corporate structuring of the German subsidiary. We then assisted with the recruitment process through German employment contracts, agreements for management positions and ongoing advice on the developing workforce. As the operation grew, the mandate extended to termination agreements and representation in unfair dismissal proceedings before the German labour courts.
For the planned stores, we reviewed and negotiated the commercial leases. Alongside rent and term, the work covered fit-out, handover, operating obligations, permits, maintenance and exit scenarios. Corporate, employment and lease matters were managed as one project throughout.
A central contact brought the workstreams together, prioritised decisions and converted German legal requirements into clear next steps for the international management. This maintained a consistent approach even as several store and employment matters progressed in parallel.
Several Stores Opened and a Stable Structure Established for the German Business
The market entry was implemented in a structured manner, several stores opened and the German operation reached a stable footing. Coordinating incorporation, people and leases from the outset avoided the typical friction between group headquarters, local management, landlords and employees.
The German subsidiary had a sustainable legal structure and a single point of contact for its day-to-day business. New employment matters, contract changes and disputes could therefore be addressed in the context of the overall German operation.
Corporate, Employment and Commercial Lease Law Working Together
The core areas were corporate law, employment law and commercial tenancy law. The decisive factor was their interaction: the corporate structure created legal capacity, the team was built under German employment law, and the leases secured the operating locations.
